Motilal Oswal has given Buy recommendation for BPCL recommended buy rating on the stock with a target price of Rs 570 in its researc with a target price of Rs. 570 in its research report issued on May 27, 2021
Motilal Oswal’s research report on BPCL
BPCL posted better-than-estimated profitability, driven by better marketing volumes and refining/marketing margin, further aided by inventory gains. The company made huge progress towards privatization in FY21, despite challenges posed by COVID-19, by streamlining its subsidiaries (divested its entire stake in NRL, consolidated its stake in BORL, merged BGRL with BPCL) and sold off its trust shares.
Outlook
Though the latter is possible only with the opening up of international travel, our faith in the privatization of BPCL has gone up a notch post its 4QFY21 result. We value BPCL at 2.3x FY23E P/BV and reiterate our Buy rating with a TP of INR570/share.