External broker reports(aggregated public sources), HDFC Securities

HDFC Securities

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External broker reports(aggregated public sources)

HDFC securities is the best online trading platform for stocks, IPOs, mutual fund in India. 

Content available is external broker reports authored by a third party outside the Smartkarma network and has been aggregated by an online aggregator through publicly available sources and is displayed by Smartkarma in this format for user's convenience and general informational purposes only. Content does not constitute investment or financial advice and Smartkarma makes no representation or warranty regarding its accuracy or contents. Original third party author retains all copyright and other proprietary rights in the content. Access or use of third party links not controlled by Smartkarma are at the user's own risk.

Equity Bottom-Up

<ul><li>Indian Oil Corporation (IOCL) stock rallied ~64% and outperformed the Sensex by ~52% over the last 3M, driven by improving auto fuel marketing margins as Brent crude price declined by ~14% to USD ~82/bbl over the same period and strong refining margins as diesel and jet fuel crack spreads averaged ~USD 23/bbl</li><li>We downgrade IOCL to a REDUCE from an ADD, with a target price of INR 140/sh, owing to the risk of (1) margin pressure due to increasing petchem supplies/capacity, (2) lower auto-fuel marketing margins, and (3) moderation in refining margins.</li><li>At CMP, IOCL’s valuation remains demanding, trading at 6.1x EV/EBITDA – a 35% premium to its 5-year average EV/EBITDA multiple of 4.5x.  </li></ul><p><em>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.</em></p>

Indian Oil Corporation (IOCL) stock rallied ~64% and outperformed the Sensex by ~52% over the last 3M, driven by improving auto fuel marketing margins as Brent crude price declined by ~14% to USD ~82/bbl over the same period and strong refining margins as diesel and jet fuel crack spreads averaged ~USD 23/bblWe downgrade IOCL to a REDUCE from an ADD, with a target price of INR 140/sh, owing to the risk of (1) margin pressure due to increasing petchem supplies/capacity, (2) lower auto-fuel marketing margins, and (3) moderation in refining margins.At CMP, IOCL’s valuation remains demanding, trading at 6.1x EV/EBITDA – a 35% premium to its 5-year average EV/EBITDA multiple of 4.5x.  Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Indian Oil Corporation: Margins to Moderate, Downgrade to Reduce