Shares of Bharat Petroleum Corporation Ltd. (BPCL) have corrected nearly 10% over the past year, even as the company’s earnings outlook remains firm, according to global brokerage firm Jefferies.Jefferies said that BPCL is currently trading at the same forward price-to-book (P/B) multiple as Hindustan Petroleum Corporation Ltd. (HPCL). However, investor concerns around BPCL entering a phase of elevated capital expenditure have weighed on its valuation.
The brokerage pointed out that HPCL faces relatively higher risks to its earnings, particularly from large new projects that typically take three to five years to stabilise after commissioning.
In addition, HPCL’s profitability could be more vulnerable in the event of any potential excise duty hikes by the government.Given these factors, Jefferies expressed a preference for BPCL over HPCL, maintaining a ‘Buy’ rating on the stock with a price target of ₹410.
The brokerage cited BPCL’s stronger earnings visibility and more favourable valuation as key reasons for its bullish stance.
The BPCL stock is now trading 0.55% lower on Tuesday at ₹314.05. The stock is up nearly 30% so far this year.
First Published: Aug 26, 2025 2:53 PM IS
