Moneycontrol PRO
Check Credit Score
Check Credit Score
HomeNewsBusinessStocks

Buy IOCL; target of Rs 145: Motilal Oswal

Motilal Oswal is bullish on IOCL recommended buy rating on the stock with a target price of Rs 145 in its research report dated August 01, 2020.

August 07, 2020 / 01:49 PM IST
 
 
live
  • bselive
  • nselive
Volume
Todays L/H
More

Motilal Oswal 's research report on IOCL

IOCL reported better-than-expected margins on all fronts – refining (core at USD4.4/bbl), marketing (INR8.6/liter) and petchem (EBITDA/mt at USD200), with in line refining throughput. Marketing sales were 6% lower than est. owing to impact of the COVID-19 led lockdown. Despite the sharp crude price increase (from its multi-decade trough) during 1QFY21, IOCL reported total inventory loss of INR32b owing to its longer inventory cycle. However, margins led to a huge beat on our EBIDTA estimates. Also, debt has decreased QoQ from INR1,165b to INR986b.


Outlook

The discount gap to its peers should shrink and we value it at 1.2x FY22E PBV (at par with FY15-18 post reform period), to arrive at target price of INR145. Reiterate Buy.

For all recommendations report, click here

Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.

Broker Research
first published: Aug 7, 2020 01:49 pm

Discover the latest business news, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!

Advisory Alert: It has come to our attention that certain individuals are representing themselves as affiliates of Moneycontrol and soliciting funds on the false promise of assured returns on their investments. We wish to reiterate that Moneycontrol does not solicit funds from investors and neither does it promise any assured returns. In case you are approached by anyone making such claims, please write to us at grievanceofficer@nw18.com or call on 02268882347