Lack of clarity over Numaligarh refinery, investments key concerns for BPCL

The high valuation is another reason for analysts to be cautious on the stock

The Bharat Petroleum Corporation (BPCL) stock scaled fresh heights on Thursday, after the Cabinet Committee on Economic Affairs approved the strategic disinvestment of the Centre’s entire stake in the fuel-retailing and -refining company. 

At first glance, investor euphoria in the counter seemed justified, given that divestment by the government would mean value unlocking and possibility of the company garnering higher valuations. However, that may not be the case, as some experts have pointed out.

Amid the euphoria, analysts trying to assess the value unlocking potential and, consequently, the upside after the recently concluded oil and gas deals, say that most of the