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

DISCLAIMER

This report is authored by an external party. BloombergQuint does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of BloombergQuint.

Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

BQ Install

Bloomberg Quint

Add BloombergQuint App to Home screen.