Live news , top stories, corporate news, company news, sector news, economy news, results analysis news, ceo interviews, fund manager interview, advisor interview, market news, bazaar talk, hot stocks news, ipo news, commodities news, mutual fund news, insurance news, news wire
26 January, 2022 15:00 IST
HPCL: Q2FY22 Review-Steady Performance; Hold
Source: IRIS | 03 Nov, 2021, 08.19PM
Rating: NAN / 5 stars.
Comments  |  Post Comment

 In Q2FY22, Hindustan Petroleum Corporation (HPCL)'s sales grew by 42.2% YoY and 12.9% QoQ to Rs876bn. Standalone EBITDA decreased by 16.4% YoY and 5.6% QoQ to Rs30 billion. Net profit declined by 22.4% YoY and  increased by 7.2% QoQ to Rs 19.2 billion, mainly supported by increase in other income which grew by 21% YoY to Rs 4.5 billion. The Company reported GRMs of USD 2.4/bbl during the quarter while Refinery utilization remained at 64% in Q2FY22.

"We are revising our PAT estimates downwards by 6.7% and 14% for FY22 and FY23 respectively. The stock is currently quoting at PER of 7.5xFY24E and 7.3xFY24 EV/EBITDA. We resume the coverage on the Company with Hold rating and SOTP based target price of Rs 326,” stated IDBI Capital Equity Research.

Key highlights and investment rationale

Healthy quarter: In Q2FY22, HPCL reported sales growth of 42.2% while PAT declined by 22.4% YoY. The Company reported GRMs of USD 2.4/bbl during the quarter. The refining throughput was up 1% QoQ to 2.5mmt at 64% utilization. During the quarter, petrol and diesel volumes grew by 13% and 9% respectively.

Outlook: The Company plans to incur capex of Rs 145 billion for FY22 and FY23. It is not planning any major expansion as of now.  HPCL currently has 327 EV charging stations which it plans to raise to 5000 by FY25. Also, currently it has 809 CNG stations   which it plans to increase to 5300 by FY25.

Valuations and recommendations: The stock is currently quoting at PER of 7.5xFY24E and 7.3xFY24 EV/EBITDA. We resume the coverage on the Company with Hold rating and SOTP based target price of Rs 326.

Disclaimer: IRIS has taken due care and caution in compilation of data for its web site. Information has been obtained by IRIS from sources which it considers reliable. However, IRIS does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. IRIS especially states that it has no financial liability whatsoever to any user on account of the use of information provided on its website.

 



 Post Comment
Name Email
Comment
Security Code type    into this box
Related Articles
Cera Sanitaryware Q3FY22 Review-A positive surprise on margins front; Buy - 26-Jan-2022 11:01
HDFC Life launches Sustainable Equity Fund - 24-Jan-2022 18:45
RIL Q3FY22 Review-Going from Strength to Strength; Hold - 24-Jan-2022 16:16
Ashoka Buildcon gets LoA for NHAI project - 24-Jan-2022 15:53
ICICI Bank: Evolution from a benchmark follower to a setter! - 24-Jan-2022 15:38
Rane (Madras) reports consolidated net loss of Rs 4 cr in Q3 - 24-Jan-2022 14:52
JSW Steel Q3FY22 review- Poised for strong volume growth - 24-Jan-2022 14:36
IDBI Capital recommends Buy on PVR post Q3 results - 24-Jan-2022 11:18
Home  |   Shares  |   F&O  |   Mutual Funds  |   Loans  |   Insurance  |   News Centre
Wealth Tracker  |   Newsletters  |   Tax Corner  |   NRI Centre  |   Advertise
© All rights reserved. IRIS Business Services Limited
A Disclaimer