Jefferies has reiterated its buy call on Bharat Petroleum Corporation Limited (BPCL) with a target price of ₹410, despite the company reporting first-quarter EBITDA 16% below its estimate due to weaker refining margins. The brokerage said earnings should improve with government compensation for LPG losses, which will support both profitability and net debt reduction.
Jefferies added that the earnings outlook remains strong given the current rangebound crude oil environment, supported by OPEC supply management. While refining weakness impacted quarterly results, the brokerage believes structural support from government measures and stable crude dynamics provide visibility on earnings recovery, justifying a positive stance on the stock.
Disclaimer: The views and recommendations made in this article are those of Jefferies. This article does not constitute investment advice. Investors should consult their financial advisors before making any investment decisions.
