OMC stock trades at attractive valuations after 40% rally in 2024; here’s how Anil Singhvi views it

BPCL share price target, BPCL share price, OMC stock: State-run oil marketing company (OMC) Bharat Petroleum Corporation Ltd (BPCL) shares on Wednesday, June 12, gained on Dalal Street. The PSU OMC stock rose 2.7 per cent to the day's high of Rs 623.85 on NSE in morning deals, extending gains for the second straight session. The counter closed at Rs 613.75, up 1.08 per cent on NSE.

The positive trend in the counter followed after Petroleum Minister Hardeep Singh Puri on Tuesday said as he took charge of the ministry for the second time that Bharat Petroleum Corporation is looking to build a new oil refinery to meet the rising demand for fuels like petrol and diesel.

He said BPCL is looking to build its fourth oil refinery in the country. "The details are being worked out," he said. BPCL operates refineries in Mumbai, Kochi in Kerala, and Bina in Madhya Pradesh. It aims to raise capacity for refined crude oil from 39 million tonnes per annum to 45 million tonnes and the new refinery is part of that plan.

OMC scrip trades at attractive valuations, says Anil Singhvi

Zee Business Managing Editor Anil Singhvi recommended a buy on BPCL futures with a stop loss at Rs 600 for targets of Rs 622, Rs 630, and Rs 642. The market guru noted the following points: 

• Stock trading at attractive valuations
• The company to invest 50,000 crore rupees for a new refinery plant
• The stock is set to trade ex-date for a 1:1 bonus on June 22

Should you buy, sell, or hold BPCL shares? HSBC maintains 'buy'

HSBC has maintained a buy call on BPCL with a target of Rs 910 per share.

BPCL Q4 results: How did Bharat Petroleum fare in March quarter?

Bharat Petroleum posted a 30 per cent fall in its March quarter net profit on lower refining margins and announced one bonus share for each share held.

Its consolidated net profit of Rs 4,789.57 crore in January-March -- the fourth quarter of the 2023-24 fiscal -- was compared to Rs 6,870.47 crore in the same period of the preceding financial year, according to a company's stock exchange filing.

In addition, the BPCL board has approved a 1:1 bonus issue -- one additional share for each share held which is et to turn ex-date on June 22. Read more 

BPCL shares: Past performance

YTD, BPCL shares have rewarded investors with a return of nearly 40 per cent, sharply outperforming a nearly eight per cent rise in the Nifty50 index.

(Disclaimer: The views/suggestions/recommendations expressed here in this article are solely by investment experts. Zee Business suggests its readers consult their investment advisers before making any financial decision.) 

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