Nearly two-thirds of the analysts who track BPCL have expressed optimism over the stock's future prospects by reiterating their buy recommendation on the stock. Shares of BPCL are among the top gainers on the Nifty 50 index.

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BPCL had reported a net profit jump of nearly 2.5 times on a sequential basis to Rs 6,477 crore in the March quarter, led by a recovery in fuel marketing margin. Revenue remained flat but came in ahead of expectations. Other parameters like net profit, operating profit and margin also surpassed consensus expectations.

Brokerage firm Morgan Stanley reiterated its overweight rating on the stock. However, its price target of Rs 390 only implies a potential upside of 8 percent from Monday's closing levels. The brokerage highlighted BPCL's strong refining margin performance, which at $21 per barrel was well ahead of street expectations of $12 per barrel.

Morgan Stanley expects the strong margin performance to continue as strong oil product demand and crude discounts support the recovery.

Investec has maintained a hold rating on BPCL but raised its price target to Rs 375 from Rs 320 earlier. It expects BPCL's refining margin to average around $6-$7 per barrel over financial year 2024-2025, while increasing the company's Earnings per Share (EPS) estimates by 11 percent and 10 percent for financial year 2024-2025.

The brokerage expects the oil prices to remain above the $80 per barrel going forward.

Jefferies also has a buy rating on BPCL with a price target of Rs 445, which points to a potential upside of 23 percent from Monday's closing levels. The brokerage expects weakness in refining business to reverse, which would in-turn benefit the company. It also expects the inflated marketing margin to normalise.

Shares of BPCL are trading 2 percent higher at Rs 368.60. The stock has risen by 10.3 percent during 2023 so far.

(Edited by : Rukmani Krishna)