Shares of Hindustan Petroleum Corp. and Bharat Petroleum Corp. declined after the oil refiners posted wider-than-estimated losses in the first quarter.
That came as marketing margins eroded amid volatility in global crude prices, as well as on account of a foreign currency loss, according to their exchange filings over the weekend.
HPCL Q1 FY23 (Consolidated, QoQ)
Revenue up 15% at Rs 1,21,496 crore (Bloomberg estimate: Rs 1,18,237.1 crore).
Operating loss widened to Rs 19,490.2 crore from Rs 5,543 crore.
Net loss at Rs 8,557.12 crore vs profit Rs 2,018.45 crore (Bloomberg estimate: Rs 7,860-crore profit).
BPCL Q1 FY23 (Consolidated, QoQ)
Revenue up 12% at Rs 1,38,424.5 crore (Bloomberg estimate: Rs 1,40,952.1 crore).
Operating loss widened to Rs 23,166.8 crore from Rs 13,152.9 crore.
Net loss at Rs 6,147.94 crore vs profit Rs 2,560 crore (Bloomberg estimate: Rs 4,640.7-crore loss).
Shares of BPCL fell as much as 4.8% before ending 3.2% lower on Monday. Of the 38 analysts tracking the company, 28 maintain a 'buy', seven suggest a 'hold' and three recommend a 'sell', according to Bloomberg data. The 12-month consensus price target implies an upside of 24.1%.
Shares of HPCL fell as much as 6.2%, before closing 4.6% lower. Of the 37 analysts tracking the company, 26 maintain a 'buy', six suggest a 'hold' and five recommend a 'sell'. The 12-month consensus price target implies an upside of 23.7%.
Both stocks were downgraded to 'sell' by Kotak Institutional Equities, while Prabhudas Lilladher downgraded BPCL to 'hold'.
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