Investec has reiterated its ‘Sell’ rating on Bharat Petroleum Corporation Limited (BPCL) with a target price of ₹250, reflecting an 11% downside from the current market price of ₹278.30.
The brokerage highlighted that BPCL’s Q3 performance missed expectations due to inventory losses. While operational performance remains steady, core refining margin performance is unclear as the company has ceased disclosing inventory gains and losses. On a positive note, marketing margins have improved due to recent corrections in crude oil prices and product cracks.
Investec remains cautious on BPCL’s valuation, citing the lack of transparency in refining margins and the impact of inventory losses as key concerns.
Disclaimer: This article is for informational purposes only and does not constitute financial advice.
