BQ Prime’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 BQ Prime’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.
HDFC Securities Retail Research
Considering the strategic importance of Mangalore Refinery and Petrochemicals Ltd.’s refinery in the southern India, expansion plan and strong promoter back ground, we expect the financial performance and valuation to improve in the medium term.
MRPL’s ongoing enhancement projects and expectation of sustained bounce back in gross refining margin could lead to strong earning visibility and return on equity improvement going forward.
MRPL has strong asset profile, led by the superior processing capabilities of its refinery as reflected by high Nelson Complexity index, its experienced management team and favorable location, being close to the port.
Considering its smaller size and volatile refining margin profile (almost nil marketing margins), the stock is trading at lower valuation than other refiners.
Expectations of strong revenue growth and margins expansion (including marketing margins over two-three years), combined with healthy RoE make a case for higher multiple.
Click on the attachment to read the full report:
Also Read: Linc - Consistency In Performance Would Make It A Strong Candidate For Re-Rating: HDFC Securities
DISCLAIMER
This report is authored by an external party. BQ Prime 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 BQ Prime.
Users have no license to copy, modify, or distribute the content without permission of the Original Owner.
RECOMMENDED FOR YOU

'Buy' V-Guard Industries Shares Maintains Nirmal Bang On Strong Core, New Products


Mark Mobius Bullish On Vodafone Idea, Expects Better Performance


Chennai Petroleum, MRPL, MCX, Avenue Supermarts, Titan, Polycab Are Buzzing On Dealer Desk


Need For Electronic Warfare Resilience Will Increase Going Forward: ideaForge CEO
