Share of Bharat Petroleum Corporation Limited is currently trading at around Rs.260/- Existing as well as prospective Investors of the Company are asking the BPCL Share Price Target for medium and long term. People are coming to Share Market Experts and Investment Consultants and are asking for the BPCL Share Price Target for 2025,2030,2035 & 2040. In this article, we will discuss and analyse the present business and financial fundamentals of the company and also talk about the future business prospects of the company so that a fair target of the share price for 2025, 2030,2035 and 2040 can be fixed.
Discussion & Analysis of present Business & Financial performance with future business prospects of Bharat Petroleum Corporation Limited:
Bharat Petroleum Corporation Limited (BPCL), a leading state-owned oil and gas company in India, has been navigating a dynamic energy landscape by focusing on both its core operations and strategic expansions into new energy sectors.
Current Business Performance
In the third quarter ending December 31, 2024, BPCL reported a net profit of ₹46.49 billion, marking a 37% increase from the previous year. However, this figure fell short of analysts’ expectations, primarily due to reduced marketing margins and losses in the liquefied petroleum gas (LPG) segment. The company’s average gross refining margin for the April-December period declined to $5.95 per barrel from $14.72 per barrel in the previous year. Operating income also saw a 2% decrease, amounting to ₹1.28 trillion, influenced by a ₹72.29 billion impact to cover the gap between market prices and subsidized rates of LPG.
Despite these challenges, BPCL maintained robust operational performance, operating its three refineries at an average capacity utilization of 107% during the quarter, even amidst maintenance shutdowns.
The company also demonstrated adaptability in its crude sourcing strategy. Facing reduced Russian crude oil supplies, BPCL compensated by increasing purchases from Middle Eastern sources and exploring alternatives like U.S. West Texas Intermediate (WTI) crude. This diversification aligns with India’s broader goal to boost energy imports from the U.S., aiming to increase from approximately $15 billion to $25 billion.
Future Business Prospects
BPCL has outlined an ambitious investment plan of ₹1.7 trillion over the next five years to enhance its core refining and marketing operations and to venture into petrochemicals and green energy. A significant component of this strategy is the proposed $11 billion refinery and petrochemical project in Andhra Pradesh, which will include a refinery with a capacity of at least 9 million metric tons per year and an ethylene cracker unit.
Additionally, BPCL is expanding its Bina refinery’s capacity to 300,000 barrels per day by 2026 and is constructing new petrochemical facilities in Kochi and Bina, scheduled for completion by 2027 and 2028, respectively.
In alignment with global energy transition trends, BPCL aims to achieve net-zero carbon emissions by 2040. The company plans to invest ₹1 trillion in renewable energy, green hydrogen, biogas, and carbon capture technologies. Targets include establishing 2 gigawatts (GW) of renewable energy capacity by 2025 and expanding to 10 GW by 2035. BPCL is also actively developing compressed biogas plants using municipal solid waste to produce gas suitable for use as compressed natural gas (CNG) in vehicles.
Furthermore, BPCL is investing $121 million to develop the Nunukan oil and gas block in Indonesia, reflecting its commitment to expanding its upstream portfolio. The company is also exploring joint ventures for refinery projects in Uttar Pradesh and is committed to pursuing renewable energy projects to meet its clean energy targets.
In summary, BPCL is proactively addressing current market challenges while strategically investing in future growth areas. The company’s comprehensive approach encompasses expanding refining and petrochemical capacities, diversifying energy sources, and committing to sustainable energy solutions, positioning it to meet India’s evolving energy demands and contribute to global sustainability goals.
SHARE PRICE TARGETS:
BPCL Share Price Target 2025
Based on the above discussion and analysis, the share price of Bharat Petroleum Corporation Ltd may touch the level of around Rs.285-300 in 2025.
BPCL Share Price Target 2030
Based on the above discussion and analysis, the share price of Bharat Petroleum Corporation Ltd may touch the level of around Rs.475-500 in 2030.
BPCL Share Price Target 2035
Based on the above discussion and analysis, the share price of Bharat Petroleum Corporation Ltd may touch the level of around Rs.800-900 in 2035.
BPCL Share Price Target 2040
Based on the above discussion and analysis, the share price of Bharat Petroleum Corporation Ltd may touch the level of around Rs.1800-2000 in 2040.
Disclaimer: Investments in Capital Market/Share Prices are subject to market fluctuations and are dependent on several factors. These predictions are based on the current market conditions and the future market expectations. Investors are advised to take into consideration all these factors before making any investment in Capital Market. This article should not be treated as Investment advisory and is for general Guidance & Educational purpose only. We keep revising our share price targets based on the latest information available with us. Please keep visiting our website regularly to keep yourself updated. MoneyInsight does not offer investment advice and does not encourage any action based on its content.
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