Nomura has reiterated its Buy rating on Bharat Petroleum Corporation Limited (BPCL) with a target price of ₹380, suggesting a 22% upside from the current market price of ₹311.10. BPCL’s Q2 results were lower than anticipated due to higher LPG under-recoveries, inventory losses, and lower gross refining margins (GRMs).
Russian crude sourcing moderated to 34%, and the PDPP (Propylene Derivatives Petrochemical Project) achieved an 80% utilization rate. In light of recent performance, Nomura has trimmed its FY25 EBITDA estimate by 2% and its FY26 estimate by 6%. However, Nomura highlighted that the regulatory environment for auto fuel marketing margins remains supportive, with margins currently at ₹9 per liter, significantly above the ₹4 per liter factored in prior estimates, driven by stable crude prices.
Disclaimer: This article is for informational purposes only and does not constitute financial advice. Investors are advised to perform their due diligence before making investment decisions.
