BPCL trades lower by 2% after Q3 results but brokerages expect up to 22% return

IDFC Securities has an outperform rating on BPCL with a target of Rs 565 per share. The house is of the view that core operating metrics of the company look set for better times over 15-18 Months.

The firm feels that Kochi is likely to boost refining over FY18-20.

Brokerage: Nomura | Rating: Buy | Target: Rs 565 | Return: 19%

Global research firm Nomura has maintained a buy on BPCL with a target at Rs 565 per share. "We continue to like all the oil marketing companies adding that the Kochi refinery is still in ramp-up phase and has not fully stabilised.

Brokerage: HDFC Securities | Rating: Buy | Target: Rs 581 | Return: 22%

Research and broking firm HDFC Securities has a buy rating on BPCL with a target of Rs 581. The house is of the view that Q3 FY18 EBITDA at Rs 31.88 billion, down 3.9 percent YoY has been attributed to higher operating expenses at Rs 36.18 billion and lower blended marketing margins at USD 7.4/bbl.

Kochi refinery was under stabilisation in Q3 which has resulted in higher opex.

Brokerage: Jefferies | Rating: Underperform | Target: Rs 425

Global broking and research firm Jefferies has an underperform rating on Bharat Petroleum Corporation with a target at Rs 425 per share. It feels that the core EBITDA is very weak and expects Q4 to be aided by rise in auto marketing. It also expects FY19 EPS to be soft before a pick-up in FY20.

BPCL, last Friday has informed that the Board of Directors of the Company at its meeting have declared an interim dividend of Rs 14 per equity share of face value Rs 10 each i.e. 140 percent on the paid-up equity share capital of the Company for the Financial Year 2017-18.

At 13:14 hrs Bharat Petroleum Corporation was quoting at Rs 465.75, down Rs 9.10, or 1.92 percent. It has touched an intraday high of Rs 480.70 and an intraday low of Rs 464.00.