HPCL - Big Upside If Bet On Refining Pays Off: ICICI Securities

The Hindustan Petroleum Corp. logo is displayed at a gas station in New Delhi. (Photographer: Prashanth Vishwanathan/Bloomberg)

HPCL - Big Upside If Bet On Refining Pays Off: ICICI Securities

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.

ICICI Securities Report

Hindustan Petroleum Corporation Ltd. is set to boost its refining (1.7-2.2 times), petrochemical (8.6-11.5 times) capacity and raise complexity of its refineries.

Full benefit of these projects is likely to accrue in FY25E.

However, in the interim, the company may be impacted by weak gross refining margins, sub-optimal gains from stabilising projects, below FY21 peak auto fuel marketing margin, and rise in debt.

The key to stock performance is how soon GRM recovers, which depends on pace of global demand recovery and refinery closures.

A strong GRM phase coinciding with stabilisation of its projects appears likely.

Click on the attachment to read the full report:

ICICI Securities HPCL Resume Coverage.pdf


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