BPCL Stocks on 52 Weeks High: Bharat Petroleum Corporation Limited (BPCL) shares are witnessing a sharp rise on 2 March. In today’s business, the company’s stock reached over Rs 482 with a strength of more than 4.5 per cent. This is a 1-year high for the stock. The stock had closed at Rs 455 on Monday. Actually, the board of BPCL has approved the proposal to sell the entire stake in Numaligarh Refinery Limited (NRL). This stake will be bought by Oil India Limited, Engineers India Limited and the Government of Assam. Due to this news, BPCL’s stock rose sharply on Tuesday.
Should investors place bets
Many brokerage houses have given positive opinion about BPCL. Brokerage house Nomura has raised the target to Rs 550, recommending Nivea in the stock. Nomura says that now the situation is gradually clearing on disinvestment, due to which the sentiment has improved. Oil prices are expected to fall further, product margins are weak, but excise duty is expected to decrease, which is a positive factor. Recovery may take some time, but the valuation is better. The company’s earnings are also expected to grow in the coming days.
Brokerage house Motilal Oswal has suggested investing, giving a target of Rs 520 for the stock. At the same time, Jefferies has given a target of 500 rupees. Brokerage house MK Global has also given an overweight rating on the stock to Rs 495. JP Morgan has set a target of Rs 550, recommending the purchase.
Paving the way for privatization!
BPCL is expected to get Rs 9,876 crore from the sale of stake in Numaligarh. After this, the path of privatization of BPCL will also be cleared. BPCL is the second most oil marketing company in the country. BPCL holds 61.65 per cent stake in NRL. BPCL has said in the information given to the stock exchanges that if the Assam government does not buy a stake in NRL, then the entire stake will be sold to Oil India and EIL.
How much share of BPCL
BPCL holds 61.65 per cent stake in Numaligarh refinery, while Oil India holds 26 per cent and Assam government has 12.35 per cent. After selling stake in Numaligarh, BPCL will have three refineries. They are located in Mumbai, Kochi and Bina (Madhya Pradesh). The government is selling its entire 52.98 per cent stake in BPCL. This will be the largest disinvestment in a government company. The government has planned to raise Rs 1.75 lakh crore from disinvestment during the next financial year.
(Note: We have given the information here based on the performance of BPCL shares and the report of the brokerage house. Considering the market risk, take the opinion of the experts before investing.)