Nomura Lifts BPCL Target Price as Refining Upcycle Favors Indian Oil Giant

Shares of Bharat Petroleum Corporation (BPCL) rose over 2 percent to Rs 316.40 in opening trade, driven by easing Brent crude prices and a fresh 'Buy' call from Nomura.

The brokerage firm raised its target price for BPCL to Rs 395, citing strong refining upcycle and the company's ability to offset losses in the fuel marketing business with higher refining margins.

Nomura noted that BPCL has consistently reported high refining gross margin (GRM) among oil marketing companies due to its relatively modern assets and flexibility to produce high-value middle distillates.

The brokerage expects BPCL's favorable refining environment to continue, citing damage to Russian refining capacities and decreasing China refinery run rates.