BPCL slips after foreign brokerage maintains underperform rating

BPCL fell 1.57% to Rs 887.60 at 14:06 IST on BSE on reports that a foreign brokerage has maintained underperform rating on the stock.

Meanwhile, the BSE Sensex was down 406.65 points, or 1.47%, to 27,201.17.

On BSE, so far 1.14 lakh shares were traded in the counter, compared with an average volume of 1.39 lakh shares in the past one quarter.

The stock hit a high of Rs 891.90 and a low of Rs 870 so far during the day. The stock hit a record high of Rs 987 on 23 July 2015. The stock hit a 52-week low of Rs 598.35 on 26 September 2014.

The stock had underperformed the market over the past one month till 20 August 2015, sliding 6.42% compared with 2.86% fall in the Sensex. The scrip had, however, outperformed the market in past one quarter, rising 14.68% as against Sensex's 0.82% decline.

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

The foreign brokerage has reportedly pointed out in a research report that weak global crude oil prices may force write-off in value of BPCL's deepwater assets in Brazil and Mozambique. The brokerage also is worried about BPCL's recent market share loss in diesel, possibly to private players. The research report also notes that there is potential of large inventory loss arising from fall in Brent crude price in Q2 September 2015 so far. The brokerage has also reportedly pointed out decline in all key refining product spreads as another near term concern for the stock.

BPCL's net profit rose 95.37% to Rs 2376.16 crore on 22.88% decline in total income to Rs 52296.12 crore in Q1 June 2015 over Q1 June 2014.

BPCL is a state-run oil refining-cum-marketing company. The Government of India holds 54.93% stake in BPCL (as per the shareholding pattern as on 30 June 2015).

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