BPCL Q4 Review - Play On Privatisation: ICICI Securities
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ICICI Securities Report
Bharat Petroleum Corporation Ltd.’s Q4 FY21 recurring profit stood at Rs 58 billion versus loss in Q4 FY20 driven by inventory gain versus loss and higher other income.
FY21 recurring earnings per share is up 3.9 times YoY driven by the same factors as in Q4 and 37% YoY rise in auto fuel net marketing margin.
We have kept FY22E earnings per share and target price unchanged despite FY22-to-date net marketing margin and gross refining margin being well below our FY22 estimates.
We are optimistic that price hike required to boost net margin to our FY22 estimate of Rs 2.5/litre would be made given the government’s track record.
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