Bharat Petroleum Corporation Ltd. share price target

BPCL reported an EBITDA of Rs 24.2bn, led by strong GRM of US$ 7.7/bbl. Results are not comparable owing to inventory, forex and under-recovery impacts. Lower crude prices reduced UR and therefore, the interest cost was down -19% YoY. APAT was Rs 14.9bn.

EBITDA/PAT beat; expect re-rating with RoE >24%; valuations attractive BPCL reported 3QFY16 EBITDA at INR23.6b (est 19.9b; +109% YoY, +84% QoQ) boosted by high GRM at USD7.7/bbl (est. of 6). With inventory losses now largely...

BPCL was the only OMC that reported profits in 2Q despite a huge inventory and forex losses. Reported EBITDA was Rs 13.3bn and PAT came in at Rs 10.2bn. Interest cost remains low because of 90% fall in gross under recovery (UR). Quarterly results of OMCs are ambiguous as they get distorted by inventory, forex and UR impact.

BPCL reported an EBITDA of Rs 38.2bn ( 151% YoY) led by six years high GRM of US$ 8.6/bbl ( 153%) owing to strong product spreads and inventory gains on crude. Quarterly results are not comparable due to timing mismatch in subsidy payments and inventory/forex impact. Interest cost remains low owing to 91% fall in gross UR. RPAT was Rs 23.8bn.

BPCL reported strong results in 4Q as EBITDA came in at Rs 45bn. Quarterly results are not comparable owing to timing mismatch in subsidy payments and inventory & forex impact. EBITDA for FY15 rose to an all time high of Rs 83bn ( 3%). PAT grew to Rs 51bn ( 25%) helped by lower interest cost (-57%).

A Fortune 500 company, BPCL has interests in oil refining and marketing of petroleum products. It is the third largest refining company in India with a capacity of 12mmtpa at its...