Prabhudas Lilladher's research report on Bharat Petroleum Corporation
Bharat Petroleum Corporation (BPCL) reported better-than-expected Q4FY25 results with EBITDA of Rs77.6bn (up 2.4% QoQ, PLe: Rs35.7bn, BBGe: Rs57.9bn). Adj PAT came in at Rs45.5bn (down 2.1% QoQ, PLe: Rs14.1bn, BBGe: Rs25.2bn). The company reported an exceptional item of Rs17.7bn due to impairment loss in its WOS subsidiary BPRL. GRM stood at US$9.2/bbl while GMM as per our calculation came in at Rs5.9/ltr. While GMM on petrol/diesel has risen to Rs12.3/9.7/ltrin Q1FY26-TD, average Singapore GRM continues to remain weak at ~US$3/bbl, and with the steep decline in crude oil prices we expect the company to report inventory losses. The company expects LPG underrecoveries to persist at RS170/cyl.
Outlook
We thus build in GRM of US$7.6/bbl (factoring in better configuration of Bina refinery) in FY26/27 and marketing margin of Rs4.8/4.1/ltr for FY26/27. The stock is currently trading at 1.5/1.4x of FY26/27 P/BV. We maintain REDUCE rating with a TP of Rs 267 based on 1.2x FY27 P/BV.
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.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
Find the best of Al News in one place, specially curated for you every weekend.
Stay on top of the latest tech trends and biggest startup news.
