BPCL’s Privatisation Bid, GRM Key To Outlook: ICICI Securities  
The BPCL is displayed at a fuel station in Mumbai. (Photographer: Vivek Prakash/Bloomberg)

BPCL’s Privatisation Bid, GRM Key To Outlook: ICICI Securities  

BQ Blue’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BloombergQuint’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.

ICICI Securities Report

We resume our coverage on Bharat Petroleum Corporation Ltd. on a positive note and target price of Rs 544 per share (27% upside).

Our target price of Rs 544 assumes successful bid price in privatisation of Rs 609 per share (eight times FY22E enterprise value/Ebitda) on 56% of investors’ holding and Rs 462 per share (six times FY22E EV/Ebitda) on balance.

We estimate FY22E core gross refining margin recovering to $3.5/barrel of oil from $1.5/barrel of oil in nine months FY21, but net marketing margin fall to Rs 2.5/litre from Rs 3.07/litre in FY21E.

We expect global demand recovery and refinery closures to drive GRM recovery.

Click on the attachment to read the full report:

ICICI Securities BPCL Company Update.pdf

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