Company Profile: State-owned company leader in Oil and Gas sector headquarter in Maharashtra.

The starting point of the company went back to the pre-independence era. Burma oil company was incorporated in 1886, the same year the first oil well was drilled in Assam. In 1976, the government of India took over the Burmah shell group of companies and changed the name to Bharat Refineries Limited, which again changed to the current name in 1977.

The company is operating in a vast spectrum of products. From exploration to the marketing of petroleum products. With its extensive network with 6553 retail outlets and 1007 kerosene selling dealers and partnerships with some big businesses like Pizza Hut, McDonald’s, etc

The company also sells Engine oil, transmission oils, and greases to 8000+ industrial customers. In addition, the company also provides Aviation Turbine Fuel to Aviation companies.

With over 25 million customers, the company is a leader in LPG supplier to householders, with 2137 distributors across the country under the brand Bharat Gas.

With its two refineries and one subsidiary, it also maintains a significant capacity in the refinery. Mumbai refinery has 12 million metric tonnes per annual and Kochi with 7.5. MMTPA. Subsidiary in Numaligardh holds 3 MMTPA.

The company is also an official supplier of Naptha to all four Power plants in Andhra Pradesh.

Share Holding Pattern BSE Data

 

Financials and Ratio

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Future Prospects: Though it is a Downstream Company, it holds a stake in some oil fields. Like in Mozambique. Govt of India relaxes Subsidies on Fuel and gas. The company is also going through capital Expenditure which is helping it increase its capacity. Though the price of crude is rising and as a result, It may affect the company in the short term, as an oil field owner, it is expected to help them also. The timeline given by the company makes it clear that till the end of 2018, there will be no output from the offshore assets. But right now also, it is suitable for long-term investors if planning to sell after 2018.