BPCL share price target 2022, 2023, 2024, 2025, and 2030: In this article, you will learn about BPCL share price target 2022, 2023, 2024, 2025, and 2030, along with the fundamentals and financials of the company.
For every investor, it is important to know about the company in which they are investing, to get the confidence to hold the stock for the long term. To make it clear to you, in this article we have mentioned BPCL share price target 2022, 2023, 2024, 2025, and 2030, along with the fundamentals of the company.
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BPCL: Company Profile
The Corporation is engaged in the business of refining crude oil and marketing petroleum products. It has refineries in Mumbai and Kochi, LPG bottling plants, and Lube blending plants at various locations. The Corporation’s marketing infrastructure includes a vast network of Installations, Depots, Retail Outlets, Aviation Fuelling Stations, and LPG distributors.
Fuels & Services: offers world-class Fuel Stations (Petrol Pumps) across the country, selling Petrol, Diesel, Automotive LPG, and CNG.
Bharatgas: Bharatgas comes from the house of Bharat Petroleum, a Fortune 500 company and a major player in refining and marketing petroleum products in India. Bharatgas fuels millions of homes and has brought many innovative products and customer-centric offerings to the customers.
MAK Lubricants: Bharat Petroleum – reign eminently as a trusted brand in lubricants and greases in India and international markets.
Aviation Services: Bharat Petroleum Corporation Limited is a pioneer in providing aviation fuel services in India.
Oil Refineries: Bharat Petroleum operates several oil refineries in India.
Gas: Natural gas is seen as a great energy source of the 21st century, and to provide energy security to customers, BPCL diversified into the gas business. The emerging gas demand in the country provides BPCL with an opportunity to expand its existing portfolio of energy supply.
Industrial & Commercial: To cater to the Industries’ needs for fuels and other petrochemicals, BPCL Industrial and Commercial Fuel Services Business Unit, commonly known as I&C SBU were formed.
Share Holding Pattern
BPCL Share Price Target 2022
The year 2020-21 was like no other. The oil & gas sector across the world has been hit very hard by the COVID-19 pandemic. As oil prices crashed and demand for transportation & commercial fuels declined, while that for medical and personal care products soared, parts of the fuel and petrochemical industry found new opportunities while others struggled. With optimized crude oil mix and maximization of unit intakes, Refineries demonstrated their constant endeavor to maximize value-added products and met market demand. With margins under pressure, reliability improvement, operational availability, and increasing energy efficiency remained the top objectives for Refiners along with cost optimization.
BPCL achieved a weighted average Gross Refiners Margin (GRM) for the year 2020-21 at USD 4.06 per barrel (5,861 crores) as compared to USD 2.5 per barrel ( 4,182 crores) realized in the year 2019-20. While Refineries were facing cyclical challenges, the pandemic situation has perpetrated many changes which are both structural and disruptive in nature. However, with concerted efforts, BPCL achieved a refinery throughput of 26.4 MMT for 2020-21 by continuously analyzing crude procurement and market demand.
Further, utilizing the low demand periods, BPCL Refineries effectively managed the digitally-enabled turnaround of process units and catalyst change in the secondary processing units. As a strong hedge against future uncertainties around fuels, BPCL successfully commissioned an Acrylic acid and Oxo-alcohol unit under the Propylene Derivatives Petrochemicals Project (PDPP) at Kochi Refinery, which is predominantly being imported now. With the commissioning of the PDPP complex, BPCL joins the world leaders in the niche petrochemical segment.
During the year 2020-21, BPCL achieved an important milestone in strengthening its import infrastructure by the construction of JD-5, at Marine Oil Terminal (MOT) at Jawahar Dweep, jointly owned by Mumbai Port Trust (MbPT) and Hindustan Petroleum Corporation Ltd (HPCL) and operated by MbPT. JD-5 has been commissioned in January 2021 and permits the berthing of a fully-loaded Suez-max vessel, thus significantly controlling shipping freight costs. By considering all the factors, BPCL share price target for 2022 is Rs 410.
|BPCL share price target 2022|
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BPCL Share Price Target 2023
The COVID 19 pandemic has impacted the energy sector in ways that may have far-reaching and long-lasting implications. Even as the global energy demand witnessed one of the biggest declines in history, it also facilitated a larger, welcome decline in greenhouse gas emissions, allaying immediate concerns about the usage of fossil fuels. The growing climatic concerns over time have seen the energy basket constitution changing in favor of renewables and alternate fuels, however, the global efforts in creating a sustainable energy system have been confounded by a confluence of various intricate factors caused by the pandemic.
While the emergence of a new normal, changes in consumer and business behavior, and rapid technological developments are likely to accelerate the march towards a lower carbon future; subdued economic activity suggests a low emission period and financial constraints faced by economies in supporting clean fuel subsidies propose an extended run for the fossil fuels, particularly Oil and Gas. Eventually, the developments in the energy sector will be determined by the trajectory of the pandemic, the changes in the global socio-economic structure, and the energy policy decisions of the nations.
The global energy demand saw a contraction by a whopping 4% during 2020, the largest decline since World War II and the largest absolute decline ever. Oil suffered the maximum decline of around 8.8% (estimated 8.5 million barrels per day) – the largest ever in both absolute and relative terms, as against a growth of 0.8% in 2019, mainly on account of restrictions on mobility.
Coal demand has been in a structural decline and fell by a huge 4% in 2020 as against 1.7% de-growth in 2019, driven by lower demand for electricity owing to disruption in commercial activity coupled with enhanced use of gas due to its low prices and increasing output from renewables. Lower prices and increased adoption in Asia and the Middle East enabled Gas to be more resilient than oil and coal in 2020, with demand falling only by 1.9%.
However, it was Renewables that bucked the trend and posted a growth of 3% largely driven by growth in solar and wind power (23% and 12% year on year respectively), as new capacities came on stream and commanded priority usage in many markets. The electricity generation from nuclear power also declined by around 4% in the year 2020 mainly due to a decline in electricity demand as well as shutdowns of the power plants either for maintenance temporarily or permanently.
With expectations of a stronger recovery in economic activity assuming that the pandemic situation is controlled in time, the demand for energy is likely to rebound strongly in 2021, pushing it back to pre-COVID levels or even more. However, this is subject to uncertainties. New waves of the pandemic are prolonging the restrictions on movement and economic activity indicating a subdued global energy demand for a longer time than expected, whereas, stimulus packages and vaccination drives present a silver lining.
Also, while the emissions are likely to go up, they are expected to remain short of the pre-crisis levels. Nonetheless, structural shifts in the energy sector are expected to continue in favor of low carbon solutions, impacting the demand for fossil fuels. BPCL share price target for 2023 is Rs 460.
|BPCL share price target 2023|
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BPCL Share Price Target 2024
The disruption in economic activity had the international product cracks register a sharp decline in the initial period of the year 2020-21 which improved subsequently with the resumption of inactivity and restoration of demand-supply balance. The average cracks of MS for the year stood at around USD 3 per barrel as against USD 6.7 per barrel in the previous year, while HSD cracks averaged at USD 5.7 per barrel as against USD 14.1 per barrel in the previous year registering a decline of 55 % and 60%, respectively.
The Jet Fuel/Kero cracks declined sharply owing to severe interruption in air travel and averaged at USD 1.2 per barrel as against USD 12.6 per barrel in the previous year, a massive 90% decline. However, Naphtha cracks were better at negative USD 0.9 per barrel as against negative USD 5.5 per barrel in the previous year owing to buoyant demand from the petrochemicals sector.
Although the oil and gas industry has seen many ups and downs in the past, the present crisis appears unparalleled and seems to have altered many dimensions – whether it is consumer demand and behavior patterns, the pace of transition, the economics of the industry, or the contours of the oil market dominance. While the pandemic has painted a challenging outlook for the industry and prompted investment cuts and capacity moderations, the receding Capex cycle may pose a risk of a future wedge if demand turns out to be robust post COVID.
However, with uncertainty galore, it is difficult to crystal gaze and better to await the restoration of stability and emergence of definitive trends in times to come. The accelerating rollout of vaccinations and extensive fiscal responses by many economies have bolstered the outlook for high economic growth and increased energy demand in the near future. BPCL share price target for 2024 is Rs 510.
|BPCL share price target 2024|
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BPCL Share Price Target 2025
Energy Transition poses both – a threat as well as an opportunity for the Oil and Gas Industry. With the world moving decisively towards a low carbon future, a decline in the demand for oil is imminent, sooner or later, impacting the prospects and profitability of the industry. However, the current pandemic situation is talked about delaying the peak of oil due to factors like interim relief in climatic concerns upon reduction in CO2 emissions, a subdued oil price regime, financial constraints faced by the governments hindering subsidy support for energy transition, and a strong demand expected from the petrochemicals sector.
Besides, rising incomes in emerging markets and developing economies create strong underlying demand for mobility, offsetting reductions in oil use elsewhere. India is likely to experience strong demand for oil longer than the developed world, however, keeping pace with the global trends, India too has set ambitious targets in enhancing the capacity and usage of alternate fuels like gas, biofuels, nuclear energy, electrification of mobility, and renewable sources of energy, particularly solar and wind.
The alternate fuels and renewables space present significant diversification opportunities for the domestic oil companies which need to keenly watch the developments and plan their strategies ahead of the curve in order to become integrated energy players. India’s energy strategy envisages a crucial role for biofuels in the energy basket.
The Government of India has proposed a higher blending of ethanol in petrol & diesel and introduced multiple initiatives to increase indigenous production of biofuels in order to address environmental concerns, achieve import substitution, and reduce carbon footprint. Oil Marketing companies have been supporting the initiative wholeheartedly and are committed to stepping up towards biofuels. However, sparse feedstock availability, weak supply chains, underdeveloped technology particularly for second-generation biofuels, higher production costs, and noncompetitiveness with oil prices are key challenges in ensuring the feasibility and sustainability of biofuels in India.
Natural Gas offers a cleaner option than oil and coal and is the most popular alternative fuel source. India is going full steam, in its commitment to becoming a gas-based economy and is making requisite investments in the creation of infrastructures like pipeline networks, import capacities, regasification terminals, LNG/L-CNG/CNG stations, and City Gas Distribution networks to meet growing gas demand in the country.
While the country has made certain progress, swift expansion of gas infrastructure, provision of affordable supply & incentivization of switchover to gas shall be the key to unlocking the gas demand in India. Oil companies are best placed to leverage this opportunity and enhance their gas footprint through organic and inorganic routes. BPCL share price target for 2025 is Rs 580.
|BPCL share price target 2025|
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BPCL Share Price Target 2030
India being an import-dependent country (around 85% of crude oil requirement is imported), the subdued crude oil price regime during 2020-21 augured well for the Indian economy, enabling effective management of the balance of payment situation and monetary and fiscal position. However, the pandemic-induced shutdowns and disruption in economic activity caused a significant decline in the demand for petroleum products with the consumption dropping to 194.6 MMT during the year 2020-21 as against 214.1 MMT in the previous year, a reduction of 9.1%. Likewise, the consumption of natural gas also declined around 5.5% over the previous year.
The sharp reduction in international crude oil prices coupled with the decline in crude oil imports, partially offset by the depreciation in INR against the USD, ensured a reduction in crude oil import bill to USD 62.7 billion during the year 2020 21 as against USD 101.4 billion in the previous year, a staggering 38% decline.
While, the country imported around 198.1 MMT of crude oil during the year, as against 227.0 MMT in the previous year, the price of the Indian basket of crude oil averaged at a significant low of around USD 45 per barrel as against USD 61 per barrel in the previous year, registering a decline of around 26%. However, the Indian Rupee averaged at INR 74.21 per USD in year 2020-21 as against INR 70.89 per USD in the previous year, a depreciation of 4.7%.
Over the years, India has emerged as a refining hub and a net exporter of petroleum products by virtue of significant investments made in capacity augmentation and up-gradation of refineries. The country’s refining capacity stood at 249.9 MMT as of 01 April 2021, with 65% of the capacity being held by PSU refiners and their group companies. While the crude processing has been surpassing the installed capacity for the past many years, the pandemic-related disruption during 2020-21 has restricted the refinery capacity utilization to 88.8% as the country processed 221.8 MMT of crude during the year as against 254.4 MMT in the previous year. The country processed 72.8% high Sulphur crude during the year.
With its vision set towards becoming a Gas based economy, India has taken definitive steps in the creation of infrastructure and proliferation and promotion of gas as a cleaner alternative. Significant work is being done in the direction of “One Nation, One Gas Grid”; setting up of LNG/CNG stations, pipelines, import, and regasification terminals; and rapid expansion of the City Gas Distribution network across the country. The increasing adoption of natural gas and increase in its consumption over the years bears testimony to the massive efforts gone in this direction.
Indian oil and gas sector has witnessed multiple reforms and developmental initiatives in the past few years which have been bolstering its position, expanding its reach and extent, enhancing its competitiveness, fostering its greener drive, and making it future-ready in fueling the growth of the nation. The country is not only progressing well towards realizing its Energy Vision but also creating newer benchmarks and adopting higher targets while pursuing cleaner energy objectives and diversifying the energy sources. BPCL share price target for 2030 is Rs 1,440.
|BPCL share price target 2030|
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BPCL Share Price Target 2022, 2023, 2024, 2025, and 2030
|Year||Share Price Target|
|BPCL share price target 2022||Rs 410|
|BPCL share price target 2023||Rs 460|
|BPCL share price target 2024||Rs 510|
|BPCL share price target 2025||Rs 580|
|BPCL share price target 2030||Rs 1,440|
Frequently Asked Questions
What is the future of BPCL?
BPCL share price target for 2022 is Rs 410, BPCL share price target for 2023 is Rs 460, BPCL share price target for 2024 is Rs 510, BPCL share price target for 2025 is Rs 580, and BPCL share price target for 2030 is Rs 1,440.
Is it good to invest in BPCL?
Yes, you can invest in BPCL. The company has shown a good profit growth of 33% for the past 3 years, has significantly decreased its debt by 15,500 crores, and the company has been maintaining a healthy ROE of 23% over the past 3 years.