3 August 2016
Update | Sector: Oil & Gas
BPCL
Buy
BSE SENSEX
27,698
S&P CNX
8,545
CMP: INR573
TP: INR685 (+20%)
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Announces new initiatives to boost non-fuel revenue
Benefits to accrue in the long term; likely volume boost a near-term benefit
We attended the BPCL analyst meet, wherein management discussed its non-fuel
retail initiatives. Key takeaways are as follows.
Bloomberg
Equity Shares (m)
M.Cap.(INR b)/(USD b)
52-Week Range (INR)
1, 6, 12 Rel. Per (%)
Avg Val,( INR m)
Free float (%)
BPCL IN
1,446.2
828.7 / 12.4
604/366
3/24/28
1,339
45.1
Bharat Petroleum Corporation (BPCL) has embarked upon initiatives to boost its non-
fuel revenues against the backdrop of rapidly changing share of energy sources,
deregulation of the sector and evolving customer trends.
While it would be too early to discuss any specific financial numbers, we believe
BPCL should benefit in the near term from its improved brand value and higher
volumes due to increasing footfalls at the target outlets.
BPCL management also mentioned that new players would not be able to justify
investments at the current levels of auto fuel marketing margins, which are well
below international peers. We believe this strengthens the case for increasing
marketing margins to justify fair returns.
Financials & Valuations (INR b)
Y/E Mar
2016 2017E 2018E
Net Sales
1,884.5 2,107.2 2,473.7
EBITDA
142.1
147.8
167.6
PAT
79.8
84.9
95.3
EPS (INR)
55.2
58.7
65.9
Gr. (%)
66.1
6.4
12.2
BV/Sh (INR)
191.2
228.9
271.4
RoE (%)
31.8
28.0
26.3
RoCE (%)
18.1
16.1
16.0
P/E (x)
10.4
9.7
8.7
P/BV (x)
3.0
2.5
2.1
Serious efforts to boost non-fuel revenues; will also strengthen core business
BPCL has appointed Boston Consultancy Group (BCG) to identify best
international practices in non-fuel retail and to help in finalizing its own foray.
BPCL has its non-fuel venture like In&Out convenience stores, but its share in
earnings is <1%. The renewed non-fuel foray “Project Nischay” announced on
3-August covers a broad range of businesses/services with high reliance on
new-age technology, which should facilitate non-fuel offering beyond the
physical marketplace.
While BPCL studied more than 100 business ideas, it finalized four based on
parameters like competence, strength and partner capability.
Non-fuel earnings account for ~30% of revenue in developed countries versus
almost negligible in India. Management indicated that it will be too early to
give any target revenues from this initiative. Nevertheless, the core business
could see a boost as the pilot project locations witnessed impressive footfalls
and led to 15-20% additional fuel volume sales.
Capitalizing on customer base via emerging technology solutions
BPCL has ~100m customer base (including 50m LPG customers), which offers it
an advantage over other service providers. It will spend INR1-1.5m per outlet
and plans to reach 200 outlets by March 2017.
While the revenue model and its share in the value chain of the non-retail
business will evolve over time, the indicative opportunity is 3-11% of gross
value for the e-commerce business and ~1% of financial transaction value.
Recently, BPCL bought a 21% stake in FINO PayTech Ltd (Payment Bank – has
received in-principle approval from the RBI) for INR2.5b, which will further
help it make inroads in providing financial services.
Harshad Borawake
(HarshadBorawake@MotilalOswal.com); +91 22 6129 1529
Rajat Agarwal
(Rajat.Agarwal@MotilalOswal.com); +91 22 6129 1557
Investors are advised to refer through important disclosures made at the last page of the Research Report.
Motilal Oswal research is available on www.motilaloswal.com/Institutional-Equities, Bloomberg, Thomson Reuters, Factset and S&P Capital.

BPCL
Project Nischay: Capturing opportunity in tourism, transport and through
rural/urban solutions
BPCL has identified four business areas: (1) Rural marketplace, (2) Integrated
fleet management, (3) Personal travel offering and (4) Urban household
solutions. While many of these initiatives are not new, provision of such services
under one roof through domain expertise will be the biggest advantage..
Rural market place:
BPCL will leverage its physical network (3,800 rural outlets),
brand and local relationships to offer financial services, assisted e-commerce,
agri advisory, and two-wheeler services, among others.
Integrated fleet management:
Truckers woes and fragmented road transport
industry are an opportunity to offer services (through its 6,575 highway outlets)
like freight exchange, vehicle maintenance, operations/drive management and
finance/insurance. Over the next five years, the target is to reach 15,000+ fleet
customers, ~1,000 retail outlets and have presence on top 20 national highways.
Personal travel offering:
To offer travel solutions by exploiting the rapidly
emerging trend of road trips in India. Plans to cover top-18 cities in five years
with such solutions.
Urban household solutions:
Will monetize its large customer base (50m LPG
customers; in all 100m) and provide one-stop, omni-channel shop for regular
household needs. It will announce a strategic partner soon.
Valuation and View
BPCL stands out among OMCs due to its superior RoE (~32% in FY16), implying
better capital allocation.
Post diesel deregulation in October 2014, earnings were boosted by
deleveraging and better operating margins. We expect the company to sustain
its core performance with likely higher marketing margins and capacity addition
at the Kochi refinery.
We value BPCL at 5.5x for refining and 7.5x for marketing to arrive at a fair value
of INR685, implying 20% upside. The stock trades at 9.7x/8.7x FY17E/FY18E EPS
of INR59/INR66 and 2.5x/2.1x FY17E/FY18E BV (adjusted for investments).
Maintain
Buy.
3 August 2016
2

BPCL
Exhibit 1: Multiple drivers for fuelling sustained consumption growth in India
Source: Company, MOSL
Exhibit 2: Out of 100 business ideas, BPCL has finalized four business forays as of now
Source: Company, MOSL
Exhibit 3: BPCL already has infrastructural and brand recall in place
Source: Company, MOSL
3 August 2016
3

BPCL
Exhibit 4: Fleet management solution to target financial, operational and personnel
needs
Source: Company, MOSL
Exhibit 5: BPCL targeting 15,000 owners over five years for fleet management solutions
Source: Company, MOSL
Exhibit 6: Personal travel offerings to result in 1% increase in fuel market share
Source: Company, MOSL
3 August 2016
4

BPCL
Exhibit 7: To leverage reach of LPG customers to provide a variety of offerings
Source: Company, MOSL
Exhibit 8: BPCL has 28% market share in gasoline sales in India
HPCL
0%
44%
1%
44%
5%
43%
5%
42%
4%
43%
BPCL
1%
45%
0%
46%
IOCL
0%
46%
Private
0%
45%
0%
45%
0%
45%
0.0% 1.6%
45%
43%
31%
25%
30%
25%
29%
24%
28%
25%
28%
24%
29%
25%
28%
26%
28%
26%
28%
26%
29%
26%
29%
26%
29%
27%
28%
27%
FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16
Source: Company, HPCL, IOC, MoPNG, MOSL
Exhibit 9: BPCL has 26% market share in diesel sales in India
0%
55%
4%
53%
9%
51%
5%
53%
HPCL BPCL IOCL Private
0%
0%
0%
1%
3%
53%
54%
55%
54%
53%
0%
52%
0%
50%
2.0%
49%
2.5%
48%
25%
20%
FY04
23%
19%
FY05
21%
18%
FY06
23%
19%
FY07
24%
20%
FY08
24%
21%
FY09
24%
21%
FY10
25%
21%
FY11
25%
22%
FY12
26%
22%
FY13
27%
23%
FY14
26%
23%
FY15
26%
24%
FY16
Source: Company, MOSL
3 August 2016
5

BPCL
Exhibit 10: BPCL’s average throughput per pump is higher than its peers
In KLPM
250
200
150
100
50
-
FY04
FY06
FY08
FY10
FY12
FY14
FY16
Source: Company, MOSL
187
171
167
165
Industry Average
HPCL
BPCL
IOCL
148
137
140
147
155
159
163
163
159
Exhibit 11: BPCL’s share in petroleum retail outlets stand at 24%
Retail outlets ('000)
24
22
22
37
3
18
8
8
FY08
HPCL
22
38
3
18
8
8
FY09
BPCL
22
39
3
19
9
9
FY10
IOCL
22
42
3
19
9
10
FY11
Private
23
45
3
21
10
11
FY12
Total
24
49
3
22
12
12
FY13
24
52
3
24
13
13
FY14
BPCL outlet share (%)
24
53
3
24
13
13
FY15
24
56
4
25
13
14
FY16
31
2
15
7
7
FY06
35
3
16
8
8
FY07
Source: Company, MOSL
Other key takeaways
On ongoing expansions
BPCL is increasing its Kochi refinery capacity (in mmt) from 9.5 to 15.5 (by
1QFY17) and Bina refinery (49% JV) from 6 to 8 in the interim and to 15 in the
medium term, thereby taking the group’s capacity from the current 30 to ~48.
Kochi refinery is currently under expansion and is expected to fully commission
by Oct-Nov 2016. Of the INR165b budgeted costs, INR105b has already been
spent.
Mumbai refinery is also being upgraded to comply with EURO IV fuel norms and
is expected to be Dec-17. Total budgeted capex was ~INR300b for Euro IV and
likely to be INR350b for Euro VI.
On future capex plan
BPCL management had earlier guided a total capex of INR125-130b in FY17
(INR113b in FY16) and ~INR100b in FY18.
Of total FY17 capex, INR60b is earmarked for Kochi refinery expansion, INR12.5b
for Mumbai refinery, INR10b for E&P (doesn’t include Mozambique) and
remaining is maintenance capex in marketing and refining.
3 August 2016
6

BPCL
Valuation and view
Ongoing reforms have the potential to transform OMCs into a structural
investment play in our view led by (a) higher earnings predictability and (b)
increase in profitability leading to higher RoE’s.
We believe OMCs economic moat is widening led by (1) scope for meaningful
increase in marketing margin and hence profitability, (2) slower ramp-up by
private marketers, (3) high volume growth aided by expected GDP boost and (4)
improving balance sheet with increasing cash flow.
Likely increase in diesel marketing margin:
The next big earnings jump for
OMC’s would come from likely higher marketing margin in Diesel. We believe
that OMC’s could at least earn additional marketing margin of INR0.5-1/ltr and
even if private players take market share as high as 15%, on a net basis OMC’s
will benefit. We model gross per liter diesel margin of INR1.6/2.0 in FY17/FY18.
Continued delay in Mozambique FID (Final Investment Decision) could
significantly postpone LNG development.
We value BPCL (on FY18E) at 5.5x for refining and 7.5x for marketing to arrive at
a fair value of INR685 implying 20% upside. The stock trades at 9.7x/8.7x
FY17E/FY18E EPS of INR59/INR66 and 2.5x/2.1x FY17E/FY18E BV (adjusted for
investments).
Maintain Buy.
FY10
47.5
69.6
27.7
2.4%
3.0
3.6
(0.5)
20.4
0.3%
1.3
1.2
12%
11.3
FY11
45.7
86.5
29.1
4.9%
4.5
5.2
(0.7)
21.8
6.6%
1.3
1.2
9%
11.3
FY12
47.9
114.5
31.1
7.0%
3.2
8.2
(5.1)
22.9
5.2%
1.3
1.2
0%
5.4
FY13
54.5
110.0
36.5
17.1%
5.0
7.7
(2.7)
23.2
1.2%
1.3
1.2
1%
13.0
FY14
60.6
107.8
37.0
1.5%
4.3
5.6
(1.3)
23.4
0.6%
1.8
1.2
1%
27.0
FY15
61.1
86.0
36.7
-1.0%
3.6
6.4
(2.8)
23.4
0.1%
2.5
2.1
3%
33.2
FY16
65.5
47.6
38.4
4.8%
6.6
7.5
(0.9)
24.1
3.1%
1.7
1.6
0%
55.2
FY17E
68.0
50.0
40.9
6.5%
6.3
6.3
0.0
25.3
4.9%
1.7
1.6
0%
58.7
FY18E
70.0
55.0
43.2
5.5%
7.0
7.0
0.0
29.1
14.9%
2.1
2.0
0%
65.9
Exhibit 12: BPCL – Key Assumptions
Exchange Rate (INR/USD)
Brent Crude (USD/bbl)
Market Sales (MMT)
YoY (%)
GRM (USD/bbl)
BPCL GRM
Reuters Singapore GRM
Prem/(disc) (USD/bbl)
Refinery Throughput (mmt)
YoY (%)
Marketing Margin (INR/ltr)
Gasoline
Diesel
FY09
45.8
84.8
27.1
5.1%
5.4
5.8
(0.3)
20.4
-3%
1.3
1.2
0%
4.4
Net subsidy sharing (%)
EPS (INR)
Source: Company, MOSL
Exhibit 13:
BPCL valuation summary
EV/EBITDA Valuation
FY18
EBITDA
76
59
5
Multiple
(x)
5.5
7.5
7.0
INRb INR/sh
421
291
446
308
33
899
42
857
134
23
622
29
593
93
685
573
20%
Investments
Oil India
Petronet LNG
Indraprastha
Gas
Treasury Shares
Bina refinery
E&P Value
Mozambique
Brazil (Wahoo)
Brazil (SEAL)
Total
INRb INR/sh
Details
4
3 Post 30% discount
19
13 Post 30% discount
Post 30% discount
13
9
54
37 Post 30% discount
EV/EBITDA 6x (30%
28
20disc)
15
0
-
134
11 BPCL has 10% stake
0 BPCL has 12.5% stake
-
Await reserve est.
93
Source: MOSL
Refining (SA)
Marketing & others
Pipeline
EV
Less: Net Debt (SA)
Equity Value
Investment value (incl. Bina)
Fair value
CMP
% upside/(downside)
3 August 2016
7

BPCL
Story in charts: Moving from downstream to integrated model
Exhibit 14: BPCL’s current earning largely from refining
& Marketing businesses (%)
Refining
3
6
3
4
67
1
3
56
1
2
58
Marketing
2
3
76
3
3
71
Pipelines
2
7
71
5
68
Others
3
6
60
26
4
55
34
-7
32
52
14
7
4
37
5.8
5.4
Exhibit 15: Model marginal improvement in GRM (USD/bbl)
Prem/(Disc) to Singapore
Singapore GRM
8.2 7.7
5.6
5.2
3.6
3.0
4.5
3.2
5.0
(2.7)
4.3
(1.3)
BPCL GRM (USD/bbl)
6.4
3.6
(2.8)
(0.9)
7.5
6.6
3.0
(3.3)
6.3
7.0
7.0
0.0
80
(0.3) (0.5) (0.7)
(5.1)
12
26
40
39
19
23
20
Source: Company, MOSL
Source: Company, MOSL
Exhibit 16: Expect profitability to improve led by lower
interest and higher marketing margin (INR b)
EBITDA (INRb)
PAT (INRb)
142
67
19
94
41
96
51
85
149
89
168
98
Exhibit 17: Return ratios to improve significantly (%)
RoE (%)
RoCE (%)
31.8
21.6 22.9
11.9 11.1
6.9
4.8
4.5
6.0
5.8
5.0
6.8
11.5
10.0 11.6
28.3 26.4
34
7
31
17
43
17
48
9
18.1 16.3 16.0
Source: Company, MOSL
Source: Company, MOSL
Exhibit 18: Silver lining led by E&P successes, current value at INR11/share
Country
Mozambique
Brazil
(Wahoo
Others)
Brazil (SEAL Basin)
&
Successful
wells
13
3
5
Reserves announced
45-70 tcf
150-200mmbbl (includes only
Wahoo discover)
Reserves not declared yet
Comments
We do not assign any value to the project due to continued FID
delays
We current do not assign any value to this block
We currently do not assign any value to this block
Source: Company, MOSL
3 August 2016
8

BPCL
BPCL: Story in charts
Exhibit 19: BPCL to benefit from lower interest
costs in coming years….
Interest Cost (INR b)
23
14
14
26
22
20
12
11
12
11
Exhibit 20: Refining capacity set to increase by 1.6x…..
Source: Company, MOSL
Source: Company, MOSL
Exhibit 21: Under-recoveries decline significantly, LPG now
under DBTL and to be shared fully by the govt.
Under
Diesel
recoveries in
INR b
1,033
52
773
176
156 73
282
461
191
52
143
523
174
353
93
Kerosene
1,610
1,385
284
780
205
200
278
819
399
296
915
LPG
1,399
465
306
628
723
366
Petrol
Total
Exhibit 22: Petroleum sales volume to witness
steady growth (mmt)
Marketing Sales (mmt)
Refinery Throughput (mmt)
37
39
41
27
28
29
31
33
34
20
20
22
23
23
23
23
24
25
115 90
0
115 90
0
0
FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17E
348
248
109
Source: Company, MOSL
Source: Company, MOSL
Exhibit 23: 1 Year forward P/E chart
Exhibit 24: 1 Year forward P/B chart
Source: Company, MOSL
Source: Company, MOSL
3 August 2016
9

BPCL
Financials and Valuations
Income Statement
Y/E Mar
Net Sales
Change (%)
EBITDA
EBITDA Margin (%)
Depreciation
EBIT
2011
1,536,450
24.1
42,612
2.8
18,914
23,699
12,468
17,252
0
28,483
11,062
38.8
1,071
16,350
16,350
0.2
2011
14,462
139,014
153,475
9,975
251,855
13,074
428,379
344,851
152,581
192,269
82,864
3,855
84,600
305,305
182,135
28,779
7,971
86,421
240,513
64,792
428,379
2012
2,121,396
38.1
48,127
2.3
24,108
24,018
22,591
14,567
0
15,994
7,482
46.8
705
7,808
7,808
-52.2
2012
14,462
144,337
158,799
10,351
301,531
16,778
487,459
416,676
174,350
242,326
45,342
7,556
78,906
404,006
210,971
52,010
13,263
127,761
290,677
113,329
487,459
2013
2,421,810
14.2
66,722
2.8
24,627
42,095
25,183
15,290
0
32,202
12,841
39.9
553
18,808
18,808
140.9
2013
14,462
153,294
167,755
10,766
328,604
16,059
523,184
437,803
198,173
239,630
74,633
7,584
74,698
399,112
199,567
43,551
28,498
127,497
272,473
126,639
523,184
2014
2,644,066
9.2
93,590
3.5
26,109
67,480
19,821
13,998
0
61,657
21,127
34.3
1,423
39,107
39,107
107.9
2014
14,462
179,801
194,263
11,603
327,985
12,511
546,362
490,974
222,858
268,115
93,717
7,684
69,853
448,233
231,695
45,437
23,113
147,988
341,241
106,992
546,362
2015
2,424,188
-8.3
95,978
4.0
30,267
65,712
11,805
22,998
0
76,905
26,085
33.9
2,754
48,066
48,066
22.9
2015
14,462
211,023
225,485
12,998
210,177
13,468
462,128
536,605
251,399
285,207
157,873
5,888
77,118
336,979
174,000
29,484
34,463
99,033
400,937
-63,958
462,128
2016
1,884,479
-22.3
142,093
7.5
24,286
117,807
11,321
19,444
0
125,930
41,299
32.8
4,825
79,806
79,815
66.1
2016
14,462
262,075
276,537
17,823
249,030
13,468
556,858
572,024
275,685
296,339
227,466
5,888
101,033
325,208
147,976
25,058
72,441
79,733
399,075
-73,867
556,858
2017E
2,107,227
11.8
147,765
7.0
28,910
118,855
12,281
20,801
0
127,375
39,686
31.2
2,750
84,939
84,939
6.4
2017E
14,462
316,560
331,021
20,573
271,045
16,038
638,678
748,130
304,595
443,535
161,217
5,888
94,765
383,318
165,094
28,897
105,651
83,676
450,044
-66,726
638,678
(INR Million)
2018E
2,473,750
17.4
167,595
6.8
36,085
131,510
11,138
23,384
0
143,756
45,743
31.8
2,745
95,267
95,267
12.2
Interest
Other Income
Extraordinary items
PBT
Tax
Tax Rate (%)
Min. Int. & Assoc. Share
Reported PAT
Adjusted PAT
Change (%)
Balance Sheet
Y/E Mar
Share Capital
Reserves
Net Worth
Minority Interest
Debt
Deferred Tax
Total Capital Employed
Gross Fixed Assets
Less: Acc Depreciation
Net Fixed Assets
Capital WIP
Goodwill on consolidation
Investments
Current Assets
Inventory
Debtors
Cash & Bank
Loans & Adv, Others
Curr Liabs & Provns
Net Current Assets
Total Assets
E: MOSL Estimates
(INR Million)
2018E
14,462
377,988
392,450
23,318
246,165
18,973
680,906
846,980
340,680
506,300
132,217
5,888
96,765
442,435
193,127
32,911
132,722
83,676
502,697
-60,262
680,906
3 August 2016
10

BPCL
Financials and Valuations
Ratios
Y/E Mar
Basic (INR)
EPS
Cash EPS
Book Value
DPS
Payout (incl. Div. Tax.)
Valuation(x)
P/E
Cash P/E
Price / Book Value
EV/Sales
EV/EBITDA
Dividend Yield (%)
Profitability Ratios (%)
RoE
RoCE
RoIC
Turnover Ratios (%)
Asset Turnover (x)
Debtors (No. of Days)
Leverage Ratios (%)
Net Debt/Equity (x)
2011
11.3
24.4
106.1
3.5
43.7
2012
5.4
22.1
109.8
2.8
38.1
2013
13.0
30.0
116.0
5.5
37.0
2014
27.0
45.1
134.3
8.5
36.7
2015
33.2
54.2
155.9
11.3
41.2
17.2
10.6
3.7
0.4
10.6
2.0
11.1
5.8
6
4.8
7
5.0
4.5
4
5.6
7
11.5
6.8
7
5.7
7
21.6
10.0
13
5.7
6
22.9
11.6
16
4.7
6
2016
55.2
72.0
191.2
17.0
38.7
10.4
7.9
3.0
0.5
7.2
3.0
31.8
18.1
45
3.4
5
2017E
58.7
78.7
228.9
18.0
37.8
9.7
7.3
2.5
0.5
6.8
3.1
28.0
16.1
38
3.2
5
2018E
65.9
90.8
271.4
20.0
38.0
8.7
6.3
2.1
0.4
5.7
3.5
26.3
16.0
30
3.1
5
1.1
2011
42,612
17,402
13,489
-12,475
-13,028
48,001
-43,057
4,944
38,532
0
-4,525
0
4,137
-13,967
-3,171
-13,001
30,475
-22,504
7,971
1.4
2012
48,127
14,256
-40,380
-6,881
3,946
19,067
-42,175
-23,108
19,417
0
-22,759
0
-14,852
-21,940
-7,000
-43,792
-47,484
60,747
13,264
1.4
2013
66,722
14,845
-11,273
-9,156
-1,901
59,237
-73,776
-14,539
37,763
0
-36,013
0
42,042
-25,538
-24,964
-8,460
14,764
13,734
28,498
1.2
2014
93,590
11,716
4,988
-25,665
11,236
95,865
-72,376
23,489
3,570
0
-68,806
28
-8,236
-19,556
-4,680
-32,444
-5,385
28,498
23,113
0.5
2015
95,978
22,559
129,553
-26,085
-14,583
207,423
-108,846
98,577
3,490
0
-105,356
0
-70,575
-12,373
-7,769
-90,718
11,349
23,113
34,463
0.4
2016
142,093
19,453
47,888
-41,299
0
168,135
-105,012
63,123
-23,915
0
-128,926
0
38,853
-11,321
-28,763
-1,230
37,978
34,463
72,441
0.3
2017E
147,765
20,801
26,069
-37,115
0
157,519
-109,856
47,663
6,268
0
-103,588
0
22,015
-12,281
-30,455
-20,721
33,210
72,441
105,651
0.1
Cash Flow Statement
Y/E Mar
Adjusted EBITDA
Non cash opr. exp (inc)
(Inc)/Dec in Wkg. Cap.
Tax Paid
Other operating activities
CF from Op. Activity
(Inc)/Dec in FA & CWIP
Free cash flows
(Pur)/Sale of Invt
Others
CF from Inv. Activity
Inc/(Dec) in Net Worth
Inc / (Dec) in Debt
Interest Paid
Divd Paid (incl Tax) & Others
CF from Fin. Activity
Inc/(Dec) in Cash
Add: Opening Balance
Closing Balance
E: MOSL Estimates
(INR Million)
2018E
167,595
23,384
20,607
-42,808
0
168,777
-69,850
98,928
-2,000
0
-71,850
0
-24,880
-11,138
-33,839
-69,857
27,071
105,651
132,722
3 August 2016
11

BPCL
Corporate profile
Company description
A Fortune 500 company, BPCL has interests in oil
refining and marketing of petroleum products. It is
the third largest refining company in India with a
capacity of 12mmtpa at its Mumbai facility and
9.5mmtpa at Kochi. BPCL has majority stake (63%) in
Numaligarh Refineries, a 3mmtpa refinery in the
north-east. BPCL has investments in IGL (22.5%) and
Petronet LNG (12.5%). BPCL is a public sector firm in
which the government of India holds 54.93%.
Source: MOSL/Bloomberg
Exhibit 1: Sensex rebased
Exhibit 2: Shareholding pattern (%)
Promoter
DII
FII
Others
Jun-16
54.9
8.6
21.9
14.5
Mar-16
54.9
9.4
21.1
14.6
Jun-15
54.9
12.1
18.1
14.9
Exhibit 3: Top holders
Holder Name
BPCL Trust For Investment In Shares
Life Insurance Corporation Of India
% Holding
9.3
1.7
Note: FII Includes depository receipts
Source: Capitaline
Source: Capitaline
Exhibit 4: Top management
Name
S Varadarajan
P Balasubramanian
Shrikant P Gathoo
Ramesh Srinivasan
S V Kulkarni
Designation
Chairman & Managing Director
Director (Finance)
Director (Human Resources)
Director (Marketing)
Company Secretary
Exhibit 5: Directors
Name
S Varadarajan
P Balasubramanian
P H Kurian
S P Gathoo
Ramesh Srinivasan
Name
B K Datta
Anant Kumar Singh
Deepak Bhojwani*
Gopal Chandra Nanda
Rajesh Mangal*
Source: Capitaline
*Independent
Exhibit 6: Auditors
Name
CNK & Associates LLP
Haribhakti & Co LLP
Ragini Chokshi & Co
Rohit & Associates
Type
Statutory
Statutory
Secretarial Audit
Cost Auditor
Source: Capitaline
Exhibit 7: MOSL forecast v/s consensus
EPS
(INR)
FY17
FY18
MOSL
forecast
58.7
65.9
Consensus
forecast
50.1
54.9
Variation
(%)
17.2
20.1
Source: Bloomberg
3 August 2016
12

BPCL
NOTES
3 August 2016
13

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