BPCL Q1 Results Review - Rights Issue, Capex Cloud The Beat: Nirmal Bang

"BQ Prime’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BQ Prime’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..Nirmal Bang Report.Key PointsBharat Petroleum Corporation Ltd.’s Q1 FY24 beat (26% in profit after tax) was driven by 21% beat in marketing Ebitda per tonne at Rs 8,417, 2% beat in total marketing sales volume - 13.1 million tonnes and 4.8% beat in refining throughput - 10.4 million tonnes. Gross refining margin at $12.64/barrel of oil was 12.8% below estimate due to miss in Mumbai/Bina/Kochi GRMs by 29.6%/16.7%/10.9%.We have raised estimates by 57%/17.6% for FY24E/FY25E based on the beat in Q1 FY24 results and higher retail margin/refining throughput assumptions.We have raised target price only a tad to Rs 401 as we have cut the target price-to-earning from six times to 5.5 times on June-25E. This is due to the potential dilution in earnings from the proposed rights issue of up to Rs 180 billion for energy transition/security projects and 2040 net-zero target.We maintain 'Accumulate' rating on BPCL based on the muted risk-reward as the stock has rallied 14% year-to-date. We await clarity on rights issue timeline, pricing, size and specific use of the proceeds..Click on the attachment to read the full report:.BPCL Q1 Results Review - Marketing Margins A Major Earning Driver: Dolat Capital.DISCLAIMERThis 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."

BPCL Q1 Results Review - Rights Issue, Capex Cloud The Beat: Nirmal Bang

Peak margins, long gestation capex limit triggers.

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BPCL Q1 Results Review - Rights Issue, Capex Cloud The Beat: Nirmal Bang

Peak margins, long gestation capex limit triggers.

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