BPCL, unlike peers, reported weak set of profits in Q3FY18 driven by lower than expected GRM despite strong crude throughput and sales volume growth. Revenue increased 13.2% to Rs606 bn, EBITDA decreased 3.9% to Rs32 bn due to lower GRM and lower marketing profits while PAT declined 5.6% to Rs21.4 bn. Core GRM stood at US$4.9/bbl (reported GRM US$7.9/bbl) vs US$3.6/bbl. We expect the company's marketing margin to improve from Q4FY18 with lower crude oil price. Also, Kochi terminal should stabilize in coming quarters which would augment its GRM. We roll over our valuation to FY20 gives a new TP of...