Buy HPCL for a value goal of Rs 306
Anand Rathi is optimistic about HPCL’s stock and its stock has a target price of Rs 606 and a closing price of Rs 255 on Monday.
HPCL recorded a profit after tax of Rs 20.04 billion, which is 11.0% less than Rs 22.53 billion in the same quarter last year, due to the refinery’s planned shutdown, some industrial products they supply directly from the refinery and exchange rate losses.
According to Anand Rathi, another 122 new retail outlets have been opened through the HPCL Commission, bringing the total retail network to 1, 7. CNG facility has been added in 50 more retail outlets. “With this, 724 retail outlets now have access to CNG. About 25% of the total network is solarized, it now operates on solar power, which is more than 5,000 retail outlets. To give customers multiple choices for their energy. Need, HPCL The largest integrated power company has entered into a strategic partnership with Tata Power to provide EV charging at petrol pumps in various cities and major highways.
“We have a positive outlook behind HPCL’s Capex plan due to its revenue growth visibility and improved marketing margin environment. The company is also doubling its existing capacity in Visakhapatnam and Mumbai refineries, which will increase revenue for its refinery business. Maintain our BUY rating on the stock with a revised target price of Rs 306, ”added Anand Rathi.
Buy Deepak Nitrate, says Motilal Oswal
Motilal Oswal bought stock of Deepak Nitrite, an intermediate chemical company, which has a diversified business of Basic Chemicals, Fine and Specialty Chemicals and Performance Products. It makes phenol, acetone and isopropyl alcohol (IPA)
Through its affiliate Deepak Phenolics (DPL).
According to Motilal Oswal, Deepak Nitrate has the most profitable profile in the entire specialty chemical space. Management says it will facilitate import substitution with further integration into existing processes. Work on the IPA expansion and captive power plant will begin towards the end of 1HFY22.
“Captive power plants will increase competitiveness in this segment. Demand for OBA and DASDA (e.g. Performance Chemicals) is expected to recover in FY22, while demand for Agrochemical and Personal Care products will remain strong.
Despite the Rs 18 billion Capex plan over the next three years, it is expected to become a net cash positive by FY23E, with FCF 22-24E producing Rs 17.4 billion in FCF. We maintain our buy rating with one of the best RoE profiles in our coverage universe, ”said the brokerage.
Investing in equities creates the risk of financial loss. So investors must be careful. Greenium Information Technologies, the author and brokerage house is not responsible for any loss resulting from the decision based on the article. The above article is for informational purposes only and is taken from the brokerage report of Anand Rathi and Motilal Oswal. Be careful when investing because the Sensex has now crossed 55,000 points. Investors can invest small amounts and avoid soggling.