The shares of Bharat Petroleum Corporation (BPCL) were trading higher after about 68.4 lakh shares changed hands through a block deal
The shares of Bharat Petroleum Corporation (BPCL) were trading higher after about 68.4 lakh shares changed hands through a block deal on BSE in trade Wednesday.
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“The Board of Directors of BPCL has approved the sale of up to 68,36,948 equity shares held by BPCL ESPS Trust, in accordance with the BPCL Employee Stock Purchase Scheme 2020 and Sebi (Share Based Employee Benefits and Sweat Equity) Regulations, 2021,” the company informed the the exchanges on February 13.
At 12:20 pm, the stock was quoting at Rs 614.15 on the NSE, up 5.09 per cent on the NSE. It has gained nearly 36 per cent so far this calendar year as crude oil prices remained under control, which translated into better marketing margins.
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Last month, BPCL reported a 73 per cent rise in net profit for the third quarter, helped by strong refining and marketing margins. The company’s standalone net profit rose to Rs 3,393 crore in the three months ended December 31 from Rs 1,960 crore a year earlier.
Its average gross refining margin was $13.3 per barrel for the December quarter, while revenue from operations was little changed at Rs 1.3 lakh crore and expenses fell 4.5 per cent.
Morgan Stanley believes that state-owned OMCs like HPCL, BPCL, and Indian Oil have more room to rally as India remains the fastest-growing market globally for fuel demand with internal combustion engine vehicle demand also strong.
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It also said that hardware upgrades by refiners before Covid-19 are now being reflected in earnings as the energy market becomes less volatile. “Stocks of oil refining and marketing companies are seeing multiples re-rate as investors reassess long-term growth prospects,” said the brokerage in its report.
Morgan Stanley expects both earning upgrades as well as re-rating in these stocks with multiples rising to levels seen in 2014-2017.
Block deals, which involve the sale or purchase of a significant number of shares in a single transaction, are often employed by companies seeking to raise capital or streamline their shareholding structure.
