Buy Bharat Petroleum Corporation; target of Rs 420: Prabhudas Lilladher

Prabhudas Lilladher is bullish on Bharat Petroleum Corporation has recommended buy rating on the stock with a target price of Rs 420 in its research report dated January 30, 2023.

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February 01, 2023 / 13:35 IST

26 Aug, 2025 12:21

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Prabhudas Lilladher's research report on Bharat Petroleum Corporation

We cut our FY24/25E earnings by 4%-5% to factor in lower other income. However improving marketing environment along with strong GRMs will drive near term earnings, in our view. Bharat Petroleum Corporation (BPCL) reported better than expected Q3 results with EBITDA of Rs42.3bn (+195%QoQ; PLe Rs 1.9bn) and PAT of Rs19.6bn (PLe –Rs16.4bn), due to better than expected marketing profitability. Sharp correction in international diesel prices to ~$115 from recent peak of USD170/bbl has improved marketing segment profitability outlook. Also, ban on import of Russian oil product from Feb-23 will likely support refining product spreads. Global recessionary pressure along with high interest rates will keep oil prices range bound, despite increased demand from China.

Outlook

Further, OMCs are well placed to benefit from improving marketing and healthy refining profitability. Maintain ‘BUY’ with a PT of Rs420 based on 7x EV/E FY24E.

For all recommendations report, click here