Nomura has maintained its buy call on Bharat Petroleum Corporation Limited (BPCL) with a target price of ₹430 after the company reported a strong first quarter of FY26, supported by record-high marketing margins that were partly offset by inventory losses. Management said it expects Russian crude sourcing to remain above 30%, providing continued cost advantages.
Nomura noted that the stock currently trades at 5.8 times FY27 EV/EBITDA, offering a favourable risk-reward profile. It also highlighted the government’s approval of ₹30,000 crore in LPG-related compensation for oil marketing companies as in line with expectations and supportive of balance sheet strength. The brokerage sees BPCL well positioned to deliver steady earnings growth, underpinned by healthy marketing margins and continued sourcing flexibility.
Disclaimer: The views and recommendations made in this article are those of Nomura. This article does not constitute investment advice. Investors should consult their financial advisors before making any investment decisions.
