Sharekhan has given Buy on the stock with a revised price t recommendation for Bharat Petroleum Corporation with a target price of Rs. ekhan is bullish on Bharat Petroleum Corporation has recommended buy on the stock with a revised price target (PT) of Rs. 520 in its research report issued on Feb 02, 2022

Outlook

BPCL has underperformed OMCs with a 18% decline in its stock price as compared to increase of 17%/6% in IOCL/HPCL stock price in the last six months primarily due to news-flow related to delay in privatisation process. This provides a good entry opportunity to long-term investors given our expectation of strong earnings recovery led by cyclical recovery in GRM and potential valuation re-rating from privatisation (although witnessed significant delays). Hence, we maintain our Buy rating on BPCL with an unchanged PT of Rs. 520. At CMP, the stock trades 9.2x its FY2023E EPS.

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