Large Cap PSU Stock Gets Sell Call Despite 82% YoY Growth In Q3FY24 Profit; Prabhudas Lilladher Recommends

Shares of state-owned refiner Bharat Petroleum Corporation Ltd (BPCL) hit one year high on Monday (January 29) after the company posted an 82.11% year-on-year (YoY) jump in its consolidated net profit at Rs 3,181.42 crore for the quarter ended 31st December 2023 (Q3 FY24). The company's profit stood at Rs 1,747.01 crore in the same period last fiscal.

Today, BPCL shares traded at a new 52-week high value of Rs 501.45 per share. At 2:39 pm IST today, the stock was up 4% at Rs 492.50 per share. At this price, the company has a market cap of Rs 1,06,824.85 crore. The company's revenue from operations fell 2.52% YoY to Rs 1,29,984.84 crore from Rs 1,33,347.51 crore in the year-ago period. Although, it was up 11.42% QoQ.

The fuel retailer's outstanding debt of the company stood at Rs 42,064.15 crore in the quarter under review compared to Rs 64,260.73 crore in the same period last fiscal. In terms of revenue generation from different business verticals, BPCL's downstream petroleum recorded Q3FY24 revenue at Rs 1,29,946.60 crore, and its exploration & production of hydrocarbons segment posted Q3 revenue of Rs 38.24 crore.

BPCL share price performance:

In the last six months, BPCL shares have gained 32.47%, while the stock is up 47.89% in the last three months. The last one-year, 2-year, and 3-year returns from the shares of BPCL have gained 46.93%, 29.18%, and 28.88% respectively. In the last two weeks, the stock has gained 7.53%.

BPCL Shares Get "Sell" Call:

Brokerage firm Prabhudas Lilladher Pvt Ltd has given a "Sell" rating to the BPCL stock. Swarnendu Bhushan - Co-Head of Research, Prabhudas Lilladher Pvt Ltd said, "BPCL reported better than expected results with EBITDA/PAT of Rs 62.3bn (-52%QoQ; PLe:Rs59.9 bn) and Rs34bn (-60%QQ; PLe: Rs29.5bn)." As per the brokerage house the stock is currently trading at 1.5/1.3x FY25/26 PBV.