Citigroup maintains buy on BPCL, raised target price to Rs 550

Citigroup has maintained buy rating on Bharat Petroleum Corporation in the long term and raised target price to Rs 550 from Rs 475. Shares of BPCL ended up 0.9% at Rs 490.25 on Tuesday while the BSE Sensex closed 291.62 points up at 38,506.09.

Company Financials

For the quarter ended 30-06-2019, the company has reported consolidated sales of Rs 76325.39 crore, up 2.63% from last quarter sales of Rs 74367.18 crore and up 6.30% from last year same quarter sales of Rs 71805.07 crore. The company has reported net profit after tax of Rs 1406.45 crore in the latest quarter.


Investment Rationale

Some political parties and trade unions have already started opposing the proposed move to privatise BPCL. With the stock up 38% in two months, investors are treading with caution but the final outcome will depend on the government’s willingness to get this done. News flow could stay supportive and would advise investors to stay invested.