Motilal Oswal has given Buy recommendation for BPCL recommended buy rating on the stock with a target price of Rs 468 in its research rep with a target price of Rs. 468 in its research report issued on Feb 02, 2022

Motilal Oswal’s research report on BPCL

Reported GRM at USD9.7/bbl came higher than our estimates while implied marketing margin at INR4.1/lit came below our estimates. Refining throughput (+11% QoQ) and marketing sales volumes (+13% QoQ) were in line with our estimates, led by demand recovery in the aftermath of the second COVID wave. Technical debottlenecking is underway at the company’s Propylene derivatives petrochemical project (PDPP) plant in Kochi, and the management expects the three units to contribute starting 4QFY22. BPCL has decided to discontinue its plans for the Polyols plant due to escalating costs and unattractive IRR. Singapore GRM improved QoQ in 3QFY22, led by an improvement in gasoline, ATF, and naphtha cracks. It further stands at an average of USD6/bbl in Jan’22 as demand continued to outweigh supply. Net debt at end-9MFY22 for standalone stood at INR99b (INR199b at end-FY21), while consolidated came in at INR530b. The company has announced a second interim dividend of INR5/share. – There is no clear calendar of events; although, the management highlighted that the privatization has not happened thus far in FY22 and could be delayed to FY23.

Outlook

The stock is trading at 1.4x FY24E P/BV, and we value it on 1.7x FY24E P/BV to arrive at Target Price of INR468.

More Info on Trent

At 17:30 Bharat Petroleum Corporation was quoting at Rs 377.10, down Rs 5.00, or 1.31 percent.

It has touched an intraday high of Rs 384.50 and an intraday low of Rs 376.55.

It was trading with volumes of 429,108 shares, compared to its thirty day average of 311,230 shares, an increase of 37.88 percent.

In the previous trading session, the share closed up 0.79 percent or Rs 3.00 at Rs 382.10.

The share touched its 52-week high Rs 503.00 and 52-week low Rs 357.55 on 14 September, 2021 and 21 December, 2021, respectively.

Currently, it is trading 25.03 percent below its 52-week high and 5.47 percent above its 52-week low.

Market capitalisation stands at Rs 81,802.52 crore.

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