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Last Updated : Nov 28, 2019 03:41 PM IST | Source: Moneycontrol.com

Buy Bharat Petroleum Corporation; target of Rs 600: Prabhudas Lilladher

Prabhudas Lilladher is bullish on Bharat Petroleum Corporation has recommended buy rating on the stock with a target price of Rs 600 in its research report dated November 21, 2019.

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Prabhudas Lilladher's research report on Bharat Petroleum Corporation


In a significant decision, the Government has given cabinet approval to transfer government shareholding (53.29%) in BPCL, ex of the Numaligarh refinery (NRL), to a strategic investor. Transfer of management control is positive and will help the government optimize value; potential receipt ~Rs830bn, in our view. The transaction timelines remain tight and are expected to be closed by FY20 end. With ~25% fuel market share in India, BPCL will give a significant foothold in domestic market and we expect interest from range of suitors including global oil majors like Aramco, Rosneft, Shell etc.


Outlook


We remain positive on OMCs given benign crude price environment and value BPCL at Rs600 (Rs537 earlier) based on 8x EV/EBIDTA FY22E.


For all recommendations report, click here


Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.



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First Published on Nov 28, 2019 03:41 pm
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