BPCL Q1 Results Review - Marketing Margins A Major Earning Driver: Dolat Capital

Dolat Capital Report

Bharat Petroleum Corporation Ltd.'s profit after tax was ahead of estimates due to-

1. higher-than-expected marketing margins on oil products and better than expected gross refining margin of $12.6/barrel of oil;

2. refinery throughput up 7% YoY;

3. BPCL has been gaining market share in auto fuel among public sector undertaking; and

4. 20% YoY fall in operating expense.

Mega spending on energy transition, net carbon zero and energy Security:

A plan to invest Rs 1,5 trillion over next five to six years, capex/annum will accelerate from FY26 onwards.

Management has largely maintained capex guidance of Rs 100 billion/Rs 130 billion in FY24/FY25.

Considering the higher marketing margins we increase assumptions for the FY24E but maintained for FY25E. We maintain 'Accumulate' with a target price of Rs 440 (versus earlier Rs 430).

Click on the attachment to read the full report:

DISCLAIMER

This report is authored by an external party. BQ Prime does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of BQ Prime.

Users have no license to copy, modify, or distribute the content without permission of the Original Owner.