Buy Bharat Petroleum Corporation Ltd., target Rs 690.0 : Prabhudas Lilladher

Prabhudas Lilladher has Buy call on Bharat Petroleum Corporation Ltd. with a target price of Rs 690.0. The current market price of Bharat Petroleum Corporation Ltd. is 587.4. Time period given by analyst is year, when Bharat Petroleum Corporation Ltd. price can reach defined target. Prabhudas Lilladher has increased earnings estimates by 7% for FY17-18 to build in lower than-expected power costs from drop in LNG costs. It said the company's better-than expected earnings were led by marketing inventory gains of `12.8 billion and lower other expenses. It pegged PE at 9.8x FY17 and 9.4x FY18E earnings. As per Bloomberg estimates, peer HPCL is trad ing at 8.91x FY17E earnings.