Accumulate Bongaigaon Refineries & Petrochemicals: Anagram

Anagram Research has recommended an accumulate rating on Bongaigaon Refineries and Petrochemicals. "BRPL's refinery at Assam is processing crude available from the oil fields of ONGC and OIL located in the North-East India and Ravva crude oil from the Krishna-Godavari basin off the coast of Andhra Pradesh. The company had a total capacity of 2,350,000 MT Crude Throughput: 30000 MT of Polyster Staple Fibre and 90500 MT of Petrochemicals."

"As per the scheme of Merger, 37 shares of BRPL would entitle the shareholder to receive four shares of IOC. If approval for the proposed merger comes before the ex date investor may be short changed. Dividend yield currently stands at 9.5%. The stock goes ex dividend on 21st August. AT CPM of 52.75, the stock is trading at 3.5x FY08 EPS of Rs 15. We recommend investors to accumulate the stock at current levels for dividend yield," says Anagram Research.

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