HPCL Rajasthan Refinery - A White Elephant Or Prized Asset? Motilal Oswal

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. .Motilal Oswal Report.HPCL's Rajasthan Refinery Ltd. is set to start operations in FY26 and will add ~30% to HPCL’s refining capacity. At peak capacity utilization (likely in FY28), HRRL will contribute ~37% to HPCL’s FY26E Ebitda. HPCL will account for HRRL on a joint venture basis (74% stake).HRRL’s start coincides with what we view as the golden age of refining, as global net refining capacity additions in 2024-30 are estimated to be only 3.3 million barrels per day, implying an average annual net capacity addition of 470000 b/d, down 40% compared to the 780000 b/d average observed during 2010-19.HPCL’s marketing-to-refining ratio is set to improve from 2.1 times now to ~1.6 times after the completion of its bottom upgradation unit (October 2024) and HRRL startup, and further to 1times if the merger with MRPL materializes. This will lower earnings volatility/under-recovery related uncertainty and drive structural improvement in the business.Lastly, with Castrol trading at 15.5 times FY26E enterprise value/Ebitda, the demerger of HPCL’s lubricant business and listing can unlock up to Rs 33/share in value.We reiterate 'Buy' on HPCL with SoTP-based target price of Rs 460/share..Click on the attachment to read the full report:.NCL India Q1 Results Review - Net Profit Largely Inline; Revenue/Ebitda Miss: Axis Securities.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 Rajasthan Refinery - A White Elephant Or Prized Asset? Motilal Oswal

HPCL’s marketing-to-refining ratio is set to improve after the completion of its bottom upgradation unit and HRRL startup, and further to 1x if the merger with MRPL materializes, says brokerage

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HPCL Rajasthan Refinery - A White Elephant Or Prized Asset? Motilal Oswal

HPCL’s marketing-to-refining ratio is set to improve after the completion of its bottom upgradation unit and HRRL startup, and further to 1x if the merger with MRPL materializes, says brokerage

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