GP Petroleums' stock rises on JV agreement With West Coast Oils

GP Petroleums' shares experienced a rise in early trading on 7 May as the company announced a joint venture with West Coast Oils LLP. This strategic partnership aims to establish a company focused on manufacturing and trading specialty bitumen products and other allied commodities. The joint venture will produce all types and grades of bitumen emulsions, polymer modified bitumen (PMB), crumb rubber modified bitumen (CRMB), and other value-added bitumen products. Both companies will contribute equally to the joint venture and have equal representation on its board.

The stock's performance has been noteworthy, although it currently trades significantly below its 52-week high.GP Petroleums' share price rose a percent to Rs  39.46 on May 7 following a joint venture announcement with West Coast Oils LLP. On 17 September 2024, GP Petroleums' share price reached a 52-week high of Rs 93.45, whereas it hit a low of Rs 36.00 on 7 April 2025. As of now, the stock is trading 58.67% below its highest level in the past year, yet it is 7.28% above its recent low. The company's market capitalisation stands at Rs 196.90 crore, reflecting its substantial presence in the market.

The joint venture with West Coast Oils LLP is expected to enhance GP Petroleums' market positioning by expanding its product range and entering into new business segments. This collaboration may also provide both companies with the opportunity to leverage each other's strengths and explore new markets. The equal investment and board representation in the joint venture signify a balanced partnership, aimed at maximising growth potential in the bitumen industry. As the bitumen market evolves, such strategic alliances could play a pivotal role in shaping the competitive landscape and driving innovation in product offerings.

"The Company has signed a Joint Venture Agreement with West Coast Oils LLP on May 06, 2025 to establish a joint venture company for the purpose of engaging in the business of manufacturing and trading of the specialty bitumen products and other allied commodities - all types and grades of Bitumen Emulsions, PMB (Polymer Modified Bitumen), CRMB (Crumb Rubber Modified Bitumen) and other value added Bitumen Products. The Joint Venture will leverage the combined resources and expertise of both the parties, creating a strong foundation for success and growth in the bitumen market," said GP Petroleums.