February 02, 2017 / 15:31 IST
IOC’s 3QFY17 EBITDA was Rs 79.5bn. Interest and depreciation costs have increased owing to Paradeep refinery. PAT was Rs 40.0bn. Results are not comparable with previous period owing to inventory and forex impacts. Other expense (above EBITDA) includes Rs 19.7bn for liabilities towards entry tax.
OutlookWe are structurally positive on IOC owing to its diversified business model, ramp-up of Paradeep refinery and possible upside in marketing segment. Our SOTP target is Rs 425 (4.0x FY19E EV/e for standalone refining, 6x EV/e for marketing, 9x EV/e for pipeline, 6x for petchem and Rs 84/sh from investments). BUY.
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