{"id":295477,"date":"2019-10-09T12:00:38","date_gmt":"2019-10-09T06:30:38","guid":{"rendered":"http:\/\/infralive.com\/web\/?p=295477"},"modified":"2019-10-09T12:00:38","modified_gmt":"2019-10-09T06:30:38","slug":"bpcl-ratings-reiterate-sell-amid-adverse-risk-reward-balance","status":"publish","type":"post","link":"https:\/\/infralive.com\/web\/bpcl-ratings-reiterate-sell-amid-adverse-risk-reward-balance\/","title":{"rendered":"BPCL ratings: Reiterate \u2018Sell\u2019 amid adverse risk-reward balance"},"content":{"rendered":"<p>The recent outperformance of BPCL against other OMCs is pricing in upside from a potential open offer in lieu of control premium that maybe paid by a strategic buyer in a scenario of privatisation. Our reverse valuation also suggests that the market has already ascribed 10X EV\/Ebitda to BPCL\u2019s marketing business, at a premium to global M&amp;A in the fuel retailing business, while ignoring differences with developed markets. Reiterate \u2018Sell\u2019 amid adverse risk-reward balance.<\/p>\n<p>The recent sharp rally in BPCL stock and its outperformance over other OMCs is effectively pricing in upside to minority shareholders from a potential open offer, in our view, in lieu of a control premium that may be paid by a strategic buyer to acquire the government\u2019s majority stake in BPCL.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>The recent outperformance of BPCL against other OMCs is pricing in upside from a potential open offer in lieu of control premium that maybe paid by a strategic buyer in a scenario of privatisation. Our reverse valuation also suggests that the market has already ascribed 10X EV\/Ebitda to BPCL\u2019s marketing business, at a premium to global M&amp;A in the fuel retailing business, while ignoring differences with developed markets. Reiterate \u2018Sell\u2019 amid adverse risk-reward balance. The recent sharp rally in BPCL stock and its outperformance over other OMCs is effectively pricing in upside to minority shareholders from a potential open offer, [&hellip;]<\/p>\n","protected":false},"author":44,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[130,195,138],"tags":[],"class_list":["post-295477","post","type-post","status-publish","format-standard","hentry","category-newspapers","category-oil-gas-the-financial-express","category-the-financial-express"],"acf":[],"_links":{"self":[{"href":"https:\/\/infralive.com\/web\/wp-json\/wp\/v2\/posts\/295477","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/infralive.com\/web\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/infralive.com\/web\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/infralive.com\/web\/wp-json\/wp\/v2\/users\/44"}],"replies":[{"embeddable":true,"href":"https:\/\/infralive.com\/web\/wp-json\/wp\/v2\/comments?post=295477"}],"version-history":[{"count":0,"href":"https:\/\/infralive.com\/web\/wp-json\/wp\/v2\/posts\/295477\/revisions"}],"wp:attachment":[{"href":"https:\/\/infralive.com\/web\/wp-json\/wp\/v2\/media?parent=295477"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/infralive.com\/web\/wp-json\/wp\/v2\/categories?post=295477"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/infralive.com\/web\/wp-json\/wp\/v2\/tags?post=295477"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}