Prabhudas Lilladher's research report on HPCLHPCL reported Q3FY16 results ahead of our estimates; EBITDA of Rs22.4bn (PLe: Rs14.7bn) and PAT of Rs10.4bn (PLe: Rs6.6bn). Firm refining and marketing margins (despite marketing inventory loss of Rs4.2bn), supported earnings. Continued refining strength (Q4 GRM of US$8/bbl) and healthy marketing margins augurs well for steady operating performance. HPCL’s earnings are expected to grow at 35% CAGR FY15‐18E. We remain positive on HPCL, given 1) firm refining margins 2) no inventory loss, given stable crude oil prices and 3) healthy marketing profits. Maintain ‘BUY’. For all recommendations, 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.
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