Buy BPCL; target of Rs 570: Motilal Oswal
Motilal Oswal is bullish on BPCL recommended buy rating on the stock with a target price of Rs 570 in its research report dated May 27, 2021.
June 10, 2021 / 11:33 AM IST
Motilal Oswal's research report on BPCL
BPCL posted better-than-estimated profitability, driven by better marketing volumes and refining/marketing margin, further aided by inventory gains. The company made huge progress towards privatization in FY21, despite challenges posed by COVID-19, by streamlining its subsidiaries (divested its entire stake in NRL, consolidated its stake in BORL, merged BGRL with BPCL) and sold off its trust shares.
Though the latter is possible only with the opening up of international travel, our faith in the privatization of BPCL has gone up a notch post its 4QFY21 result. We value BPCL at 2.3x FY23E P/BV and reiterate our Buy rating with a TP of INR570/share.
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