BPCL Shares Up 7% to Hit 52-Week High Amid Surge in Volumes; Should you buy?

Actions of Bharat Petroleum Corporation (BPCL) jumped about 7 percent, hitting a new all-time high of $370.50 on the NSE, driven by strong trading activity.

As of noon, a total of three million shares had been traded on both the BSE and NSE combined, significantly surpassing the average one-month trading volume of one crore shares.

During the day, around 3 crore shares were traded on both the exchanges, and the total market capitalization of the company reached $1.6 crores.

BPCL shares finally closed 6.23 percent higher in $366.60 per share on Friday. The stock has risen 62 percent this year, outperforming the benchmark Nifty index, which has risen 18 percent.

BPCL Stock Performance

Over the past year, BPCL shares have risen 110 per cent, more than doubling investors’ capital. In contrast, the Nifty index has risen 30 per cent during the same period.

Earlier this month, BCL announced that its subsidiary, in association with Indian Oil Corporation (IOC), has received a production concession from the Supreme Council of Financial and Economic Affairs (SCFEA) in Abu Dhabi.

The company announced that the production concession agreement comes after Urja Bharat Pte Limited (UBPL) obtained the exploration and production concession in March 2019 and successfully completed the exploration phase. UBPL is a 50:50 special purpose vehicle (SPV) formed by BPCL and the IOC.

For the quarter ended June 2024, BPCL reported a 73 per cent decline in net profit, for a total $2,841.55 million rupees. This significant drop was attributed to lower refining margins and a reduction in fuel prices, which affected marketing margins. The company’s operating income in the first quarter of FY25 saw a slight year-on-year decline of 0.1 percent, reaching $1.28 crores.

In the current calendar year alone, shares have risen 62.7 percent. BSE analysis reveals that the stock has gained 23.5 percent in the last 6 months and 20.7 percent in the last 3 months.

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