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.
Motilal Oswal Report
Mangalore Refinery and Petrochemicals Ltd. has returned 43% in 2021 on hopes of an improvement in refining margin.
However, our research suggests that it continues to suffer from operational challenges, which prevents a consistent performance.
In FY21, it delivered as premium of 0.2/barrel of oil over Singapore complex gross refining margin of $0.5/bbl.
However, its GRM also includes benefits from the 0.44 million metric tonne per annum polypropylene plant, which is capable of contributing $2-3/bbl as seen from its past financials.
ONGC Mangalore Petrochemicals Ltd. continues to battle high debt of ~Rs 70 billion.
On a consolidated basis, the company's net debt of Rs 228 billion is ~2.5 times its market capitalisation.
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