Pumping Up Profits: How BPCL Yielded 6250% Returns

Published by Trinkerr Academy on

If you had invested ₹1 lakh in BPCL in September 2002, you could have had ₹1.08 crore today! This multibagger yielded ₹62,50,838 in profits and ₹46,05,755 in dividends with 62.5x growth in 20 years. Here’s a quick look at the company.

⛽ Stock Name: Bharat Petroleum Corporation Ltd.

💫 About The Company
BPCL is a Fortune 500 company which is into oil refining, exploration and marketing. It has participating interest in 18 blocks, in India and overseas. The conglomerate has a stake in 2 Russian entities, holding the licence to 4 producing blocks. It is India’s ‘best performing’ Maharatna public sector company.

🔗 Presence Across The Value Chain
⛽ Retail Petroleum: Owns 82 retail depots and operates 20,000 retail outlets across India. It has a market share of 26% in the domestic petroleum market.

🍳 LPG: Owns and operates 54 bottling plants and has over 6,200 distributors in India. BPCL has a market share of 27%.

🏭 Industrial Sector: Has more than 8,000 clients and provides them with a reliable supply of industrial and commercial petroleum products.

✈️ Aviation: Has 56 aviation service stations across airports in India and a 21% market share in Aviation Turbine Fuel (ATF) in the domestic market.

🛢️ Lubricants: Sells more than 400 grades of lubricant products through its brand, MAK Lubricants. Has a market share of 25%, with a customer base of over 18,000.

⚡ Gas: Has a base of more than 55 major LNG customers. It undertakes this business through its wholly owned subsidiary—Bharat Gas Resources Ltd.—which has business interests in 50 geographical areas.

🔑 Key Developments
BPCL, on a consolidated basis, plans to spend around ₹10,000 crores in FY23 on the following projects:
⛽ ₹5,200 crores on marketing
⛽ ₹2,100 crores on refinery and Petchem project in Kerala
⛽ ₹1,400 crores on exploration activities
⛽ ₹800 crores on city gas distribution
⛽ ₹500 crores on other projects including pipeline

💰 Stock Value
💵 BPCL had 3 bonus issues :
🗓️ On 13th July 2012 in the ratio of 1:1 (3418 x 2)
🗓️ On 13th July 2016 in the ratio of 1:1 (6836 x 2)
🗓️ On 13th July 2017 in the ratio of 1:2 (13672 x 1.5)

The effective number of shares went from 3,418 to 20,508

💰 Stock Value
On October 01, 2002, the shares of the company were trading at ₹29.25, while they were priced at ₹304.80 as of September 30, 2022.


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