Shares of Bharat Petroleum Corporation Limited (BPCL) surged more than 2% in early trading today, following an encouraging report from brokerage firm Citi. As of 9:27 am, BPCL shares were trading 2.33% higher at ₹351.80.
Citi’s Positive Outlook
- Buy Call: Citi has issued a “Buy” recommendation for BPCL, setting a target price of ₹380 per share.
- Positive Catalyst Watch: The firm has initiated a 90-day positive catalyst watch on BPCL.
Performance Analysis
- Outperformance: Year-to-date, three major oil marketing companies (OMCs) have outperformed the broader market by 17% to 37%. However, much of this outperformance was concentrated at the start of 2024.
- Recent Underperformance: Over the last six months, BPCL has faced a decline of 9% to 21%. This underperformance has been attributed to:
- Soft Gross Refining Margins (GRMs)
- Weak marketing margins following fuel price cuts
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