BPCL Intraday Buy Call

BPCL Intraday Buy CallTechnical Analyst Salil Sharma has maintained 'buy' rating on BPCL stock to achieve a target of Rs 555 in 1-2 trading sessions.

According to Mr. Sharma, interested traders can purchase the stock with a stop loss of Rs 535.

The shares of the company, on May 10, closed at Rs 540.30 on the Bombay Stock Exchange (BSE). The share price has seen a 52-week high of Rs 658 and a low of Rs 356 on BSE.

Current EPS & P/E ratio stood at 123.43 and 4.36 respectively.

According to the sources, Bharat Petroleum Corp (BPCL) has set a cut-off bid of 8.30% at its oil bond sale.

BPCL sold the 8.20% 2023 bonds at Rs 99.20 each, and one of the sources stated that the company kept back bids of Rs 494 crore.

The company was looking to lift up Rs 750 crore through the sale. The federal administration issues oil bonds to state-owned companies to compensate them for selling their goods at subsidized rates.

As part of the administration's cash compensation agreement to bail out the oil marketing companies, BPCL will receive 21% from the complete subsidy of Rs 14000 crore.

The cash subsidy of Rs 2800 crore will be offered to BPCL by the next 3-4 months.

According to company's official, its net under recovery will be Rs 1100 crore during the existing financial year.

But, the official said that, at current rates the under recovery is approximated to be Rs 90000 crore in FY11.