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BPCL — Motilal Oswal Maintains 'Neutral' Stance On The Stock; Citing Rising Capex, Muted GRM Outlook
Motilal Oswal reiterates its Neutral rating with an SoTP-based valuation of Rs 240/share.
07 Mar 2025, 09:29 AM IST 
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BPCL’s current 1-yr fwd. valuation of 1.3x P/B at par with the mean -1 S.D. It now trades on par with HPCL (on a 1-yr fwd. P/B basis) vs. a historical premium of 50%.
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While B{CL's valuation appears reasonable and strong marketing performance continues, a muted mid-term refining outlook (our FY26E/FY27E PAT are 17%/18% sensitive to every $1/bbl change in GRM) and commencement of new capex cycle emerge as key concerns. Hence, we reiterate our Neutral rating with an SoTP-based valuation of Rs 240/share.
