Synopsis:
A Large-cap PSU stock in the focus after LIC Sold stake in the company through a deal.
A Large-cap company that is engaged in the business of refining crude oil and marketing of petroleum products, is in the spotlight today after Life Insurance Corporation sold 2 percent stake in the company.
With a market capitalization of Rs. 1,58,767.61 crore, Bharat Petroleum Corporation Ltd is trading at Rs. 366, up by 0.10 percent from its previous close of Rs. 365.65 per equity share. The shares touched an intraday high of Rs. 368.15 in today’s trading session.
What’s the deal?
According to the sources, Life Insurance Corporation has divested a 2 percent stake in Bharat Petroleum Corporation Ltd., resulting in a notable reduction in its overall shareholding. LIC’s stake, which previously stood at 8.75 percent, has now come down to 6.75 percent. This stake sale reflects a strategic move by the insurer as part of its portfolio management.
About the company
Bharat Petroleum Corporation Limited, incorporated in 1952 and based in Mumbai, is one of the major integrated energy companies in India. It operates in two main segments which are Downstream Petroleum and Exploration and Production of Hydrocarbons. The company refines crude oil and markets a wide range of petroleum products in India and in international markets. Its retail fuel stations provide petrol, diesel, blended fuels, compressed natural gas, liquefied natural gas, auto gas, lubricants, electric vehicle charging, convenience stores, restaurants, and essential services such as ATM, insurance, money transfer, and vehicle care facilities.
BPCL offers cooking gas under the Bharatgas brand and lubricants under the MAK brand and also supplies jet fuel and aviation related services. The company serves industrial consumers with fuels, white oils, bitumen, specialty bitumen, pet coke, sulphur, solvents, petrochemicals, bunkering services, and feedstock for the petrochemical sector. It operates pipelines for the transport of petroleum products and is active in city gas distribution. BPCL also exports products such as naphtha and fuel oils.
It is trading at a price-to-earnings (P/E) ratio of 7.37x, which is lower than the industry average of 13.5x. A return on equity (ROE) of about 17.3 percent and a return on capital employed (ROCE) of about 16.2 percent and debt to equity at 0.56, demonstrate the company’s financial position.
Bharat Petroleum reported stable performance with Q2 FY26 revenue at Rs. 1,04,946 crore, which reflects a year on year growth of about 2.10 percent compared with Rs. 1,02,785 crore in Q2 FY25, although it declined by around 6.75 percent on a quarter on quarter basis from Rs. 1,12,551 crore in Q1 FY26.
Profit rose sharply to Rs. 6,191 crore, marking a strong year on year jump of nearly 169.53 percent from Rs. 2,297 crore in the same quarter last year, but it declined by roughly 9.48 percent sequentially compared with Rs. 6,839 crore in Q1 FY26.
Written by Akshay Sanghavi
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