CLSA maintained sell rating and cut target to Rs 210 from Rs 240 per share.
Hindustan Petroleum Corporation (HPCL) share price rose 1 percent on February 6 morning after the company has reported 200 percent jump in its year-on-year net profit at Rs 747 crore against net profit of Rs 248 crore in the same period a last year.
However, the net profit was down 29 percent at Rs 747.2 crore against Rs 1,052.3 crore, while revenue was up 16.2 percent at Rs 70,749.4 crore versus Rs 60,868.4 crore, QoQ.
CLSA | Rating: Sell | Target: Cut to Rs 210 from Rs 240 per share
There was a big PAT miss as refining & marketing margins come in lower.
Building in lower GRMs, research house cut FY20-22 EPS estimates by 9-12 percent. However, spectre of a large Q4 inventory loss is the near-term worries.
Credit Suisse | Rating: Underperform | Target: Rs 260 per share
There was a loss in refining segment, while strong marketing volumes growth led by LPG.
Cautious due to heavy capex cycle over the next 4 years, while lower LPG growth could impact marketing volume growth.
The recovery in refining margins should be gradual given high supply adds, it added.Exclusive offer: Use code "BUDGET2020" and get Moneycontrol Pro's Subscription for as little as Rs 333/- for the first year.
