HDFC Securities Suggests Buy Oil Sector Maharatna CPSE Stock, Sees 25% Potential Upside

Broking firm HDFC Securities initiates a Buy on Bharat Petroleum Corporation Ltd. (BPCL) with a target price of Rs 465 apiece. Keeping the assigned target price by the broking firm, if the stock is purchased at the current market price, it can fetch up to 25% return.

BPCL is among the leading Oil & Gas sector companies in India. It is a Maharatna Status Public Sector Undertaking (PSU). With a market capitalisation of Rs 81,010.74 Crore, it is a large-cap PSU.

Strong gains from marketing segment

HDFC Securities said, "Our BUY rating on Bharat Petroleum (BPCL), with a target price of INR 465, is premised on robust refining margins, a sharp recovery in auto-fuel gross marketing margins and the reduction in LPG under-recoveries. Q1FY24 EBITDA stood at INR 158bn, while APAT was at INR 106bn, coming in well above our estimates, supported by a strong performance from the marketing segment. Reported GRMs came in at USD 12.6/bbl (-USD 14.9/bbl YoY, -USD 7.7/bbl QoQ, HSIE: USD 11.7/bbl).

Stock Movement

In early deals on BSE on Friday, July 28, the Shares of BPCL declined 1.63%, ended at Rs 373.45 per share. The stock opened at Rs 380.95 against the previous close of Rs 379.65. It hit an intraday high of Rs 380.95 and an intraday low of Rs 372.25 on the BSE.

The shares declined 4.37% in the last 1 week, while in 1 and 3 months, the shares gained 2.26% and 4.49%, respectively. Shares gained 14.56% in the last 1 year. The shares declined 17.62% in the last 2 years, 19.10% in the last 3 years, and 5.97% in the last 5 years, respectively. It gained 219.02% in the last 10 years.

The stock quoted its 52-week-high at Rs 397.80 per share on July 07, 2023, and 52-week-low at Rs 288.20 per share on Oct 20, 2022.

Disclaimer - The stock has been picked from the brokerage report of HDFC Securities. Greynium Information Technologies, the Author, and the respective Brokerage house are not liable for any losses caused as a result of decisions based on the article. Goodreturns.in advises users to consult with certified experts before making any investment decision.