Buy Bharat Petroleum Corporation, target price Rs 390: JM Financial

JM Financial has buy call on Bharat Petroleum Corporation with a target price of Rs 390.The current market price of Bharat Petroleum Corporation is Rs 346.45.

Bharat Petroleum Corporation, incorporated in the year 1952, is a Large Cap company (having a market cap of Rs 75316.46 Crore) operating in Gas & Petroleum sector.

Bharat Petroleum Corporation key Products/Revenue Segments include Petroleum Products, Oil Crude, Other Operating Revenue, Subsidy for the year ending 31-Mar-2022.

Financials
For the quarter ended 30-09-2022, the company has reported a Consolidated Total Income of Rs 115167.14 Crore, down -5.14 % from last quarter Total Income of Rs 121411.07 Crore and up 12.25 % from last year same quarter Total Income of Rs 102596.50 Crore. Company has reported net profit after tax of Rs -834.73 Crore in latest quarter.

The company’s top management includes Mr.Arun Kumar Singh, Mr.Gudey Srinivas, Mr.Gopal Krishna Agarwal, Mr.Ghanshyam Sher, Prof. (Dr)Bhagwati Prasad Saraswat, Dr.(Mrs.)Aiswarya Biswal, Mr.Pradeep Agrawal, Mr.Sanjay Khanna, Mr.Vetsa Ramakrishna Gupta, Mr.Suman Billa. Company has K S Aiyar & Co. as its auditors. As on 31-12-2022, the company has a total of 217 Crore shares outstanding.

Investment Rationale
The brokerage maintains a BUY rating on BPCL (TP of INR 390) on valuation grounds. OMCs are trading at attractive valuations; BPCL at 1.3x FY22 P/B. Optimism on OMCs will be contingent on crude sustaining below ~USD 80/bbl and the government giving them significant compensation for FY23 auto-fuel under-recoveries.

Promoter/FII Holdings
Promoters held 52.98 per cent stake in the company as of 31-Dec-2022, while FIIs owned 13.17 per cent, DIIs 21.79 per cent.