Morgan Stanley has reaffirmed its ‘Overweight’ rating on BPCL, maintaining a target price of ₹419 per share. This stance comes after BPCL reported a 37% increase in standalone net profit to ₹4,649 crore for Q3FY25, which was below market expectations. The quarter was marked by reduced marketing margins and losses in the liquefied petroleum gas (LPG) segment, with revenue from operations decreasing by approximately 2% to ₹1.28 trillion.
Despite these challenges, Morgan Stanley remains optimistic about BPCL’s prospects, citing an oversupply in feedstock and robust domestic growth. The company’s management has expressed confidence in receiving government subsidies for cooking gas by April 2025 and has outlined long-term growth plans while addressing near-term headwinds. BPCL also expects to regain market share from private players over time. Morgan Stanley’s positive outlook is underpinned by BPCL’s strategic initiatives and resilience in navigating current market challenges.
