Oil refiner Bharat Petroleum Corporation reported a 45 percent jump in fourth-quarter net profit on Tuesday, easily beating analysts' estimates.
The company's net profit came in at Rs 2,674 crore in the quarter ended March, compared with Rs 1,842 crore reported in the corresponding period a year ago.
Average gross refining margin (GRM) was $6.51 per barrel in the fourth quarter, compared with $6.01 per barrel a year earlier, while revenue from operations rose 15 percent to Rs 76,067 crore.
Global financial services firm Morgan Stanley has initiated coverage on the stock with an 'overweight' call and a price target of Rs 574 per share. The company's March quarter earnings were 15 percent above its estimates and 24 percent above consensus.
On the other hand, Jefferies has an 'underperform' rating on BPCL and has cut its price target to Rs 360 per share from Rs 425 per share earlier.
CLSA has a 'sell' call on BPCL but has raised its price target to Rs 390 per share from Rs 375 per share earlier. The company's March quarter numbers were helped by strong marketing performance and higher inventory gains while on the other hand, core refining margin was offset by higher marketing volumes.
CLSA sees the need for another 1-2 percent hike in diesel and petrol prices. The firm is of the view that weakness in marketing and refining margins will put pressure on BPCL's June quarter results, while concern about marketing margin may continue in this election-heavy year.
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