After 42% rally in 2 months, here's why analysts are now cautious on BPCL

Last week, international credit rating agency Moody's warned of downgrading Bharat Petroleum Corporation (BPCL) to Ba1, if the government goes ahead with privatisation.

Shares of Bharat Petroleum Corporation (BPCL) have surged around an impressive 38 per cent since September 3, mainly on the news of privatisation. In the past two months, the stock has jumped around 42 per cent.

As per reports, the government is considering a proposal to sell India's second-largest state refiner and fuel retailer BPCL to foreign and private firms. And, while a number of analysts have given a thumbs up to the privatisation plan and have upgraded the stock to buy, there are others who have turned cautious on the company. 

For instance, analysts at Centrum Broking note