Buy BPCL, target price Rs 495: Emkay

has buy call on Bharat Petroleum Corporation Ltd. with a target price of Rs 495.0. The current market price of Bharat Petroleum Corporation Ltd. is Rs 467.5 .

BPCL, incorporated in the year 1952, is a large cap company with a market cap of Rs 102,367.04 crore, operating in gas & petroleum sector.

Bharat Petroleum Corporation's key products/revenue segments include petroleum products, oil crude, other operating revenue, subsidy for the year ending 31-Mar-2020.

Investment rationale
The brokerage says, 61.65 per cent stake sale in NRL is an important milestone in BPCL's disinvestment process, and cash proceeds may also be paid to shareholders as a special dividend of Rs 40-50/share in the next 1-2 months.

Financials
For the quarter ended 31-12-2020, the company has reported a consolidated total income of Rs 66,809.47 crore, up 34.39 % from last quarter's total income of Rs 49,713.32 crore and down 11.54 % from last year same quarter's total income of Rs 75,527.70 crore. Company has reported net profit after tax of Rs 2,627.45 crore in latest quarter.

Promoter/FII Holdings
Promoters held 53 per cent stake in the company as of March 31, 2020, while FIIs held 12.3 per cent, DIIs 19.6 per cent and public and others 15.1 per cent.