BPCL gains after a foreign brokerage raises target price

BPCL rose 1.74% to Rs 732 at 13:00 IST on BSE after reports a foreign brokerage raised the target price of the stock.

Meanwhile, the S&P BSE Sensex was down 4.15 points or 0.01% at 28,159.14.

On BSE, so far 51,806 shares were traded in the counter as against average daily volume of 1.54 lakh shares in the past one quarter.

The stock hit a high of Rs 738.40 and a low of Rs 722 so far during the day. The stock had hit a record high of Rs 777.15 on 10 November 2014. The stock had hit a 52-week low of Rs 315 on 8 January 2014.

The stock had outperformed the market over the past one month till 18 November 2014, rising 8.02% compared with the Sensex's 7.87% rise. The scrip had also outperformed the market in past one quarter, gaining 10.93% as against Sensex's 6.72% rise.

Recent fall in crude oil prices had perked up the prices of the stock. . Lower crude oil prices could reduce under-recoveries of PSU OMCs on domestic sale of LPG and kerosene at controlled prices. The government has already freed pricing of petrol and diesel.

The large-cap PSU oil marketing firm has an equity capital of Rs 723.08 crore. Face value per share is Rs 10.

The brokerage reportedly cites sharp decline in crude oil prices and diesel deregulation as key reason for the higher target price. LPG subsidies too should structurally decline. It also reportedly said consensus will shun the price-to-book based methodology to value these companies to earnings-based approach.

Brent crude oil futures were steady after data showed Saudi Arabia increased crude exports in September despite signs of an oversupplied market. Brent for January settlement was up 11 cents to $78.58 a barrel. The contract had lost 84 cents to settle at $78.47 a barrel yesterday, 18 November 2014.

BPCL reported consolidated net loss of Rs 994.60 crore in Q2 September 2014 compared with consolidated net profit Rs 256.50 crore in Q2 September 2013. Total income rose 61.2% to Rs 39568.60 crore in Q2 September 2014 over Q2 September 2013.

The Government of India holds 54.93% stake in the firm as at 30 September 2014.

Powered by Capital Market - Live News