Q3FY23 Preview: Bharat Petroleum Corporation: Sales seen at Rs827,010 million, PAT at Rs12,078 million

Result date: 30^th January, 2023

Recommendation: Buy

Target price: Rs424

Bharat Petroleum Corporation (BPCL) is likely to post a good performance in the December 2022 quarter, after a forgettable H1FY23, believe analysts at IIFL Securities.

Marketing margins are near to break even along with firm GRMs. Domestic marketing volume growth is expected to be strong YoY as prices were kept frozen. Against this backdrop, analysts at IIFL Securities expect BPCL to report YoY fall in earnings, but a well-above quarter as compared to H1FY23.

Gross refining margin of oil marketing companies is expected to be up 6-72% YoY as against SG GRM of US$6.4/bbl during the quarter. 

Source: IIFL Research