After a weak Q2, ICICI Securities maintains reduce rating on HPCL

After the state-run oil marketing company HPCL NSE -3.53 % reported weak quarterly numbers for the September quarter, domestic brokerage ICICI Securities NSE 2.44 % maintained its reduce rating on the counter with a target price of Rs 186, a downside of over 8% from the current market price of Rs 203.

In the quarter ended September, the company reported a weak operating performance with a recurring EBITDA loss of Rs 712 crore and a net loss of Rs 779 crore. The brokerage attributes the weakness to the $8.4/bbl QoQ dip in gross refining margins or GRMs and continuing losses in marketing.