The stock has surged ~35% in a month and almost fully reflects our bull case, leaving little upside. Government's demonstrably weak stance on auto fuel pricing (across different political regimes), expected credit rating downgrades (likely on losing implicit GoI support on balance sheet) and rich valuations compel us to downgrade BPCL to SELL A group of Secretaries on disinvestment has approved the strategic sale of Government of Indias (GoI) entire 53.2% stake in BPCL. The Department of Investment & Public Asset Management (DIPAM) has floated a request for proposal inviting transactions, legal advisors and asset valuers for this purpose. Yet, there is uncertainty on whether this will lead on to genuine privatisation or yet another stake sale to a Public Sector Unit (PSU).