Nomura has a neural call on HPCL, target price Rs 185

Nomura has given a neutral rating to Hindustan Petroleum Corporation with a target price of Rs 185. The share price moved up by 2.80 per cent from its previous close of Rs 214.10. The last traded stock price is Rs 220.10.

According to the brokerage, though reported numbers were better than its expectation, HPCL’s result looked much weaker than its peer BPCL’s . Adjusted for Rs 10 billion inventory losses shown as exceptional items, EBITDA loss came in at Rs 20 billion against Nomura’s estimate of a loss of Rs 25.5 billion). PBT loss post-exceptionals at Ra 24.3 billion was lower than the brokerage estimate of Rs 28.1 billion loss, largely due to lower overall inventory losses. Adjusted for tax reversal and prior period taxes, PAT loss came in at Rs 13.8 billion versus the brokerage estimate of Rs 18.4 billion loss.