Buy Mangalore Refinery; target of Rs 130: ICICI Direct

ICICI Direct is bullish on Mangalore Refinery has recommended buy rating on the stock with a target price of Rs 130 in its research report dated May 17, 2018.

Broker Research

May 24, 2018 / 18:18 IST

26 Aug, 2025 12:21

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ICICI Direct's research report on Mangalore Refinery

MRPL reported its Q4FY18 numbers, which were above our estimates on the revenue front with higher-than-expected crude throughput. Revenues increased 7.7% QoQ to Rs 18753.1 crore and came in largely above our estimate of Rs 17186.9 crore. Crude throughput was at 4.3 MMT in Q4FY18 vs. 4.5 MMT in Q3FY18 and came in above our estimate of 4 MMT Reported GRMs during the quarter came in at US$7.9/bbl, below our estimate of US$8.5/bbl. Reported GRMs include inventory gains, which was at US$1.4/bbl, above our estimate of US$1/bbl PAT during the quarter declined 44.1% QoQ and was at Rs 542.1 crore. It was below our estimate of Rs 577.4 crore mainly on account of lower reported GRMs and higher tax expenses. Higher-than-expected other income of Rs 77.1 crore (our estimate: Rs 37 crore) provided a cushion to profitability.

Outlook

We have a BUY recommendation on the stock at current levels. We value the stock at 6x FY20E EV/EBITDA multiple and OMPL at Rs 7.6/share to arrive at a target price of Rs 130.

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