HPCL - Battling A Three Headed-Monster: Motilal Oswal
The Hindustan Petroleum Corp. logo is displayed at a gas station in New Delhi, India. (Photographer: Prashanth Vishwanathan/Bloomberg)

HPCL - Battling A Three Headed-Monster: Motilal Oswal

BQ Blue’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BloombergQuint’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.

Motilal Oswal Report

Hindustan Petroleum Corp., the darling of deregulation due to its highest leverage to marketing, is soon going to lose its crown with the addition of 5 million metric tonnes per annum/2mmtpa refining capacity at Visakhapatnam/Mumbai by the end of FY22/CY21.

Marketing will account for only 52% of total consolidated Ebitda in FY23E versus 88% in FY21.

Due to Visakhapatnam expansion, Rajasthan greenfield project, and marketing, consolidated debt is expected to rise to Rs 641 billion in FY23E from Rs 427 billion in FY21, 1.5 times its current market capitalisation.

The residual upgradation project (slurry hydrocracker) at Visakhapatnam is of a relatively new technology, with very few precedents globally.

Click on the attachment to read the full report:

Motilal Oswal HPCL Company Update.pdf

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