Chennai Petroleum
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Showing posts with label Chennai Petroleum. Show all posts
Showing posts with label Chennai Petroleum. Show all posts
Wednesday, February 08, 2012
Sunday, February 06, 2011
Chennai Petroleum
An optimistic outlook for the refining sector, expected improvement in the company's utilisation levels, and a sharp decline in the stock's price make Chennai Petroleum (CPCL)an attractive buy for investors with a long-term perspective. The stock has been a significant under-performer, losing around 28 per cent since the beginning of the fiscal, compared with the 3 per cent gain in the Sensex.
Wednesday, October 22, 2008
Friday, August 29, 2008
Monday, July 28, 2008
Sunday, January 27, 2008
Wednesday, July 18, 2007
Chennai Petroleum Corporation Q1FY08 Result Update (Accumulate)
Higher GRM boosts profitability
Chennai Petroleum Corporation Ltd. (CPCL) reported a sizeable growth in operating profit of 23% YoY and 47% QoQ, on the back of buoyancy in international refining margins and operating efficiencies, in spite of supply constrains. GRM of US$8.76/bbl for Q1FY08 is more than 30% higher than, US$6.64/bbl in Q1FY07 and US$6.42/bbl in Q4FY07. The stock is trading at EV/EBITDA of 4.3x and PER of 6x FY08E, a significant discount to its domestic and international peers. We believe global refining margin will remain buoyant due to tight demand-supply situation for petroleum products, which will eventually benefit the company. We recommend ‘Accumulate’ rating on the stock.
Chennai Petroleum Corporation Q1FY08 Result Update (Accumulate)
Tuesday, May 15, 2007
Edelweiss - Chennai Petroleum - refining margins rebound; result update Q4FY07; upgrade to Buy
Chennai Petroleum (MRL IN, INR 231, upgrade to Buy)
Chennai Petroleum's (CPCL) Q4FY07 numbers were above expectations. Net profit increased by 434% Y-o-Y and 678% Q-o-Q due to a rebound in refining margins.
CPCL reported GRMs of USD 6.42/bbl in Q4FY07 compared to USD 2.65/bbl in Q4FY06 and USD 2.95/bbl in Q3FY07. The increase in reported GRMs were inline with increase in regional refining margins (Edelweiss India refining margins were up at USD 5.6/bbl from USD 4.08/bbl in 4QFY06 and USD 2.84/bbl in 3QFY07). For FY07, CPCL reported GRMs of USD 5.0/bbl, up from USD 4.37/bbl reported in FY06.
We are revising our FY08 and FY09 EPS estimates upwards by 16% and 34% to INR 34.7/share and INR 35.2/share, respectively. We have increased our forecast for regional GRMs as we believe that time and cost overruns in new refinery capacity addition worldwide will help sustain GRMs in FY08 and FY09. We estimate CPCL to report GRMs of USD 4.97/bbl in FY08, up from our previous estimate of USD 4.23/bbl.
We are upgrading the stock to 'BUY' from 'ACCUMULATE' as at CMP of INR 231, the stock trades at 6.7x and 6.6x our FY08 and FY09 EPS estimates with a FY08 dividend yield of 5.3%. On an EV/EBITDA basis, CPCL trades at 4.5x and 4.0x our FY08 and FY09 estimates, which is at a steep discount to the international refining and marketing companies' median at 6.9x and 6.2x FY08 and FY09 consensus estimates.
Edelweiss - Chennai Petroleum - refining margins rebound; result update Q4FY07; upgrade to Buy
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