BPCL Forex loss + No cash compensation = Net loss :Emkay,

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BPCL

Forex loss + No cash compensation = Net loss

ACCUMULATE

CMP: Rs 623                                       Target Price: Rs 684

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n     BPCL reported results which were below our estimates with EBIDTA loss at Rs26.9bn and Net loss at Rs.32.2bn, revenue grew by 19.4% YoY to Rs.423bn

n     Direct market sales grew by 6.7% YoY to 7mmt, while crude throughput declined marginally by 0.4% YoY to 5.6mmt

n     Average gross refining margin for Q2 FY12 was at $1.6/bbl as compared to $2.8/bbl, declined by 41% YoY and 45% sequentially

n     Valuation looks reasonable at 1.2x FY13E P/BV, maintain Accumulate rating on the stock with target price of Rs. 684