After a weak Q2, ICICI Securities maintains reduce rating on HPCL
The brokerage continues to build-in reasonably strong GRMs over FY23E-FY24E for HPCL, coupled with the rising throughput, will be a key driver of earnings. However, the extent of losses in marketing remains too material to be offset by refining. Furthermore, while the brokerage does build-in a substantial narrowing of losses over the rest of FY23E, any delays/hurdles would pose a tangible downside to our already trimmed FY23E earnings.