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.
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)