Accumulate Bharat Petroleum Corporation; target of Rs 406: Prabhudas Lilladher

Prabhudas Lilladher recommended accumulate rating on Bharat Petroleum Corporation with a target price of Rs 406 in its research report dated February 04, 2026.

Broker Research

February 05, 2026 / 13:03 IST

accumulate

Prabhudas Lilladher's research report on Bharat Petroleum Corporation

Major projects remain on track, with revised completion timelines as follows: Kochi polypropylene plant by CY28, Bina refinery/petchem expansion by midCY28, and Andhra Pradesh (AP) refinery/petrochem project awaiting DFR finalization. Total cost for the AP project may be revised upward to Rs1,100– 1,200bn from Rs960bn, due to rupee depreciation. The AP refinery will be housed under a separate entity, with BPCL exploring a strategic partnership, including discussions with foreign partners; Oil India has already signed a nonbinding MoU for participation in the project. BPCL’s cumulative capex over the next 5 years is guided at Rs2,500–2,700bn. Annual capex is expected to be Rs200-250bn over the initial 2 years, ramping up to Rs500-600bn p.a. over the subsequent 3 years. Further, BPCL continues to source non-sanctioned Russian crude, in the absence of any formal communication from the ministry. Additionally, if given the opportunity to purchase Venezuelan crude, BPCL will first test its feasibility/combability with the pipelines and refinery. Subject to successful trials, the company may proceed with commercial sourcing, with expected discount of ~USD9/bbl to benchmark.

Outlook

We value the stock at 1.6x Dec’27E P/BV (previous: 1.5x) and maintain ‘Accumulate’ rating with revised TP of Rs406 (previous Rs381).

For all recommendations report, click here