HPCL - Extent Of Fuel Price Cut Does Not Impact Business Case: ICICI Securities

NDTV Profit’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 NDTV Profit’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..ICICI Securities Report.At current price, HIndustan Petroleum Corporation Ltd.'s valuations of 4.2 times FY26E price-to-earnings ratio and 5.3 times FY26E enterprise value/Ebitda provide enough leeway for further outperformance over the next 12-18 months, in our view. We believe that valuations are still at attractive levels and do not fully reflect the structural changes in scale and earnings profile of the company over the next three years. Our valuation for HPCL, at ~5.3 times FY26E EV/Ebitda for the refining and marketing business, with listed investments valued at current market price delivers a revised target price of Rs 625 (earlier Rs 555), a material ~25% upside from CMP. Reiterate Buy. .Key upside risks:Faster-than-expected revival in benchmark gross refining margins. Recovery in petrochemical price realisations. Stronger retail fuel margins. Valuation of the associated businesses (city gas distributions, renewables etc.) coming into Street’s estimates. .Key downside risks: Execution delays and longer stabilisation time of the expanded capacity.Prolonged downturn in both refining and petchem cycles. Sustained period of uneconomic fuel price cuts beyond what we expect as of now..Click on the attachment to read the full report:.OMCs - Post Price Cut No Cushion To Margin If Oil Price Rise: Dolat Capital.DISCLAIMERThis report is authored by an external party. NDTV Profit 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 NDTV Profit..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

HPCL - Extent Of Fuel Price Cut Does Not Impact Business Case: ICICI Securities

Valuations leave enough leeway for material upside; maintain Buy

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