External broker reports(aggregated public sources), HDFC Securities

HDFC Securities

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External broker reports(aggregated public sources)

HDFC securities is the best online trading platform for stocks, IPOs, mutual fund in India. 

Content available is external broker reports authored by a third party outside the Smartkarma network and has been aggregated by an online aggregator through publicly available sources and is displayed by Smartkarma in this format for user's convenience and general informational purposes only. Content does not constitute investment or financial advice and Smartkarma makes no representation or warranty regarding its accuracy or contents. Original third party author retains all copyright and other proprietary rights in the content. Access or use of third party links not controlled by Smartkarma are at the user's own risk.

Equity Bottom-Up

<ul><li>Bharat Petroleum Corporation (BPCL) stock has rallied ~35% and has outperformed the Sensex by ~26% over the last 3M, driven by improving auto fuel marketing margins as Brent crude price declined by ~20% to USD 76/bbl over the same period and strong refining margins as diesel and jet fuel crack spreads averaged USD 23-24/bbl.</li><li>We downgrade BPCL to a REDUCE from a BUY, with a target price of INR 475/sh, owing to the risk of (1) lower auto-fuel marketing margins because of either a bounce-back in crude oil price or retail price cuts ahead of general elections and (2) moderation in refining margins.</li><li>Refining margin could moderate from recent highs on new supply: The ramp-up of &gt;1.2mbpd of new refining capacity in the Middle East and China over the next few months could adversely impact the higher-than-average transportation fuel crack spreads in the near/medium term, negatively impacting contribution from refining for BPCL.</li></ul><p><em>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.</em></p>

Bharat Petroleum Corporation (BPCL) stock has rallied ~35% and has outperformed the Sensex by ~26% over the last 3M, driven by improving auto fuel marketing margins as Brent crude price declined by ~20% to USD 76/bbl over the same period and strong refining margins as diesel and jet fuel crack spreads averaged USD 23-24/bbl.We downgrade BPCL to a REDUCE from a BUY, with a target price of INR 475/sh, owing to the risk of (1) lower auto-fuel marketing margins because of either a bounce-back in crude oil price or retail price cuts ahead of general elections and (2) moderation in refining margins.Refining margin could moderate from recent highs on new supply: The ramp-up of &gt;1.2mbpd of new refining capacity in the Middle East and China over the next few months could adversely impact the higher-than-average transportation fuel crack spreads in the near/medium term, negatively impacting contribution from refining for BPCL.Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

BPCL: Unfavourable risk-reward. Downgrade to REDUCE