Relationship of Bharat Petroleum Corporation Ltd with Nifty
Author: Bibhor Singh
Introduction:
Bharat Petroleum Corporation Limited (BPCL) is a state-owned oil and gas company in India. It is one of the largest players in the petroleum industry and is involved in the refining, marketing, and distribution of petroleum products. BPCL operates refineries, produces fuels, lubricants, and petrochemicals, and also has a strong presence in retailing through its network of fuel stations. As of my last update in September 2021, BPCL played a significant role in India’s energy sector. Please note that there might have been developments since then.
Objective:
To calculate beta of Bharat Petroleum Corporation Ltd and observe its significance.
Views and reviews:
Krishna kumar Gopalan Chairman & Managing Director
Our revenue from operations rose to all-time high of `5.3 trillion as against `4.3 trillion in the previous year, making us the sixth-largest company across all categories in the country by turnover. BPCL’s colors shine brightest when it meets challenges head on. In this challenging year which was marred by suppressed marketing margins on certain petroleum products, our robust refineries achieved their all-time high Gross Refining Margins (GRMs) at $20.24/ bbl, highest amongst the PSU Oil Marketing Companies
Arun Kumar Singh Chairman & Managing Director
Recent times have brought tumult and uncertainty on a global scale. Having undergone the harrowing churnings of the viral onslaught, the world felt less gloomy when the pandemic began to taper off gradually, rekindling a new enthusiasm in hope of better times ahead. Now, as we move forward, the world faces a fresh set of challenges posed by spiraling global inflation and unsettling geopolitical tensions marring the socio-economic prospects that were rising on the horizon as the impact of pandemic was abating. Certainly, these are trying times, testing one’s strength, patience, and resilience. But challenges are not new for BPCL, and our unyielding can-do spirit and never-give-up determination are the underpinnings of our inherent strength to take challenges head-on.
Data collection:
Data for This Period (1/7/2022 to 30/6/2023) has been downloaded from NSE India Site and Weekly Closing Prices Where Found out Then Weekly Returns of Nifty a Weekly Return of Bharat Petroleum Corporation Ltd were Calculated (Nifty Returns Taken as X and Equity Return Taken As Y) Y Was Regress On X.
Data analysis:
Equation y= -0.21-0.025x+e
(Bharat Petroleum Corporation Ltd =-0.21-0.025Nifty 50 + e)
T stat for b = 0.700
R2 = 0.0001
F= 0.0087
The above equation do not show any relationship between nifty 50 (X) and Bharat Petroleum Corporation Ltd (Y). Bharat Petroleum Corporation Ltd runs on own fundamentals the t stat for b is 0.700 not statistically significant at 5 % level, R2 is 0.0001which means 0.01% Y is explained by X. 99.99% is the error in model. 0.0087 Which is less than the table value which means overall them model is not statistically significant at 5% level.
Conclusion:
The Beta Of The Bharat Petroleum Corporation Ltd Is < 1 So The Company Is Good For Long Term Investment.