Latest News
-
HDFC Bank Q4 Preview: Net Profit Likely To Grow 56% YoY; Credila Stake Sale To Fuel Earnings -
1:10 Split, Rs 299/Sh Dividend: Tata's Steel Stock Up 11% In 30-Days, Better Than Nifty; PL Says Accumulate -
625% Dividend, 1:10 Split, 3 Bonus; FMCG ITC Makes Big Acquisition Announcement; Stock Target Prices In April -
2:1 Bonus Issue: IT Penny Stock Turned; 1,600 Shares Market Lot Size Revised To 4,800 Shares -
FREE, FREE, FREE! 3:1 Bonus: Pharma Stock Hits Back-To-Back Upper Circuits; 500 Shares To Earn Rs 1,69,500 -
1:10 Stock Split: Below Rs 10, Fertilizer Sector Turned Ex-Split; 8,282% Returns In 5 Years -
Rs 17/Share Dividend: Record Date On April 26; Buy The ICICI Group Stock To Be Eligible? -
Honasa Consumer to Strengthen Operations by Merging Fusion Cosmeceutics and Just4Kids -
Wipro Reports 7.8% Decline in Q4 Net Profit; CEO Highlights Economic Challenges -
IREDA Hits Record Annual PAT of Rs 1,252 Cr in FY24; Q4 Profits Up by 33%
This State-Run Oil Refiner Has Several Buy Ratings; Upside Of Up To 40% Seen
State oil marketer BPCL has been recommended a buy by most broker firms. This is even as the company suffered losses to the tune of Rs. 1819.6 crore for the quarter ended March 2020 on account of inventory loss and lower refining margins. On Friday (June 5, 2020), the stock ended higher by 3.54% at Rs. 369.90
The brokerage houses which have asserted a buy call on the counter:
| Brokerage | Rating before result | Rating after result | Revised target rate |
|---|---|---|---|
| CLSA | Sell | Sell | Rs. 330 |
| Antique | Buy | Buy | Rs. 425 |
| Nomura | Buy | Buy | Rs. 390 |
| Kotak Institutions | Buy | Buy | Rs. 440 |
| Edelweiss | Buy | Buy | Rs. 501 |
| Morgan Stanley | Overweight | Rs. 517 |
"Core earnings beat expectations with robust integrated margins and stable refinery run rates. Covid-19 impact was less severe in current quarter with refinery utilisation up to 77 per cent by end May and India's fuel demand recovering to 70 per cent of pre-Covid levels despite the ongoing lockdowns," said Morgan Stanley, which has maintained overweight rating on the stock with a target price of Rs 517.
Postives at the company: Net cash generation or net cash flow has been improving for last 2 years.
Negatives: Increasing debt is a one concern at the company
Another risk is the weak prospect in the refining and marketing space amid Covid 19 backdrop. Though demand as the economy has begun to open up is expected to return to pre-Covid 19 levels in July for both diesel and gasoline.
Also, as there is a threat to India's fiscal deficit, we can see a divestment in the company.
GoodReturns.in
