Brokerages maintain buy rating as BPCL beats market estimates
Some of the brokerages have cut target price while maintaining a buy rating.
By ET Bureau |
Agencies
The brokerage said sharp rise in debt is a worry albeit partially attributed to one off factors.
Mumbai: Most brokerages have maintained buy rating on Bharat Petroleum Corporation (BPCL) after core earnings for the March quarter beat estimates.
Nomura, Edelweiss, Kotak and Antique Stock Broking have maintained buy ratings on the stock. Shares of BPCL ended up 3.5 per cent at Rs 369.90 on Friday.
“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.
Some of the brokerages have cut target price while maintaining a buy rating. Edelweiss has cut target price to Rs 501 from Rs 525. Kotak Institutional Equities has cut target price to 440 from 490 and cut its EPS estimates by 7-24 per cent. The brokerage said sharp rise in debt is a worry albeit partially attributed to one off factors.
CLSA has maintained sell rating on the stock with a target price of Rs 330, citing weak macro in refining and marketing. Motilal Oswal has a neutral rating as it sees slim possibility of divestment in the current circumstances.
