HPCL Q4 Review - Best Placed For Sector Upturn: Prabhudas Lilladher

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Prabhudas Lilladher Report

We tweak our FY22/23E estimates for Hindustan Petroleum Corporation Ltd., as we incorporate actual FY21 numbers and share buyback.

In FY21 core standalone Ebitda adjusted for inventory and forex gains was at Rs 71.2 billion (down 30% YoY), due to weak marketing and refining profits.

We believe that increased crude oil supplies from Organization of the Petroleum Exporting Countries and Iran, post lifting of sanctions will likely keep crude oil prices range bound and support marketing margins in medium term.

Also, gross refining margins will recover with pickup in economic activity.

The company remains our preferred pick among the oil marketing companies.

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