MRPL Q1 Results Review - Weak Gross Refining Margins Drag Earning: Prabhudas Lilladher

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..Prabhudas Lilladher Report.Mangalore Refinery and Petrochemicals Ltd. reported lower-than-estimated Ebitda at Rs 6 billion (down 74.1% QoQ, our estimate: Rs 8.4 billion) in Q1 FY25. Profit after tax came in at Rs 0.7 billion (down 94.2% QoQ, our estimate: Rs 2 billion). Reported gross refining margin stood at $4.7/barrel of oil with an inventory gain of $0.9/bbl. Average Singapore GRM in Q2 FY25-to-date is at ~$4/bbl, and we believe GRMs are likely to remain weak in the long term given adequate refining capacity additions in China, India and the Middle East amid weak demand prospects. Post factoring in ONGC Mangalore Petrochemicals Ltd. and PP-P contribution, we build in a GRM of $6.8/7.5/bbl for FY25/26E. The stock is currently trading at 19.7 times/16.9 times FY25/26 EPS and 10.1 times/8.3 times FY25/26E EV/Ebitda. However, given the weak refining outlook, we maintain our ‘Sell’ rating with a target price of Rs 130 (previous target price Rs 135) based on six times FY26 EV/Ebitda..Click on the attachment to read the full report:.BPCL Q1 Results Review - Inline Despite Miss On Gross Refining Margin: Nirmal Bang.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.

MRPL Q1 Results Review - Weak Gross Refining Margins Drag Earning: Prabhudas Lilladher

Given the weak refining outlook, the brokerage maintains its ‘Sell’ rating with a target price of Rs 130.

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MRPL Q1 Results Review - Weak Gross Refining Margins Drag Earning: Prabhudas Lilladher

Given the weak refining outlook, the brokerage maintains its ‘Sell’ rating with a target price of Rs 130.

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