Motilal Oswal - Bharat Petroleum Corporation Limited (BPCL) MOSL: BPCL (Downgrade to Neutral): Reported GRM poor, marketing margin healthy

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Motilal Oswal

Swarnendu Bhushan

EUR 120.00 For Business Accounts Only

MOSL: BPCL (Downgrade to Neutral): Reported GRM poor, marketing margin healthy

BPCL: Reported GRM poor, marketing margin healthy

(BPCL IN, Mkt Cap USD15.3b, CMP INR502, TP INR533, 6% Upside, Downgrade to Neutral)

Higher-than-estimated marketing margin, despite a lower GRM, resulted in EBITDA of INR27.6b (-18% YoY), ahead of our estimate. Total inventory loss stood at INR0.26b (refining loss at INR1.8b and marketing gain at INR1.5b). EBITDA adjusted for inventory and one-offs stood at INR27.9b (+46% YoY).
The company reported a forex loss of INR3.9b and PBT of INR16.6b.
PAT was up 40% YoY at INR17.1b, as BPCL recognized INR5.8b as excess tax provision from previous years. Adj. PAT (for tax write-back) stood at INR11.3b.

11/11/2019 10 EN

Underlying

Bharat Petroleum Corporation Limited

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.

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INE029A01011 National Stock Exchange of India India

Provider

Motilal Oswal

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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Analysts

Swarnendu Bhushan

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MOSL: BPCL (Downgrade to Neutral): Reported GRM poor, marketing margin healthy

BHARAT PETROLEUM sees an upgrade to Slightly Positive due to a better fundamental star rating

MOSL: BPCL (Buy) - Better-than-expected result; reiterate it as the preferred pick in OMCs

Monthly LMI Update Independent Investment Research

MOSL : HOME FIRST FINANCE COMPANY: Earnings in-line with sustained improvement in asset quality

MOSL : SHOPPERS STOP: Ticking the right boxes

MOSL : ERIS LIFESCIENCES: Enhanced efforts toward product launch-related activities

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