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HDFC Securities has add call on Bharat Petroleum Corporation with a target price of Rs 435. The current market price of Bharat Petroleum Corporation Ltd. is Rs 378.3. Time period given by analyst is one year when Bharat Petroleum Corporation Ltd. price can reach defined target.

Bharat Petroleum Corporation Ltd., incorporated in the year 1952, is a Large Cap company (having a market cap of Rs 82420.76 Crore) operating in Gas & Petroleum sector.

Bharat Petroleum Corporation Ltd. key Products/Revenue Segments include Petroleum Products, Oil Crude, Other Operating Revenue, Subsidy for the year ending 31-Mar-2021.

Financials

For the quarter ended 31-12-2021, the company reported a Consolidated Total Income of Rs 95914.55 Crore, down -6.51 % from last quarter Total Income of Rs 102596.50 Crore and up 43.56 % from last year same quarter Total Income of Rs 66809.47 Crore. Company reported net profit after tax of Rs 2354.28 Crore in latest quarter.

Investment Rationale
The ADD rating on Bharat Petroleum (BPCL) with a target price of INR 435 is premised on (1) recovery in domestic demand for petroleum products in FY22 and FY23, (2) improvement in refining margins over the coming 18 months, and (3) sustained auto fuel gross margin over INR 4.5/lit. Q3FY22 EBITDA/APAT, at INR 42.1/24.6bn, were -14/-12% below estimates, owing to high operating cost and inventory loss. Reported GRM stood at USD 9.7/bbl (HSIE: USD 5.7/bbl).


Promoter/FII Holdings
Promoters held 52.98 per cent stake in the company as of 31-Dec-2021, while FIIs owned 12.66 per cent, DIIs 21.13 per cent.

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