Bharat Petroleum Corporation Ltd (BPCL) operates in the petroleum industry in India.

The company operates in refinery and marketing activities, which make up the downstream petroleum sector. It operates 4 refineries in Mumbai, Kochi, Numaligarh and Bina.

It is also engaged in the exploration and production of hydrocarbons (E&P) outside India. Despite deregulation, there is temporary but frequent Government intervention in pricing of petrol and diesel especially closer to elections.

Nevertheless, it is able to generate healthy average marketing margin over longer time frame.

The GRMs are cyclical in nature. However, the upcoming IMO 2020 regulations (pertaining to shipping industry) imply a strong demand for diesel instead of conventional fuel-oil. This gives a roadmap to strength in GRM over the next few years.

Disclaimer: The above report is compiled from information available on public platforms. inChat team advises users to check with certified experts before taking any investment decisions.

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