February 11, 2017 / 14:42 IST
EBITDA increased 42.2% QoQ to Rs 1147.6 crore, which was below our estimate of Rs 1307.5 crore. GRMs during the quarter came in at US$7.4/bbl vs. US$4.7/bbl in Q2FY17. However, they came in below our estimates of US$9.2/bbl. Inventory gains came in at US$2.3/bbl in line with our estimates of US$2.5/bbl.
OutlookGiven the sharp run up in the stock price in the last few months and the government’s directive to cut down promoter’s stake to 75%, we have a HOLD recommendation on the stock at current levels. However, the stock can be accumulated at lower price levels. We value the stock at 6x FY19E EV/EBITDA multiple and OMPL at Rs 7.6/share to arrive at a target price of Rs 122.
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