Downgrade to sell amid volatile performance

Company
23 Jan 2024
5 Min read 
  • MRPL's 3QFY24 results missed estimates due to lower-than-expected reported GRM.
  •  Refining throughput was in line with estimates at 4.4mmt.
  •  Opex moderated in 3Q after being impacted in 2Q due to maintenance shutdown.
  •  MRPL's highest ever monthly gross crude input was recorded in Dec23.
  •  SG GRM rebounded to USD7.2/bbl in 4QFY24td after declining in 3QFY24.
  •  EBITDA/PAT estimates for FY24 were cut by 7%/11% and the stock was downgraded to sell.
  •  The stock is trading at a higher P/BV and has a low dividend yield.
  •  MRPL aims to capture the domestic retail market and expand its retail outlets.
  •  The stock is valued at 5.5x Dec25E EBITDA to arrive at a TP of INR135.
Login / Open Demat Account to read the report

Never Miss Out on Hot Market Updates

Get exclusive market news delivered to your inbox - on priority