Hold HPCL, target price Rs 215: ICICI Direct
ICICI Direct has given a hold rating to Hindustan Petroleum Corporation Ltd.(HPCL) with a 12-month target price of Rs 215. The share price moved up by 0.31 per cent from its previous close of Rs 222.90. The stock’s last traded price is Rs 223.60.
Hindustan Petroleum Corporation’s Q4FY20 results were above the brokerage estimates on the operational front. Revenues fell 4.1 per cent quarter on quarter to Rs 71554.6 crore due to lower product sales. Both marketing & refining segments reported inventory losses.
On the refining front, reported GRMs were at $1.2/bbl, impacted by inventory loss of $10.6/bbl while core GRMs were at $9.4/bbl. EBITDA loss was at Rs 706.6 crore vs. brokerage estimate of Rs 151.8 crore, impacted by forex loss of Rs 975 crore. HPCL reported an exceptional loss of Rs 1002.9 crore owing to a writedown of inventories due to fall in oil prices. PAT was at Rs 26.8 crore, down 96.4 per cent quarter on quarter, against brokerage estimate of Rs 628.4 crore) due to tax write-back as HPCL shifted to a lower tax rate.
