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Last Updated on: 21 November, 2024
Author: Getaka|Social: Getaka Financial Services X (Earlier Twitter) Profile Getaka Financial Services LinkedIn Logo
Stock Ticker - BSE: 500547 | NSE: BPCL

Bharat Petroleum Corporation Ltd: Intrinsic Value and Fundamental Analysis

Share Price and Basic Stock Data

Last Updated: November 21, 2024, 10:23 pm

Market Cap 1,22,498 Cr.
Current Price 282
High / Low376/200
Stock P/E9.15
Book Value 178
Dividend Yield7.44 %
ROCE32.1 %
ROE41.9 %
Face Value 10.0
PEG Ratio0.16

Stock P/E, Current Price, and Intrinsic Value Over Time

View Share Price Target for Bharat Petroleum Corporation Ltd

Competitors of Bharat Petroleum Corporation Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
Reliance Industries Ltd – Share Price and Detail Financial Report 16,55,475 Cr. 1,2231,609/1,18524.4 6060.41 %9.61 %9.25 % 10.0
Mangalore Refinery & Petrochemicals Ltd 25,442 Cr. 145289/11227.9 70.12.07 %25.8 %32.0 % 10.0
Indian Oil Corporation Ltd 1,84,537 Cr. 131197/10010.8 1289.18 %21.1 %25.7 % 10.0
Hindustan Petroleum Corporation Ltd 76,750 Cr. 360457/20418.3 2165.83 %21.3 %40.4 % 10.0
Chennai Petroleum Corporation Ltd 8,481 Cr. 5691,275/56512.4 5029.66 %35.4 %36.5 % 10.0
Industry Average345,530.50N/A17.16N/AN/A24.2230.96N/A

All Competitor Stocks of Bharat Petroleum Corporation Ltd

Quarterly Result

MonthDec 2020Mar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023
Sales66,07576,68870,94676,43995,121104,080121,082114,820119,170118,115112,985103,044115,499
Expenses61,34970,36667,82171,47490,01998,126126,906113,406114,957107,03197,20090,104109,300
Operating Profit4,7266,3223,1254,9655,1025,954-5,8241,4154,21311,08515,78512,9416,199
OPM %7%8%4%6%5%6%-5%1%4%9%14%13%5%
Other Income2517,1671,9791,1316881,131615673415344800694698
Interest3455795826116607527109371,128970869973700
Depreciation1,0731,1241,1501,3491,3941,6031,6171,5611,5861,6051,6141,6051,830
Profit before tax3,55911,7863,3724,1363,7374,730-7,537-4101,9138,85414,10311,0564,367
Tax %47%10%15%23%26%41%18%17%9%22%25%25%27%
Net Profit1,90110,6422,8733,2012,7592,803-6,148-3381,7476,87010,6448,2443,181
EPS in Rs7.2247.4913.2414.7612.7212.92-28.34-1.568.0531.6749.0738.0014.67

Last Updated: Unknown

Quarterly Chart

Profit & Loss - Annual Report

Last Updated: Unknown

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023TTM
Sales212,140242,181264,421242,598187,815201,251235,895298,226284,572230,171346,791473,187449,644
Expenses207,178235,472255,007232,818174,844187,468220,578283,113275,597209,170327,654462,288403,634
Operating Profit4,9616,7099,4149,78012,97113,78315,31715,1128,97521,00119,13710,89946,009
OPM %2%3%4%4%7%7%6%5%3%9%6%2%10%
Other Income1,3081,4921,3442,1171,9132,7212,9272,9751,3937,4894,9392,0362,537
Interest2,2592,5181,9821,1806806961,1861,7642,6371,7232,6063,7453,512
Depreciation2,4112,4632,6113,0272,0722,1082,8853,4184,0804,3345,4346,3696,654
Profit before tax1,5993,2206,1667,69012,13213,70014,17412,9053,65222,43216,0372,82138,380
Tax %47%40%34%34%33%31%31%34%-0%23%27%24%
Net Profit8511,9364,0535,0828,0899,5079,7928,5283,66617,32011,6822,13128,940
EPS in Rs3.608.6718.0322.1637.2940.2041.5335.9714.0874.5253.859.82133.41
Dividend Payout %55%42%31%34%25%49%46%48%106%102%29%40%

Profit & Loss Yearly Chart

YoY Net Profit Growth

Year2012-20132013-20142014-20152015-20162016-20172017-20182018-20192019-20202020-20212021-20222022-2023
YoY Net Profit Growth (%)127.50%109.35%25.39%59.17%17.53%3.00%-12.91%-57.01%372.45%-32.55%-81.76%
Change in YoY Net Profit Growth (%)0.00%-18.15%-83.96%33.78%-41.64%-14.53%-15.91%-44.10%429.46%-405.00%-49.21%

Bharat Petroleum Corporation Ltd has shown an inconsistent trend in YoY Net Profit Growth (%) in the last 11 years from 2012-2013 to 2022-2023.

Growth

Compounded Sales Growth
10 Years:5%
5 Years:8%
3 Years:25%
TTM:-1%
Compounded Profit Growth
10 Years:21%
5 Years:28%
3 Years:29%
TTM:-53%
Stock Price CAGR
10 Years:9%
5 Years:2%
3 Years:13%
1 Year:40%
Return on Equity
10 Years:24%
5 Years:23%
3 Years:24%
Last Year:42%

Last Updated: Unknown

Balance Sheet

Last Updated: November 15, 2024, 1:35 am

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Sep 2024
Equity Capital7237237236561,3111,9671,9671,9672,0932,1292,1292,1364,273
Reserves16,05218,70321,82527,13829,50834,65236,79834,56551,46249,77651,39373,49972,835
Borrowings33,15733,15225,49223,38835,72537,65944,83965,47654,53264,53469,37654,59958,880
Other Liabilities29,69635,88238,28135,24142,54146,07853,32248,85252,89171,08965,21072,18475,238
Total Liabilities79,62888,46086,32286,422109,086120,356136,926150,860160,978187,529188,109202,418211,226
Fixed Assets24,72127,58029,10925,35833,68445,53949,31560,17564,09883,90186,67586,798100,261
CWIP7,4639,37215,78717,45916,8349,87513,65417,75717,03715,43316,24920,2049,127
Investments7,4706,9857,7129,40121,32723,72524,90727,02926,76823,61626,77826,63127,239
Other Assets39,97444,52333,71434,20337,24141,21749,05045,90053,07564,57858,40668,78574,599
Total Assets79,62888,46086,32286,422109,086120,356136,926150,860160,978187,529188,109202,418211,226

Reserves and Borrowings Chart

Cash Flow

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Cash from Operating Activity +5,9269,58820,74211,1199,04111,06810,1577,88123,45520,33612,46635,936
Cash from Investing Activity +-3,604-6,881-10,536-9,233-15,274-7,066-10,451-11,135-2,474-8,138-7,806-10,521
Cash from Financing Activity +-846-3,736-9,792-1,3324,804-4,2182073,583-13,981-17,672-4,402-25,427
Net Cash Flow1,476-1,029414555-1,429-215-873297,000-5,474257-12

Free Cash Flow

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Free Cash Flow4.00-27.00-24.00-16.00-11.00-22.00-22.00-29.00-57.00-33.00-45.00-59.00

Free Cash Flow = Income Generated from Operational Activities - Borrowings - Capital Work in Progress (CWIP)

Consistent positive free cash flow is crucial for businesses as it indicates their ability to generate cash from their core operations. It provides financial flexibility, allowing companies to invest in growth opportunities, pay dividends to shareholders, reduce debt, and weather economic downturns more effectively.

Free Cash Flow Chart

Financial Efficiency Indicators

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Debtor Days76449887121057
Inventory Days333529344541323252513242
Days Payable152022192427251932372027
Cash Conversion Cycle252212193021162033241721
Working Capital Days1410-17-18-16-6-3-7-15-8-5-5
ROCE %12%16%17%25%24%21%18%9%18%16%7%32%

Financial Efficiency Indicators Chart

Share Holding Pattern

MonthSep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024
Promoters52.98%52.98%52.98%52.98%52.98%52.98%52.98%52.98%52.98%52.98%52.98%52.98%
FIIs11.97%12.66%13.69%13.17%12.96%12.53%12.57%12.55%13.01%14.21%16.79%15.04%
DIIs21.73%21.14%19.85%20.70%20.90%21.80%22.59%23.10%22.53%22.13%21.30%21.31%
Government0.86%0.86%0.86%0.86%0.94%0.94%0.94%0.94%0.94%0.94%0.94%0.94%
Public12.15%12.05%12.31%11.98%12.23%11.44%10.61%10.12%10.21%9.44%8.00%9.73%
Others0.32%0.32%0.32%0.32%0.00%0.32%0.32%0.32%0.32%0.32%0.00%0.00%
No. of Shareholders7,69,8958,37,4569,30,4869,41,2429,42,6359,09,7178,58,1368,16,7218,17,3397,49,2137,23,57110,39,006

Shareholding Pattern Chart

No. of Shareholders

Mutual Fund Holdings

Fund NameNo of SharesAUM (%)Amount Invested (Cr)Previous Number of SharesPrevious DatePercentage Change
SBI Nifty 50 ETF17,254,5210.61041.915,770,8002024-11-20199%
ICICI Prudential Bluechip Fund12,998,7181.52784.935,770,8002024-11-20125.25%
HDFC Balanced Advantage Fund - Regular Plan12,926,8000.99780.585,770,8002024-11-20124%
ICICI Prudential Bharat 22 ETF9,796,2693.56592.145,770,8002024-11-2069.76%
Kotak Flexicap Fund - Regular Plan7,500,0001452.895,770,8002024-11-2029.96%
Tata Equity P/E Fund - Regular Plan7,370,0006.13445.045,770,8002024-11-2027.71%
Tata Equity P/E Fund - Regular Plan - Trigger Option A 5%7,370,0006.13445.045,770,8002024-11-2027.71%
SBI Long Term Equity Fund6,991,1781.99422.165,770,8002024-11-2021.15%
ICICI Prudential Value Discovery Fund6,527,1510.97394.145,770,8002024-11-2013.11%
Kotak Equity Arbitrage Fund - Regular Plan5,770,8000.89348.475,770,8002024-11-200%

ROCE Trend

EPS Trend

Key Financial Ratios

MonthMar 24Mar 23Mar 22Mar 21Mar 20
FaceValue10.0010.0010.0010.0010.00
Basic EPS (Rs.)126.0810.0154.9181.8715.53
Diluted EPS (Rs.)126.0810.0154.9181.6015.53
Cash EPS (Rs.)152.4429.6273.17105.0232.26
Book Value[Excl.RevalReserv]/Share (Rs.)354.05251.34243.75255.89196.19
Book Value[Incl.RevalReserv]/Share (Rs.)354.05251.34243.75255.89196.19
Revenue From Operations / Share (Rs.)2097.482222.111628.551099.721446.81
PBDIT / Share (Rs.)216.8158.17100.52112.5252.26
PBIT / Share (Rs.)185.1128.2675.0091.8131.51
PBT / Share (Rs.)164.442.9568.10108.7411.44
Net Profit / Share (Rs.)120.74-0.2847.6584.3111.52
NP After MI And SOA / Share (Rs.)125.7310.0154.8677.2415.53
PBDIT Margin (%)10.332.616.1710.233.61
PBIT Margin (%)8.821.274.608.342.17
PBT Margin (%)7.830.134.189.880.79
Net Profit Margin (%)5.75-0.012.927.660.79
NP After MI And SOA Margin (%)5.990.453.367.021.07
Return on Networth / Equity (%)35.513.9822.5030.188.36
Return on Capital Employeed (%)32.535.3115.2818.466.83
Return On Assets (%)13.261.136.2210.042.02
Long Term Debt / Equity (X)0.350.770.700.661.04
Total Debt / Equity (X)0.601.131.080.741.53
Asset Turnover Ratio (%)2.292.522.331.602.16
Current Ratio (X)0.810.740.740.910.71
Quick Ratio (X)0.280.230.230.440.34
Inventory Turnover Ratio (X)5.265.844.402.905.22
Dividend Payout Ratio (NP) (%)0.0061.07126.2728.18157.71
Dividend Payout Ratio (CP) (%)0.0015.3186.1822.2267.53
Earning Retention Ratio (%)0.0038.93-26.2771.82-57.71
Cash Earning Retention Ratio (%)0.0084.6913.8277.7832.47
Interest Coverage Ratio (X)11.163.318.2213.663.90
Interest Coverage Ratio (Post Tax) (X)7.281.424.468.182.36
Enterprise Value (Cr.)167867.32131143.96130185.83121429.00118894.09
EV / Net Operating Revenue (X)0.370.270.370.520.41
EV / EBITDA (X)3.6210.596.085.1611.57
MarketCap / Net Operating Revenue (X)0.280.150.220.380.21
Retention Ratios (%)0.0038.92-26.2771.81-57.71
Price / BV (X)1.701.371.471.671.70
Price / Net Operating Revenue (X)0.280.150.220.380.21
EarningsYield0.200.020.150.180.04

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value of Bharat Petroleum Corporation Ltd as of November 21, 2024 is: 733.20

Calculation basis:

  • Fair value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100)
  • P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
  • Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance.
  • Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
  • Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.

This formula allows us to gauge the fair value of the stock by analyzing its fundamental indicators.

As of November 21, 2024, Bharat Petroleum Corporation Ltd is Undervalued by 160.00% compared to the current share price 282.00

Intrinsic Value of Bharat Petroleum Corporation Ltd as of November 21, 2024 is: 1,149.58

Calculation basis:

  • Intrinsic value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100) * (1 + EPS CAGR for Last 5 Years)
  • P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
  • Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance.
  • Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
  • Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.
  • EPS CAGR (Compound Annual Growth Rate): Represents the geometric mean growth rate of earnings per share over the last 5 years. It provides insight into the historical growth trajectory of the company's earnings.

This formula allows us to gauge the intrinsic value of the stock by analyzing its fundamental indicators along with EPS growth.

As of November 21, 2024, Bharat Petroleum Corporation Ltd is Undervalued by 307.65% compared to the current share price 282.00

Last 5 Year EPS CAGR: 56.79%

*Investments are subject to market risks

Strength and Weakness

StrengthWeakness
  1. The stock has a high average ROCE of 17.92%, which is a positive sign.
  2. The stock has a low average Working Capital Days of -6.33, which is a positive sign.
  3. The company has shown consistent growth in sales (281.77 cr) and profit (11.46 cr) over the years.
  1. The stock has a high average Cash Conversion Cycle of 21.67, which may not be favorable.
  2. The company has higher borrowings (46,216.08) compared to reserves (39,862.00), which may suggest financial risk.

Stock Analysis

  • Considering all of the following key financial indicators, prospective investors are encouraged to conduct thorough research and seek professional guidance before considering any investment in Bharat Petroleum Corporation Ltd:
    1. Net Profit Margin: 5.75%
      • Net Profit Margin: This metric indicates the percentage of profit a company makes from its total revenue. A higher net profit margin is generally desirable as it reflects better profitability.
    2. ROCE: 32.53% (Industry Average ROCE: 24.22%)
      • ROCE (Return on Capital Employed): ROCE measures a company's profitability and the efficiency with which its capital is employed. A higher ROCE indicates efficient use of capital.
    3. ROE%: 35.51% (Industry Average ROE: 30.96%)
      • ROE (Return on Equity): ROE measures a company's profitability relative to shareholders' equity. A higher ROE indicates efficient use of shareholders' funds.
    4. Interest Coverage Ratio (Post Tax): 7.28
      • Interest Coverage Ratio: The interest coverage ratio measures a company's ability to cover its interest payments on outstanding debt. A ratio greater than 2 is generally considered healthy as it indicates the company can meet its interest obligations comfortably.
    5. Quick Ratio: 0.28
      • Quick Ratio: The quick ratio assesses a company's ability to cover its short-term liabilities with its most liquid assets. A ratio higher than 1 suggests the company can meet its short-term obligations without relying heavily on inventory.
    6. Stock P/E: 9.15 (Industry average Stock P/E: 17.16)
      • Stock P/E (Price-to-Earnings) Ratio: The P/E ratio compares a company's current share price to its earnings per share. A lower P/E ratio relative to industry peers or historical values may indicate that the stock is undervalued.
    7. Total Debt / Equity: 0.6
      • Total Debt / Equity: This ratio measures a company's financial leverage by comparing its total debt to its total equity. A lower ratio indicates lower financial risk and greater financial stability.
    The current analysis is available for review. It's important to conduct thorough research and consider consulting with financial professionals before making any investment decisions.
    Stock Rating:

About the Company - Qualitative Analysis

Bharat Petroleum Corporation Ltd. is a Public Limited Listed company incorporated on 03/11/1952 and has its registered office in the State of Maharashtra, India. Company’s Corporate Identification Number(CIN) is L23220MH1952GOI008931 and registration number is 008931. Currently Company is involved in the business activities of Manufacture of other petroleum (includes manufacture of petroleum jelly, micro-crystalline petroleum wax, slack wax, ozokerite, lignite wax, petroleum coke, petroleum bitumen and other residues of petroleum oils or of oils obtained from bituminous minerals). Company’s Total Operating Revenue is Rs. 362276.77 Cr. and Equity Capital is Rs. 2129.45 Cr. for the Year ended 31/03/2022.
INDUSTRYADDRESSCONTACT
RefineriesBharat Bhavan, P. B. No. 688, Mumbai Maharashtra 400001info@bharatpetroleum.in
http://www.bharatpetroleum.in
Management
NamePosition Held
Mr. G KrishnakumarChairman & Managing Director
Mr. Sukhmal Kumar JainDirector - Marketing
Mr. Rajkumar DubeyDirector - Human Resources
Mr. Sanjay KhannaDirector - Refineries
Mr. Kamini Chauhan RatanGovernment Nominee Director
Dr.(Mrs.) Aiswarya BiswalIndependent Director
Prof. (Dr) Bhagwati Prasad SaraswatIndependent Director
Mr. Pradeep V AgrawalIndependent Director
Mr. Ghanshyam SherIndependent Director
Mr. Gopal Krishna AgarwalIndependent Director
Mr. A P M Mohammed HanishGovernment Nominee Director
Dr. Sushma AgarwalIndependent Director
Mr. Vetsa Ramakrishna GuptaDirector - Finance & CFO

FAQ

What is the latest intrinsic value of Bharat Petroleum Corporation Ltd?

The latest intrinsic value of Bharat Petroleum Corporation Ltd as on 21 November 2024 is ₹733.20, which is 160.00% higher than the current market price of ₹282.00.

What is the Market Cap of Bharat Petroleum Corporation Ltd?

The Market Cap of Bharat Petroleum Corporation Ltd is 1,22,498 Cr..

What is the current Stock Price of Bharat Petroleum Corporation Ltd as on 21 November 2024?

The current stock price of Bharat Petroleum Corporation Ltd as on 21 November 2024 is ₹282.

What is the High / Low of Bharat Petroleum Corporation Ltd stocks in FY 2024?

In FY 2024, the High / Low of Bharat Petroleum Corporation Ltd stocks is 376/200.

What is the Stock P/E of Bharat Petroleum Corporation Ltd?

The Stock P/E of Bharat Petroleum Corporation Ltd is 9.15.

What is the Book Value of Bharat Petroleum Corporation Ltd?

The Book Value of Bharat Petroleum Corporation Ltd is 178.

What is the Dividend Yield of Bharat Petroleum Corporation Ltd?

The Dividend Yield of Bharat Petroleum Corporation Ltd is 7.44 %.

What is the ROCE of Bharat Petroleum Corporation Ltd?

The ROCE of Bharat Petroleum Corporation Ltd is 32.1 %.

What is the ROE of Bharat Petroleum Corporation Ltd?

The ROE of Bharat Petroleum Corporation Ltd is 41.9 %.

What is the Face Value of Bharat Petroleum Corporation Ltd?

The Face Value of Bharat Petroleum Corporation Ltd is 10.0.

About the Author

Author Avatar
Getaka

Getaka, CFA, a financial analyst with 15 years of experience in the industry. Getaka holds an MBA degree and the Chartered Financial Analyst designation, demonstrating his profound understanding of financial analysis and investment management. Throughout his career, he has conducted numerous financial analyses and due diligence processes for companies in the industry, and has a strong track record of identifying key trends and opportunities. He leverages his expertise to deliver a thorough financial analysis of a company, encompassing its financial performance, key ratios, future prospects, and risks. Getaka is committed to providing accurate, reliable, and trustworthy information to help readers make informed decisions about their finances and investments.

Disclaimer: This article is for informational purposes only and should not be construed as financial advice. The author is not a SEBI registered financial advisor and does not have any vested interest in Bharat Petroleum Corporation Ltd. Investors are advised to conduct their own due diligence and consult with a financial professional before making any investment decisions. The information provided in this article is based on publicly available data and the author's analysis, but it may not be comprehensive or up-to-date. The author and getaka.co.in are not responsible for any errors or omissions in the content. This article is not intended to promote any particular investment strategy or recommendation, and readers should consult with their own financial advisors before making any investment decisions. Data Source: NSE