6517 Investors following Chennai Petro. Share this News with them.
0
Like this story, share it with millions of investors on M3
Buy Chennai Petroleum, target of Rs 459: IndiaInfoline
IndiaInfoline has maintained its buy rating on Chennai Petroleum Corporation with a target price of Rs 459. CPCL is significantly undervalued compared to global as well as regional peers.
IndiaInfoline has maintained its buy rating on Chennai Petroleum Corporation with a target price of Rs 459 in its May 16, 2008. "CPCL reported a GRM of USD 9.6 per barrel in Q4 FY08 as against USD 6.4 per barrel in Q4 FY07, as increase in product prices outpaced rise in crude oil prices. Over the last one year the company has improved its distillate yield by about 150bps and has also increased intake of sour crude by about 100bps. These initiatives have been a key factor in strong GRM trends for the company."
"CPCL is significantly undervalued compared to global as well as regional peers. It is trading at 5.4x FY09E earnings of Rs 64.6 and 3.5x EV/EBIDTA. We believe with increase in complexity of refinery over the next one year through debottlenecking should help CPCL maintain its GRMs above its long term average even if global GRMs head for a sharp fall. We maintain BUY on the stock with a target price of Rs 459," an upside of 31%," says IndiaInfoline's research report.
Disclaimer: The views and investment tips expressed by investment experts on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
