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.
Prabhudas Lilladher Report
Indian Oil Corporation Ltd.'s Q2 Ebitda stood at Rs 213.1 billion (down 4% QoQ, our estimate: Rs 171.8 billion) and profit after tax at Rs 129.7 billion (down 6% QoQ, our estimate: Rs 96.4 billion).
The beat on estimates was driven by higher than expected refining margins. Refining capacity utilisation stood at 100.9%.
Going ahead, we anticipate Indian Oil's gross refining margins at $6/barrel of oil for FY25/26E and gross marketing margin at Rs 4.2/litre for FY25/26E.
The stock is currently trading at a price-to-book value of 0.8 times and enterprise value/Ebitda of four times, factoring in the softening Singapore GRMs and inability to pass on rise in fuel cost.
We maintain ‘Hold' rating with a target price of Rs 94 (previous target price Rs 97) based on 0.7 times FY26E P/BV.
Click on the attachment to read the full report:
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.
Essential Business Intelligence, Sharp Market Insights, Practical Personal Finance Advice, Daily Fuel, Gold and Silver Prices and Latest Stories — On NDTV Profit.