Buy BPCL; target of Rs 600: Emkay Global Financial

Emkay Global Financial is bullish on BPCL has recommended buy rating on the stock with a target price of Rs 600 in its research report dated January 30, 2024.

Broker Research

February 03, 2024 / 13:35 IST

Buy

26 Aug, 2025 12:21

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Emkay Global Financial's research report on BPCL

BPCL logged Q3FY24 EBITDA of Rs62.5bn (Emkay: Rs28.1bn), primarily driven by higher-than-expected reported GRM of USD13.4/bbl (vs. our estimate of USD6.5/bbl) that was led by discounted Russian crude, elevated diesel spreads, and operational efficiencies. Marketing margins were largely in-line, while SA PAT came in at Rs34bn. Management reiterated its capex plans of Rs1.7trn up to CY28, with Bina expansion, Kochi PPU, and Mozambique E&P being key projects. Capex target for FY25 is Rs150bn, while Mgmt envisages closure of the rights issue by Mar-24 (subject to approval by the MOPNG).

Outlook

We remain constructive on BPCL, on a steady marketing outlook as general elections close in, and amid a healthy refining environment. We raise FY24E EPS by 29% and FY24E/25E EPS by 13-14% each, on better GRMs and below operating-line adjustments. We retain BUY, and raise Dec-24E TP by 10% to Rs600/sh.

For all recommendations report, click here