BQ Prime’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BQ Prime’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.
Nirmal Bang Report
Bharat Petroleum Corporation Ltd. reported standalone loss of Rs 62.91 billion for Q1 FY23, which was higher than our/street estimate of a loss of Rs 28.9 billion/Rs 46.4 billion- the higher loss was due to the higher-than-expected loss in the marketing segment and higher forex loss.
We have cut FY23E of BPCL by 42.8% and FY24E a tad. We have cut estimates based on the net impact of:
raised gross refining margin forecast, in line with the current elevated refinery margins and
pressure on retail margins in motor spirit/high speed diesel due to sustained increase in global MS/HSD spreads, compounding the pain caused by brent crude persisting above $100/barrel of oil.
We have also built in the impact of potential inventory losses of Rs 77.7 billion/Rs 78.5 billion in FY23E/FY24E, likely arising from a potential correction in oil/fuel prices, as per our declining oil price forecast, which is pinned to expectations of a global demand slowdown.
Click on the attachment to read the full report:
DISCLAIMER
This report is authored by an external party. BQ Prime does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of BQ Prime.
Users have no license to copy, modify, or distribute the content without permission of the Original Owner.
As a Subscriber you get
Stories
RECOMMENDED FOR YOU
POPULAR