BPCL gains 5%, reacting to fourth quarter results, analyst’s coverage

Shares of Bharat Petroleum Corporation gained 5% on Friday, May 10, reacting to the company’s fourth quarter results. Brokerage firm Citi also maintained a ‘buy’ rating on the stock with a target of ₹760 per share.

At 11.25 am, the top Nifty 50 gainer was up nearly 4.4% at ₹618 apiece.

The company reported a net profit of ₹4,224 crore compared to an estimate of ₹5,460 crore. Its revenue was in line with Street expecations of ₹1.16 lakh crore.

The company’s earnings before interest, tax, depreciation and amortarisation (EBITDA) were slightly higher than the ₹9,016 crore estimate at ₹9,213 crore. Its EBITDA margin came in at 7.9%, meeting estimates of 7.8%.

The board also approved the issue of one bonus share for every share held. The record date for the bonus issue was fixed for June 22, 2024. It also recommended a final dividend of ₹21 per share or ₹10.5 per share post-bonus.

Citi in its coverage on the stock said the company reported a refining-led miss in the fourth quarter, with a recovery in EBITDA when compared to the previous quarter.

The brokerage said the company’s pre-tax profit was correspondingly 20% below estimates and its net income was 39% below estimates because of ₹1,800 crore impairment of investment in its arm. However, the earnings per share for the entire 2023-24 fiscal was very strong at ₹125 per share, it said.

BPCL shares have gained 60.3% in the last six months.

Also Read: HSBC downgrades Tata Power but raises target to ₹300 on future earnings growth prospects