Light At The End of Covid19 Tunnel for BPCL : Results, Con-Call Highlights and Important Levels

Light At The End of Covid19 Tunnel for BPCL 

Q1 Results Overview : 

BPCL posted a profit of Rs 2076 crore in the Q1 of financial year 2020-21 compared to a profit of Rs1075 crores in Q1 of previous financial year. This is almost 93% growth in profits year-on-year(Y-O-Y). The petroleum retailer had posted a loss of Rs 1361 crores in the last quarter. The profit was largely attributed to inventory gains and reduced expenditure as revenue fell almost 41% to Rs 50616 crores Y-O-Y due to lock down on account of Covid19 pandemic.

         Con-Call Highlights :

  • BPCL is hopeful of improved margins in the next two quarters and is planning to open about 1,000 fuel stations in the current fiscal year, in line with last year.
  • The planned privatisation is on schedule and is expected to be completed by March 2021.
  • Oil companies across the globe have cut their capex plans as the pandemic has brought down the oil prices and fuel demand.
  • In similar lines, BPCL also will focus on higher value projects like important petrochemical projects and refinery expansions. They however may differ smaller value projects to next year. Capex target has been brought down to 80 billion rupees from 125 billion rupees.
  • Refineries are operating at a capacity of 70–75% at present.
Definitely, BPCL is seeing some light at the end of Covid19 tunnel. 

However, markets didn't positively react to the profits as share prices tumbled 1.88% from previous day close of Rs 421.15.

 Important Levels to watch for BPCL : 

  • Major Resistances : 200 SMA is at 419.12. Other resistances seen at 448 and 480 from the charts.
  • Major Supports : 200 EMA is at 398.5, Other major supports seen at 390 and 370 from the charts.
  • 52 week high is at 549 and last 3 months high is at 481.
  • Current Market Price is at 413.25.
Let us hope that the privatisation bound petroleum retailer would rise to 500-550 levels by the time EOIs are opened on September 30,2020. Global Oil giants such as Saudi Aramco, Roseneft, ExxonMobil are expected to bid. We have to watch out if other oil majors such as ADNOC,Shell, Reliance, BP, Total and Adani will also quote or not ! 

Disclaimer : The above article is for educational purposes and is collated from various publicly available resources and also on personal study. Please do your own self study,  consult your personal finance advisor before making any trade/investment on the securities mentioned in the article. 

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