Bharat Petroleum Corporation Ltd (BPCL) is on brokerage radar after Citi reiterated its Buy rating on the stock, setting a target price of ₹390 per share — implying an upside from the current market price of ₹311.
According to the brokerage, BPCL delivered a strong Q4 performance with EBITDA coming in well above expectations, primarily driven by a substantial beat in refining margins. Gross refining margin (GRM) rose sequentially from $5.6 per barrel to $9.2, significantly exceeding Citi’s estimate of $5.9 per barrel.
The brokerage also noted that BPCL’s marketing segment benefited from higher inventory gains during the quarter. However, it flagged that core marketing margins were weaker quarter-on-quarter, largely due to lower retail fuel spreads.
While the refining upside supported the company’s overall profitability, Citi highlighted that LPG under-recoveries continue to weigh, as compensation from the government remains elusive.
BPCL’s stock may respond to the strong refining metrics in the near term, though the outlook on fuel subsidies and retail margins could temper sentiment.
Disclaimer: This article is for informational purposes only and does not constitute investment advice. Investors are advised to consult certified financial professionals before making any investment decisions.
