BPCL gains as brokerage reiterates 'buy' rating

BPCL rose 1.49% to Rs 859 at 12:48 IST on BSE on reports a foreign brokerage reiterated 'buy' rating on the stock.

Meanwhile, the BSE Sensex was up 73.41 points, or 0.26%, to 27,803.62.

On BSE, so far 67,000 shares were traded in the counter, compared with an average volume of 1.09 lakh shares in the past one quarter.

The stock hit a high of Rs 864.95 and a low of Rs 845 so far during the day. The stock hit a record high of Rs 876.80 on 5 June 2015. The stock hit a 52-week low of Rs 539.65 on 23 June 2014.

The stock had outperformed the market over the past one month till 22 June 2015, rising 8.17% compared with 0.81% fall in the Sensex. The scrip had also outperformed the market in past one quarter, rising 16.35% as against Sensex's 1.88% fall.

The large-cap company has an equity capital of Rs 723.08 crore. Face value per share is Rs 10.

The brokerage raised the company's fiscal year (FY) 2016-17 earnings per share (EPS) by 6-14% and target price by 3% on higher gross refining margins (GRMs), as per reports. According to the brokerage, expansion in net auto fuel marketing margins over the next two years, and a more than 50% increase in refining EBITDA (earnings before interest, taxation, depreciation and amortization) over FY 2015-17, driven by higher capacity and upgradation will be key triggers for the stock, reports added.

BPCL's net profit fell 29.9% to Rs 2852.89 crore on 31.4% decline in net sales to Rs 51304.28 crore in Q4 March 2015 over Q4 March 2014.

The Government of India held 54.93% stake in BPCL (as per the shareholding pattern as on 31 March 2015).

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