Moneycontrol
Last Updated : Aug 10, 2018 04:35 PM IST | Source: Moneycontrol.com

Buy Hindustan Petroleum Corporation; target of Rs 463: HDFC Securities

HDFC Securities is bullish on Hindustan Petroleum Corporation has recommended buy rating on the stock with a target price of Rs 463 in its research report dated 08 Aug 2018.

Broker Research @moneycontrolcom
 
 
live
  • bselive
  • nselive
Volume
Todays L/H
More

HDFC Securities' research report on Hindustan Petroleum Corporation

HPCL’s 1QFY19 EBITDA came in at Rs 31.91bn, up 96% YoY owing to 22% increase in GRM to USD 7.15/bbl (including inventory gains of USD 3.47/bbl). Marketing volumes were up 5% YoY while gross marketing margins were down 9.4% YoY to Rs 3.61/ltr. PAT stood at Rs 17.19bn up 86% YoY on lower other income at Rs 3.06bn (-46.4% YoY) and higher interest cost at Rs 1.91/bn (+33.5% YoY).

Outlook

We believe, with recent corrections most negatives seem to be priced in and valuations are  compelling.  Our  SOTP  target  is  Rs  463 (5x Jun 20E EV/e for standalone  refining,  8x  EV/e for marketing, 9x for pipeline and Rs 159/sh from other investments). Maintain BUY.

For all recommendations report, click here

Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies 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.

First Published on Aug 10, 2018 04:35 pm
Sections
Follow us on
Available On