Bharat Petroleum Corporation Ltd (BPCL) shares soared as much as 10 per cent in the early trade on Friday after the oil marketing company reported better-than-expected financial results for the quarter ended March 31, 2016. BPCL on Thursday reported a 10.6 per cent drop in its March quarter net profit on back of slump in oil prices. Net profit in January-March quarter fell to Rs 2,549.08 crore from Rs 2,852.89 crore in the same period a year ago.
At 11.58 am, shares of BPCL were trading 8.71 per cent up at Rs 1007.05. The scrip opened at Rs 953 and has touched a high and low of Rs 1023.65 and Rs 952, respectively, in trade. Later, the share price of the company closed 9.12 per cent up at Rs 1010.85.
According to a Japanese brokerage firm Nomura, BPCL’s net income and reported EBIDTA were both ahead of estimates.
Sales were down to Rs 44,197.09 crore in the fourth quarter of 2015-16 fiscal from Rs 51,346.12 crore, a year-ago. The company turned 6.22 million tonnes of crude oil into fuel, up from 6.11 million tonnes in the fourth quarter of 2014-15. Fuel sales also rose to 9.78 million tonnes from 8.69 million tonnes. Exports were however flat at 0.54 million tonnes.
Nomura maintained ‘Buy’ rating on BPCL shares with a target price of Rs 1,145.
Kotak Institutional Equities expects BPCL’s profitability to remain robust, led by steady marketing margins, expected recovery in refining margins from current lows and commissioning of a project in Kochi, in southern India. The brokerage house also has ‘Buy’ rating on BPCL with target price of Rs 960.
(With agency inputs)