Bharat Petroleum Corporation (BPCL) share price touched a 52-week high of Rs 488, rising over 3 percent in the morning trade on May 27, a day after it reported an over four times increase in standalone profit at Rs 11,940.1 crore for the quarter ended March 31, 2021. It reported a profit of Rs 2,777.6 crore in the previous quarter.
The March quarter profit included a one-time gain of Rs 6,992.9 crore. Revenue from operations stood at Rs 98,755.62 crore up 14.1 percent from Rs 86,579.95 crore in the December quarter.
The board approved a final dividend of Rs 58 a share, which includes a one-time special dividend of Rs 35 per equity share.
The total dividend amounts to Rs 12,581.66 crore, including a special dividend of Rs 7,592.38 crore.
Here is what brokerages have to say about the stock and the company after the March quarter earnings announcement:
Morgan Stanley | Rating: Overweight | Target: Rs 480
The core earnings were largely in line. The company has operationally outperformed its peers on utilisation rates. It gained market share in retail fuel marketing.
The progress on divestment, demand recovery will be the key, while retail fuel price hikes and dividend drives positive stance.
Jefferies | Rating: Buy | Target: Raised to Rs 520
The company posted in-line core EBITDA, with inventory gains driving a large beat. The marketing volume growth was faster than the industry growth.
The marketing profitability to be restored as retail price hikes continue. The dividend of Rs 58 per share and low capex were a pleasant surprise. Jefferies cut FY22/23 EBITDA by 8/5 percent with privatisation the key for further upside.
JPMorgan | Rating: Overweight | Target: Rs 550
The large one-time dividend was the main highlight of a strong quarter. The progress on privatisation is the key. The relative outperformance of OMCs versus benchmark should continue.
At 0923 hours, Bharat Petroleum Corporation was quoting at Rs 478.60, up Rs 7.30, or 1.55 percent on the BSE.
Disclaimer: The above report is compiled from information available on public platforms. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.