Our 16th company in the Series of Best Stocks to Buy in India for Short term 2021 is Bharat Petroleum Corporation Ltd.
This company is good for investing purpose or not ?
Let’s start with the Company profile
Company Profile :
Bharat Petroleum Corporation Limited is engaged in offering motor spirit (MS), high speed diesel (HSD) and liquefied petroleum gas (LPG). The Company is engaged in the business of refining of crude oil and marketing of petroleum products.
Now Let’s check the important fundamental figures of this company. This is a large cap company with Market Cap ₹92,486cr. We can check more fundamental details below in depth:
Company Fundamental Detail :
PE Ratio: 5.72
Sector PE Ratio: 33.46
PE Ratio of this company is low than Sector’s PE. So it’s a Average PE than the peers of this company.
PB Ratio : 1.73
Sector PB Ratio :3.12
PB Ratio of this company is low than Sector’s PB ratio. So it’s Average PB than the peers of this company.
Dividend Yield :17.88%
Sector Dividend Yield : 1.05%
Dividend Yield of this company is high than Sector. Dividend of this is Good than the peers of this company.
ROE: 30.18%
ROCE: 18.46%
ROE (Return on equity) and ROCE (Return on capital equity) is Average
According to above data, this company is looking fundamentally average. Now We’ll check the company Financially data:
Company Financial Detail
| Year | Revenue(cr.) | Profit(cr.) |
| 2021 | 2,37,681.43 | 16,164.98 |
| 2020 | 2,87,901.90 | 3,055.36 |
| 2019 | 3,01,200.45 | 7,802.30 |
| 2018 | 2,38,858.39 | 9,008.63 |
We should check now liabilities of company also in the below table
Total Current & Non Current Liabilities
| 2021 | 2020 | 2019 | 2018 |
| 1,07,433.42 | 1,12,271.32 | 96,091.35 | 81,832.40 |
Liabilities of a company refers to the debt of that company. We should also aware the debt of company. In 2021 , Company have 1,07,433.42 Cr. debt.
Let’s check the Free Cash flow of the company
Free Cash flow
| 2021 | 2020 | 2019 | 2018 |
| 14,347.89 | -4,315.95 | -384.15 | 3,315.87 |
Debt Level: BPCL’s debt to equity ratio (88.9%) is considered high.
Reducing Debt: BPCL’s debt to equity ratio has increased from 87.4% to 88.9% over the past 5 years.
Debt Coverage: BPCL’s debt is well covered by operating cash flow (49.5%).
Interest Coverage: BPCL’s interest payments on its debt are well covered by EBIT (9.7x coverage).
Share Holding Pattern
| Promotor Holding | Foreign Institution | Mutual Fund | Other Domestic Institutions | Retail & Others | |
| Jun 2021 | 52.98% | 11.97% | 14.67% | 7.05% | 13.32% |
| Mar 2021 | 52.98% | 12.63% | 15.44% | 6.92% | 12.04% |
| Dec 2020 | 52.98% | 12.42% | 16.38% | 6.93% | 11.29% |
| Sep 2020 | 52.98% | 11.56% | 13.26% | 6.80% | 15.39% |
Above table showing there is no big change in Promotor Holding which is 52.98% in June 2021. FIIs invested in June 2021 with 11.97% and retail investor is 13.32%.
Now We’ll check the return of the company, This company given 23.81% returns in last 1 year from 2020 to 27 Oct 2021.
Investment Checklist for Bharat Petroleum Corporation Ltd.
- The company is currently profitable
- Earnings are forecast to decline by an average of 3.2% per year for the next 3 years
- Has a high level of debt
- Unstable dividend track record
- Large one-off items impacting financial results
- Share price has been stable over the past 3 months
- Profit margins improved or BPCL became profitable
- They have sufficient analyst coverage
- No concerning events detected
- Shareholders have not been meaningfully diluted in the past year or recently listed
- Revenue is meaningful (₹2,631B)
- Market cap is meaningful (₹942B)
- BPCL does not have negative shareholders equity.
According to its historical performance we can predict stock target.
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Entry Buying Zone : Premium members can see only
Target: Premium members can see only
Time Horizon:Premium members can see only
Risk Profile: Premium members can see only
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Entry Buying Zone : 400 to 430
Target: 550 (30% Upside)
Time Horizon: 6-8 Months
Risk Profile: Low Risk (Stock is 1.88x as volatile as Nifty)
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Hope you liked Our 16th company in the Series of Best stocks to buy in India for short term 2021. We tried to cover many important things about this company, if you think anything left to cover, you can comment us and we’ll try to cover those things also.
Disclaimer: This is an Educational Initiative and is NOT registered under any SEBI regulations. All the information that we provide is just for Educational purposes and you should consult your financial adviser before taking any investment decision. Also we do NOT provide any form of Stock Tips or Advise on stocks or portfolios. My All Trades Only Education Purpose. All trades will be at your risk. You have the responsibility of any trade or any benefit or loss