BPCL share price declines after Q1 results; what should investors do- buy or wait?
₹380.95 against the previous close of ₹379.65 and soon fell over a per cent to the level of ₹373.25. The stock has gained 17 per cent in the last one year against a 19 per cent gain in the equity benchmark Sensex. BPCL Q1 results: On Wednesday (July 26), BPCL reported a standalone net profit for Q1FY24 at ₹10,550.88 crore.
The company had reported a loss of ₹6,263.06 crore in the year-ago period. Sequentially, net profit rose 62.9 per cent from ₹6,477.74 crore in Q4FY23. The company's total revenue from operations fell nearly 4.3 per cent on year to ₹1,28,256.65 crores during the quarter under review from ₹1,38,389.60 crore in Q1FY23.
Total income dropped to ₹1,28,748.65 crore in the first quarter. It stood at ₹1,38,831.25 crore in the year-ago period. The stock ended with a nominal gain of 0.13 per cent on Wednesday but fell 1.87 per cent on Thursday.
Read more: BPCL Q1 Results: Net profit at ₹10,550.88 crore versus loss year ago Brokerage firms have diverse views on the prospects of BPCL stock after the company's Q1 earnings. Brokerage firm Motilal Oswal Financial Services sees a limited upside in the share price. It has a 'neutral' view on BPCL stock with a target price of ₹390.
"BPCL posted GRM (gross refining margin) of $12.6/bbl in Q1FY24, below our estimate of $16.5/bbl, while implied marketing margin at ₹9.3/lit came in line with our estimates," Motilal said. The brokerage firm observed that the company's capex guidance for FY24 stands at ₹10,000 crore and is expected to increase to ₹15,000-17,000 crore in FY25. The company had approved a capital outlay of nearly ₹50,000 crore for the expansion of petrochemical capacity at Bina to 2.2ktpa (from 329mtpa currently) and refining capacity to 11mmtpa (from 7.8mmtpa
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