BPCL came out with disappointing set of numbers in Q1FY18 led by lower than expected GRM and higher than expected other expenses due to one-time LNG cost. Crude throughput increased 3.5% YoY to highest-ever 6.4mmt. However, sales volume remained flattish YoY to 10mmt while other OMCs had reported growth. Kochi is gradually stabilizing and management expects it to operate at utilization of 70%-80% in Q2 and over 90% in Q4FY18 onwards. Higher utilization at Kochi would drive growth but reducing market share in diesel is a cause for concern. We are keeping TP unchanged at Rs500. Maintain HOLD....