Single-Digit PE PSU Stock: This Stock to Launch World’s First Hydrogen-Powered VTOL Aircraft – Rerating on the Cards?
With a PE ratio of 8.13x, the company trades at a discount compared to the industry PE of 20.3x. The company has ROCE of 32.1 per cent and ROE of 41.9 per cent.
Bharat Petroleum Corporation Limited (BPCL) has announced several strategic initiatives to advance its role in the green energy sector. BPCL has partnered with BluJ Aerospace, ANERT, and CIAL to develop the world's first hydrogen-powered VTOL aviation ecosystem, marking a significant milestone in sustainable aviation. This collaboration aims to enhance urban and regional air mobility with hydrogen-fueled VTOL aircraft, significantly reducing carbon emissions. Additionally, BPCL has joined forces with KPIT Technologies to promote hydrogen-based mobility in Kerala, launching hydrogen fuel cell electric buses between Kochi and Trivandrum. This initiative aligns with India's National Green Hydrogen Mission, supporting the development of hydrogen refueling infrastructure.
Furthermore, BPCL has launched the "Emerge" cohort under its Ankur Fund to support startups in energy efficiency and city gas distribution, reinforcing its commitment to innovation and sustainability in the oil and gas sector. These efforts underscore BPCL's dedication to leading the transition towards a greener energy future.
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As of 19 March 2025, BPCL's stock is priced at Rs 265. The stock's 52-week high is Rs 369.8, and the 52-week low is Rs 237.35, indicating it is trading closer to its 52-week low.
Bharat Petroleum Corporation Limited (BPCL) is a prominent public sector company in India, engaged in refining crude oil and marketing petroleum products. With a total refining capacity of 35.3 MMTPA across its Mumbai, Kochi, and Bina refineries, BPCL holds approximately 14-15 per cent of the country's refining capacity. The company has a diverse presence across the value chain, including retail petroleum, LPG distribution, industrial and commercial petroleum products, aviation turbine fuel, lubricants, and gas. BPCL's strategic investments focus on expanding its marketing infrastructure, city gas distribution, and upstream projects, with a consolidated expenditure plan of ₹10,000 crore for FY23.
The company's commitment to sustainability is evident in its roadmap to become a Net Zero Energy Company by 2040 and its initiatives in electric vehicle charging infrastructure. BPCL's exploration activities span 18 blocks domestically and internationally, with significant interests in Russia. The company has also undergone strategic changes, such as the amalgamation of Bharat Oman Refineries Ltd. and Bharat Gas Resources Ltd. with BPCL.
BPCL has a market capitalisation of Rs 1,13,732.97 crores. The stock has delivered a 1-year return of -9.95 per cent and a 3-year return of 43.96 per cent. With a PE ratio of 8.13x, the company trades at a discount compared to the industry PE of 20.3x. The company has ROCE of 32.1 per cent and ROE of 41.9 per cent.
Investors must keep this Large-Cap stock on their radar.
Disclaimer: The article is for informational purposes only and not investment advice.