Buy HPCL; target of Rs 507: Motilal Oswal

Trade

• Watchlist
• Portfolio
• Message
• Set Alert

 

 

Choose Stock Exchange: BSE LIVE NSE LIVE

26 Aug, 2025 12:21

Volume

Todays L/H

More

×

Motilal Oswal's research report on HPCL

HPCL’s reported EBITDA of INR29.2b (+1% YoY, -7% QoQ) in 4QFY18 was slightly higher than our estimate of INR27.8b. However, EBITDA adjusted for inventory gains stood at INR27.7b (-2% YoY, +64% QoQ), significantly above our estimate of INR22.4b, primarily led by higher GRM and lower inventory gains.

Outlook

We believe that this sharp correction in stock prices offers an attractive opportunity to add OMCs. HPCL is trading at 8.2x FY20E EPS of INR37.9 and 6.3x FY20E EV/EBTIDA. We value refining at 6x EV/EBITDA, marketing at 8x EV/EBITDA and pipeline at 7.5x EV/EBITDA, and reiterate Buy with a target price of INR507.

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.

Read More