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Bharat Petroleum Corporation Ltd logo

Bharat Petroleum Corporation Ltd

NSE: BPCL BSE: 500547

373.45

(1.84)%

Tue, 03 Feb 2026, 05:20 pm

Analysis

dividend

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Pros

  • Dividends after 3 years are expected to be well covered by earnings (2.4x coverage).
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Cons

  • Unable to calculate sustainability of dividends as Bharat Petroleum has not reported any payouts.
  • Unable to evaluate Bharat Petroleum's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.
  • Unable to evaluate Bharat Petroleum's dividend against the top 25% market benchmark as the company has not reported any payouts.

future

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Pros

  • Bharat Petroleum's earnings are expected to grow significantly at over 20% yearly.
  • Bharat Petroleum's earnings growth is expected to exceed the India market average.
  • Bharat Petroleum's earnings growth is expected to exceed the low risk savings rate of 7.2%.
  • Bharat Petroleum's earnings are expected to exceed the low risk growth rate next year.
  • Bharat Petroleum's earnings are expected to increase by more than the low risk growth rate in 3 years time.
  • Bharat Petroleum's net income is expected to increase by more than 50% in 2 years time.
  • Bharat Petroleum is expected to efficiently use shareholders’ funds in the future (Return on Equity greater than 20%).
  • Performance (ROE) is expected to be above the current IN Oil and Gas industry average.
  • An improvement in Bharat Petroleum's performance (ROE) is expected over the next 3 years.
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Cons

  • Cash flow for Bharat Petroleum is expected to increase but not above the 50% threshold in 2 years time.
  • Bharat Petroleum's revenue is expected to decrease over the next 2 years.
  • Bharat Petroleum's revenue is expected to decrease over the next 1-3 years, this is not considered high growth.
  • Bharat Petroleum's revenues are expected to decrease over the next 1-3 years, this is below the India market average.

health

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Pros

  • Bharat Petroleum is profitable, therefore cash runway is not a concern.
  • Bharat Petroleum is profitable, therefore cash runway is not a concern.
  • Debt is well covered by operating cash flow (20.2%, greater than 20% of total debt).
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Cons

  • Bharat Petroleum's short term (1 year) commitments are greater than its holdings of cash and other short term assets.
  • Debt is not covered by short term assets, assets are 0.7x debt.
  • Bharat Petroleum's long term commitments exceed its cash and other short term assets.
  • The level of debt compared to net worth has increased over the past 5 years (106.7% vs 159.8% today).
  • Interest payments on debt are not well covered by earnings (EBIT is 2.3x annual interest expense, ideally 3x coverage).
  • Bharat Petroleum's level of debt (159.8%) compared to net worth is high (greater than 40%).
  • High level of physical assets or inventory.

management

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Pros

  • D.'s remuneration is lower than average for companies of similar size in India.
  • The tenure for the Bharat Petroleum management team is about average.
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Cons

  • The average tenure for the Bharat Petroleum board of directors is less than 3 years, this suggests a new board.
  • D.'s compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.

misc

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Pros

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    Cons

    • Bharat Petroleum has significant price volatility in the past 3 months.

    past

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    Pros

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      Cons

      • Bharat Petroleum's 1-year earnings growth is negative, it can't be compared to the 5-year average.
      • Bharat Petroleum's year on year earnings growth rate was negative over the past 5 years and the most recent earnings are below average.
      • Bharat Petroleum used its assets less efficiently than the IN Oil and Gas industry average last year based on Return on Assets.
      • Bharat Petroleum's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
      • Bharat Petroleum has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
      • Bharat Petroleum's 1-year earnings growth is negative, it can't be compared to the IN Oil and Gas industry average.

      value

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      Pros

      • Bharat Petroleum is good value based on expected growth next year.
      • BPCL outperformed the Market in India which returned -14.5% over the past year.
      • NSEI:BPCL is up 13.1% outperforming the Oil and Gas industry which returned 10.5% over the past month.
      • NSEI:BPCL is up 13.1% outperforming the market in India which returned 8% over the past month.
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      Cons

      • Bharat Petroleum's share price is above the future cash flow value, it's not available at a moderate discount (< 20%).
      • Bharat Petroleum's share price is above the future cash flow value, it's not available at a substantial discount (< 40%).
      • Bharat Petroleum is overvalued based on assets compared to the IN Oil and Gas industry average.
      • Bharat Petroleum is overvalued based on earnings compared to the IN Oil and Gas industry average.
      • Bharat Petroleum is overvalued based on earnings compared to the India market.
      • BPCL underperformed the Oil and Gas industry which returned -4% over the past year.

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