BPCL strategic sale could take place at Rs 510-Rs 1100 a share

ET Intelligence Group: The stock of Bharat Petroleum Corporation (BPCLNSE 4.43 %) has gained 28 per cent over the past one month following the government’s plan to sell its stake in the oil marketing firm to a strategic buyer. The government has now initiated a bidding process to find out an asset valuer to estimate the fair value of the company.

The ET Intelligence Group looked at the various parameters along with domestic and global deal comparisons to compute BPCL’s possible fair value. Currently, BPCL’s enterprise value is 8.2 times its next fiscal’s operating profit before depreciation and amortisation (EBITDA). This includes income from refineries, marketing of fuel, 10 per cent stake in the Mozambique gas asset and investment in other energy companies such Petronet LNG, IGL and Oil India.