Feb 15, 2017 04:58 PM IST | Source: Moneycontrol.com
Hold Hindustan Petroleum Corp; target of Rs 614: Edelweiss
Edelweiss recommended hold rating on Hindustan Petroleum Corporation with a target price of Rs 614 in its research report dated February 13, 2017.
Edelweiss' research report on Hindustan Petroleum Corporation
Hindustan Petroleum Corporation (HPCL) reported Q3FY17 PAT of INR 15.9bn (up 127% QoQ), which was 6% below estimates. Earnings miss was primarily on account of lower than expected GRM of USD6.4/bbl (Edel estimate: USD7/bbl), while throughput came 4% ahead. During Q3FY17, OMCs recovered 0.5% in market share from private players.
Q4FY17 appears mixed as: 1) QTD Singapore benchmark, at USD6.8/bbl, is flat QoQ; and 2) while QTD diesel margin is down 5%, petrol margin is up 11% QoQ. The highly profitable Bhatinda refinery will continue to drive consolidated earnings. Maintain ‘HOLD’ with target price of INR 614. HPCL offers an attractive dividend yield of 4%.
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