MOSL: BPCL (Buy)-Adj. EBITDA below estimate; core GRM at USD3.3/bbl
BPCL: Adj. EBITDA below estimate; core GRM at USD3.3/bbl
(BPCL IN, Mkt Cap USD8.2b, CMP INR277, TP INR397, 43% Upside, Buy)
- BPCL reported EBITDA of INR33.5b in 2QFY19. However, excluding inventory gain of INR14.4b, core EBITDA stood at INR19.1b (-34% YoY, +1% QoQ), lower than our estimate of INR25.4b, primarily due to lower-than-expected core GRM and higher-than-expected opex. Forex loss stood at INR9.3b v/s INR588m in 2QFY18 and INR7.1b in 1QFY19. PAT declined 48% YoY (-47% QoQ) to INR12.2b (our estimate: INR16.5b).
- Core GRM stood at USD3.3/bbl (our estimate: USD3.9; 2QFY18: USD6.5; 1QFY19: USD4.2). Core GRM was lower at both Kochi and Mumbai refineries sequentially. Refinery throughput stood at 7.6mmt (+9% YoY, -1% QoQ).
- Domestic sales volume grew 3% YoY (-8% QoQ) to 10.1mmt in 2QFY19. Implied marketing margin inclusive of inventory gain stood at INR4.9/liter (+15% YoY, flat QoQ). Net of inventory gain, the marketing margin stood at INR4.5/liter.
Bharat Petroleum refines crude oil and markets petroleum products in India. Co. offers fuels and services, as well as lubricants, including automotive engine oils, gear oils, transmission oils, specialty oils, and greases; and liquid and gaseous fuels, illuminating oils, and other products from crude petroleum or bituminous minerals. Co. is engaged in the retailing of petrol, diesel, and kerosene. Co. also imports and exports fuel oil, naphtha, and base oil. Co. serves household and automobile sectors; public and private sectors; and various government establishments, such as defense, railways, state trading corporations, state electricity boards.
Motilal Oswal Financial Services Ltd. is a reputed name in Financial Services and Online Trading with group companies providing services such as Private Wealth Management, Retail Broking and Distribution, Institutional Broking, Asset Management, Investment Banking, Private Equity, Commodity Broking, Currency Broking, Principal Strategies & Home Finance.
Motilal Oswal Securities is a group company of Motilal Oswal Financial Service Limited which started as a stock trading company and has blossomed into well diversified firm offering a range of financial products and services. Motilal Oswal has built a reputation as the source for best stock trading company and this has taken a wealth of experience, knowledge and expertise, constantly working in tandem, over the years.
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