Feb 15, 2017 01:38 PM IST | Source: Moneycontrol.com
Hold MRPL; target of Rs 107: Centrum
Centrum recommended hold rating on MRPL with a target price of Rs 107 in its research report dated February 07, 2017.
Centrum's research report on MRPL
Core GRM could have been higher, but owing to nozzle breakdown during planned plant shutdown for 36 days in Phase-I (restored now) and lower petrochemical production dragged distillate yield and adversely impacted its ability to achieve higher GRM. Currently, MRPL has indicated a core GRM of +USD6 to 7/bbl in Q4FY17 until Jan at par with benchmark Singapore GRM.
We downgrade Mangalore Refinery and Petrochemicals Limited (MRPL) to Hold with a revised TP of Rs 107 (earlier TP of Rs 97). The company reported a weak core GRM of USD5.1/bbl vs USD5.5/bbl in Q2FY17 vs benchmark Singapore GRM of USD6.7/bbl. The core GRM was weak due to non-optimum utilisation of units whereas reported GRM of USD7.4/bbl was strong owing to creeping of inventory gains.
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