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HPCL, BPCL, Indian Oil shares set for their worst week in at least two years

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

 Listen to the Article (6 Minutes)

Summary

BPCL’s shares have also declined over 8% this week and are also set for their worst weekly performance since June 2022.

Shares of Hindustan Petroleum (HPCL), Bharat Petroleum (BPCL) and Indian Oil (IOC) are trading with losses of over 6% each after the price cut of ₹2 per litre on petrol and diesel took effect earlier on Friday.

HPCL shares are down over 8% for the week so far and are poised to report their worst weekly performance since April 2022.

BPCL’s shares have also declined over 8% this week and are also set for their worst weekly performance since June 2022.

Indian Oil’s shares have declined in five out of the last six trading sessions. For the week, it is down over 10%, making it the worst week the stock has had since June 2022.

Indian Oil Chairman SM Vaidya, in response to a question from CNBC-TV18 said that the fuel price cut will not have much have an impact on the company’s bottom line. “To a very large extent, we do not see price cuts having a bottom line impact,” he said.

“OMC’s have been on a declining trend for almost a month now with IOC, BPCL, HPCL down by almost 20% from their respective life high level. The most recent incidence of a weekly closing below the 5-WEMA support levels was on October 27, 2023,” said Sacchitanand Uttekar of Tradebulls.

“Since their trend strength indicators are supporting additional weakness & fresh short build up has been piling up. It is best to hold off on building any anticipatory long positions on a decline until they form a base back around their 20 WEMA support base, which is further lower by 10-12% from the current juncture,” he added.

Morgan Stanley believes that this much-anticipated fuel price cut will finally remove a key overhang on these stocks.

HPCL, BPCL and Indian Oil were recently downgraded by CLSA, who has reiterated its “sell” recommendation on all the three companies.
While the cut would hurt near-term sentiment, according to Citi, it views any meaningful pullback as a buying opportunity in these stocks for the medium-term.
“From an earnings standpoint the impact is not as material as one would think, which is, I think, a positive in the sense that the price cut is way more reasonable. One should expect a little bit of negative reaction without a doubt, specifically on companies with dominance of marketing sales like, HPCL. But I would look at this opportunity to sort of enter the stock and build positions because we believe that the business case doesn’t get hampered as a result of these price cuts,” said Probal Sen of ICICI Securities.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

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Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

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KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

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index Price Change
nifty 50 ₹16,986.00 -72.15
sensex ₹1,882.60 +28.30
nifty IT ₹2,206.80 +30.85
nifty bank ₹1,318.95 -14.95
index Price Change
nifty 50 ₹16,986.00 -7.15
sensex ₹1,882.60 +8.30
nifty IT ₹2,206.80 +3.85
nifty bank ₹1,318.95 -1.95
index Price Change
nifty 50 ₹16,986.00 -72.15
sensex ₹1,882.60 +28.30
nifty IT ₹2,206.80 +30.85
nifty bank ₹1,318.95 -14.95
index Price Change
nifty 50 ₹16,986.00 -7.15
sensex ₹1,882.60 +8.30
nifty IT ₹2,206.80 +3.85
nifty bank ₹1,318.95 -1.95
index Price Change
nifty 50 ₹16,986.00 -7.15
sensex ₹1,882.60 +8.30
nifty IT ₹2,206.80 +3.85
nifty bank ₹1,318.95 -1.95

Currency

Company Price Chng %Chng
Dollar-Rupee 73.3500 0.0000 0.00
Euro-Rupee 89.0980 0.0100 0.01
Pound-Rupee 103.6360 -0.0750 -0.07
Rupee-100 Yen 0.6734 -0.0003 -0.05
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The rally in HPCL, BPCL, IOC leaves the street divided at extreme ends

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Summary

Morgan Stanley mentioned that a well-supplied oil market, hardware upgrades and refining golden age will drive the next leg of earnings upgrades. It highlighted HPCL and BPCL as its preferred picks.

India’s state-run oil refiners, Hindustan Petroleum Corporation (HPCL), Bharat Petroleum )(BPCL) and Indian Oil Corporation (IOC) has left the analyst community divided over its prospects going forward. There have been a slew of upgrades, downgrades and price target revisions on all these three names after these three names have rallied between 30% to 40% so far in 2024.

On February 16, Jefferies upgraded BPCL to “buy” from its earlier rating of “Underperform.” It also increased its price target on the refiner sharply to ₹890 from ₹415 earlier, saying that BPCL offers the largest margin of safety among the three companies.

While Jefferies maintained its “hold” and “underperform” rating on Indian Oil and HPCL respectively, it raised its price target on both these stocks to ₹215 from ₹135 and to ₹550 from ₹330 respectively.

Morgan Stanley mentioned that a well-supplied oil market, hardware upgrades and refining golden age will drive the next leg of earnings upgrades. It highlighted HPCL and BPCL as its preferred picks.

The consensus Earnings Per Share (EPS) estimates for financial year 2024 for these OMCs remain “too low” according to JPMorgan, who is overweight on BPCL and Indian Oil, while staying neutral on HPCL.

On the flip side, CLSA maintained its bearish stance on these OMCs, expressing worries over their marketing margins.

CLSA had downgraded the three state-run oil refiners on January 4 this year after the stocks had seen a 30% to 50% rally between November and December last year. The downgrade had come barely two months after the brokerage had upgraded these stocks, citing valuation comfort as one of the reasons.

On Wednesday, Nuvama downgraded all three stocks – HPCL, BPCL and IOC to reduce, saying that these stocks have rallied despite being structurally disadvantaged. It expects a fall in the earnings of these companies as Gross Refining Margins (GRMs) normalise.

“OMCs now quote way above their past valuations, even at a premium to the US peers with inherent edge from low-cost WTI,” Nuvama wrote in its note.

Shares of HPCL are trading 0.8% lower on Wednesday, BPCL shares are down 0.6%, while those of Indian Oil are down by a similar quantum.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

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Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

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KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

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index Price Change
nifty 50 ₹16,986.00 -72.15
sensex ₹1,882.60 +28.30
nifty IT ₹2,206.80 +30.85
nifty bank ₹1,318.95 -14.95
index Price Change
nifty 50 ₹16,986.00 -7.15
sensex ₹1,882.60 +8.30
nifty IT ₹2,206.80 +3.85
nifty bank ₹1,318.95 -1.95
index Price Change
nifty 50 ₹16,986.00 -72.15
sensex ₹1,882.60 +28.30
nifty IT ₹2,206.80 +30.85
nifty bank ₹1,318.95 -14.95
index Price Change
nifty 50 ₹16,986.00 -7.15
sensex ₹1,882.60 +8.30
nifty IT ₹2,206.80 +3.85
nifty bank ₹1,318.95 -1.95
index Price Change
nifty 50 ₹16,986.00 -7.15
sensex ₹1,882.60 +8.30
nifty IT ₹2,206.80 +3.85
nifty bank ₹1,318.95 -1.95

Currency

Company Price Chng %Chng
Dollar-Rupee 73.3500 0.0000 0.00
Euro-Rupee 89.0980 0.0100 0.01
Pound-Rupee 103.6360 -0.0750 -0.07
Rupee-100 Yen 0.6734 -0.0003 -0.05
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HPCL, BPCL, IOC shares extend gains after best week in multiple years

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Summary

IOC has turned out to be the outperformer, with shares rising 17% in the first few days of February, extending gains from the 13% surge it saw in January.

Shares of Indian Oil Corporation are up 7% on Monday and have gained in seven out of the last eight trading sessions. On similar lines, shares of its peers, HPCL and BPCL are also trading with gains of over 4% each at the start of the week.

After gaining 16% in January, shares of HPCL are up another 8% this month, while those of BPCL are up 14% this month already, after gaining 11.5% this month. IOC has turned out to be the outperformer, with shares rising 17% in the first few days of February, extending gains from the 13% surge it saw in January.

HPCL’s shares had gained 13% last week, marking its best week since October 2018. BPCL shares rose 17.7% last week, which was the best week since July 2020. Indian Oil also had its best week since October 2018.

At current prices, shares of HPCL are trading at 8 times financial year 2025 Earnings per Share (EPS). Shares of BPCL are trading at 8.5 times, while those of Indian Oil are trading at 8.6 times. The stocks are trading at a 11% to 15% premium to their long-term average.

HPCL’s management had mentioned earlier that it plans to raise its refinery capacity by 7 MTPA for its Vizag refinery and is planning a capex worth ₹75,000 crore over the next five years. It has also formed a wholly-owned subsidiary for the green business as well. For the lubricants business, the company is either looking to list it separately or bring in a strategic partner.

CNBC-TV18 also reported last week that the recent surge in HPCL has turned ONGC’s investment in the company profitable after six years.

The management of BPCL is also planning a capex worth ₹1.5 lakh crore over the next five years. Additionally, the company has also signed an MoU with a subsidiary of Tata Motors to set up EV charging stations on the highway corridors.

Indian Oil Corporation has capex for 25 MTPA capacity at Panipat, 18 MTPA for Gujarat and 9 MTPA capacity for its refinery at Barauni.

Brokerage firm Morgan Stanley wrote in a note that India’s downstream oil refiners are in a multi-year re-rating and earnings upgrade cycle and remain “underappreciated” even after the sector’s recent outperformance.

The brokerage said that Reliance and HPCL, BPCL, Indian Oil are in the early days of this re-rating given the tight fuel supplies and rising availability of challenging crude.

HPCL has re-rated, according to Morgan Stanley and is closing in on BPCL. Indian Oil will follow suit, as per Morgan Stanley.

JPMorgan believes that in a status quo scenario, the financial year 2025 projections might still be upgraded for these three companies. In terms of preference, JPMorgan prefers BPCL over HPCL.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

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KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

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index Price Change
nifty 50 ₹16,986.00 -72.15
sensex ₹1,882.60 +28.30
nifty IT ₹2,206.80 +30.85
nifty bank ₹1,318.95 -14.95
index Price Change
nifty 50 ₹16,986.00 -7.15
sensex ₹1,882.60 +8.30
nifty IT ₹2,206.80 +3.85
nifty bank ₹1,318.95 -1.95
index Price Change
nifty 50 ₹16,986.00 -72.15
sensex ₹1,882.60 +28.30
nifty IT ₹2,206.80 +30.85
nifty bank ₹1,318.95 -14.95
index Price Change
nifty 50 ₹16,986.00 -7.15
sensex ₹1,882.60 +8.30
nifty IT ₹2,206.80 +3.85
nifty bank ₹1,318.95 -1.95
index Price Change
nifty 50 ₹16,986.00 -7.15
sensex ₹1,882.60 +8.30
nifty IT ₹2,206.80 +3.85
nifty bank ₹1,318.95 -1.95

Currency

Company Price Chng %Chng
Dollar-Rupee 73.3500 0.0000 0.00
Euro-Rupee 89.0980 0.0100 0.01
Pound-Rupee 103.6360 -0.0750 -0.07
Rupee-100 Yen 0.6734 -0.0003 -0.05
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IOC Q3 Results: Revenue ahead of estimates; Refining margin at $13.5 per barrel

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Summary

Gross Refining Margin or GRM, calculated by CNBC-TV18 stood at $13.5 per barrel, higher than the CNBC-TV18 poll of $10 per barrel.

Indian Oil Corporation Ltd., India’s largest oil refiner reported a net profit of ₹8,064 crore for the October-December period, surpassing the CNBC-TV18 poll expectations of ₹4,387 crore.

However, on a sequential basis, the net profit for the company declined by 38% from ₹12,967 crore.

The net profit was also boosted by a higher other income component of ₹1,452 crore, compared to ₹982 crore in the previous quarter. Tax expenses also reduced by over ₹1,500 crore to ₹2,704 crore from ₹4,202 crore in the previous quarter.

Revenue for the quarter increased by 10.6% from the previous quarter to ₹1.99 lakh crore, from ₹1.8 lakh crore in the September quarter. A CNBC-TV18 poll had pegged the figure at ₹1.86 lakh crore.

EBITDA or Earnings Before Interest, Tax, Depreciation and Amortisation for the quarter declined by a quarter or 27.3% from the September quarter figure of ₹21,313 crore to ₹15,488 crore. The EBITDA figure was also higher than the ₹9,741 crore estimate pegged in a CNBC-TV18 poll.

Indian Oil’s EBITDA margin also declined by 400 basis points sequentially to 7.8% from 11.8%, but higher than the estimate of 5.1%.

Gross Refining Margin or GRM, calculated by CNBC-TV18 stood at $13.5 per barrel, higher than the CNBC-TV18 poll of $10 per barrel. Refining throughput for the quarter stood at 18.5 million tonnes, higher than the estimate of 18 MT.

However, the company’s Petchem segment remained loss-making on an operational level, with the net loss widening to ₹196 crore from ₹163 crore in the previous quarter.

Shares of Indian Oil Corporation are trading 2.5% higher to trade at ₹142.40. The stock is trading close to the day’s high.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

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KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

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index Price Change
nifty 50 ₹16,986.00 -72.15
sensex ₹1,882.60 +28.30
nifty IT ₹2,206.80 +30.85
nifty bank ₹1,318.95 -14.95
index Price Change
nifty 50 ₹16,986.00 -7.15
sensex ₹1,882.60 +8.30
nifty IT ₹2,206.80 +3.85
nifty bank ₹1,318.95 -1.95
index Price Change
nifty 50 ₹16,986.00 -72.15
sensex ₹1,882.60 +28.30
nifty IT ₹2,206.80 +30.85
nifty bank ₹1,318.95 -14.95
index Price Change
nifty 50 ₹16,986.00 -7.15
sensex ₹1,882.60 +8.30
nifty IT ₹2,206.80 +3.85
nifty bank ₹1,318.95 -1.95
index Price Change
nifty 50 ₹16,986.00 -7.15
sensex ₹1,882.60 +8.30
nifty IT ₹2,206.80 +3.85
nifty bank ₹1,318.95 -1.95

Currency

Company Price Chng %Chng
Dollar-Rupee 73.3500 0.0000 0.00
Euro-Rupee 89.0980 0.0100 0.01
Pound-Rupee 103.6360 -0.0750 -0.07
Rupee-100 Yen 0.6734 -0.0003 -0.05
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HPCL, BPCL, Indian Oil downgraded by CLSA after stocks rally 30-50% in two months

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Summary

CLSA believes that HPCL, BPCL and Indian Oil are trading at a premium of over 30% to their global peer average EV/EBITDA multiple of 4.5 times, which may be tough to sustain.

India’s state-run oil refiners, Hindustan Petroleum Corporation Ltd. (HPCL), Bharat Petroleum Corporation Ltd. (BPCL) and Indian Oil Corporation (IOC) have been downgraded by brokerage firm CLSA after the stocks rallied between 30% to 50% during November and December last year.

All three stocks have been downgraded to “Sell” from CLSA’s earlier recommendation of “buy.” While the brokerage has raised HPCL’s price target to ₹360 from ₹345, it projects Indian Oil’s shares to fall 20% and BPCL’s shares to fall 9% from current levels.

Interestingly, the downgrade comes barely two months after CLSA had upgraded these stocks citing valuation comfort as one of the reasons.

Shares of Indian Oil rallied 25% in November and 16% in December, while HPCL shares gained 41% in November and 15% in December. BPCL had risen 25% in November, while rising a modest 3% in the last month of the calendar year.

The brokerage attributed the recent rally in these stocks to a sharp reversal in spot marketing margins due to falling oil prices.

CLSA believes that all three stocks are trading at a premium of over 30% to their global peer average EV/EBITDA multiple of 4.5 times, which may be tough to sustain.

It further said that the current prices are baking in lofty Gross Refining Margin estimates for financial year 2025, which may be tough to achieve due to the large refining capacity additions expected in 2024.

CLSA also expects crude prices to recover as investor sentiment on crude hit an extreme low in December. “Even in the absence of a crude price reversal, a cut in retail prices should normalise marketing margins in this quarter ahead of elections.

Shares of HPCL, BPCL and Indian Oil are trading with losses of up to 2% on Thursday post the downgrade. While 2023 was the best year for Indian Oil since 2007, it was the best for HPCL since 2009. Both stocks had gained nearly 70% last year.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

 Daily Newsletter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

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Oil Fluctuates as Traders Assess China’s Vow, Unrest in Libya

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today's market

index Price Change
nifty 50 ₹16,986.00 -72.15
sensex ₹1,882.60 +28.30
nifty IT ₹2,206.80 +30.85
nifty bank ₹1,318.95 -14.95
index Price Change
nifty 50 ₹16,986.00 -7.15
sensex ₹1,882.60 +8.30
nifty IT ₹2,206.80 +3.85
nifty bank ₹1,318.95 -1.95
index Price Change
nifty 50 ₹16,986.00 -72.15
sensex ₹1,882.60 +28.30
nifty IT ₹2,206.80 +30.85
nifty bank ₹1,318.95 -14.95
index Price Change
nifty 50 ₹16,986.00 -7.15
sensex ₹1,882.60 +8.30
nifty IT ₹2,206.80 +3.85
nifty bank ₹1,318.95 -1.95
index Price Change
nifty 50 ₹16,986.00 -7.15
sensex ₹1,882.60 +8.30
nifty IT ₹2,206.80 +3.85
nifty bank ₹1,318.95 -1.95

Currency

Company Price Chng %Chng
Dollar-Rupee 73.3500 0.0000 0.00
Euro-Rupee 89.0980 0.0100 0.01
Pound-Rupee 103.6360 -0.0750 -0.07
Rupee-100 Yen 0.6734 -0.0003 -0.05
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Indian Oil Q1 Results: Petchem business weak while refining margins miss estimates

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

 Listen to the Article (6 Minutes)

Summary

The company’s GRM for the June quarter stood at $8.34 per barrel, compared to a CNBC-TV18 estimate of $9.2 per barrel.

Shares of Indian Oil Corporation fell on Friday after the company’s June quarter earnings saw its gross refining margin missing street expectations.

The company’s GRM for the June quarter stood at $8.34 per barrel, compared to a CNBC-TV18 estimate of $9.2 per barrel.

Brokerage firm Jefferies wrote in its note this morning that the earnings momentum has turned negative with narrowed discount on Russian Crude. “This will more than offset the recent GRM improvement,” the note said. Elevated crude price is narrowing the market spread, according to the brokerage.

West Texas Intermediate Crude crossed the $80 per barrel mark on Thursday for the first time since April.

For the June quarter, revenue for the company was in-line with expectations, while the EBITDA margin was 20 basis points higher than the poll.

When compared to the March quarter, the company’s revenue was flat, while margin expanded by over 300 basis points.

For the company’s various segments, the petroleum products EBIT rose to Rs 18,720 crore from Rs 11,686 crore in the March quarter, while Petchem EBIT fell to Rs 88 crore from Rs 295 crore in March.

Shares of Indian Oil Corporation are trading 3.1 percent lower at Rs 95.55.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

 Daily Newsletter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Previous Article

Oil Fluctuates as Traders Assess China’s Vow, Unrest in Libya

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today's market

index Price Change
nifty 50 ₹16,986.00 -72.15
sensex ₹1,882.60 +28.30
nifty IT ₹2,206.80 +30.85
nifty bank ₹1,318.95 -14.95
index Price Change
nifty 50 ₹16,986.00 -7.15
sensex ₹1,882.60 +8.30
nifty IT ₹2,206.80 +3.85
nifty bank ₹1,318.95 -1.95
index Price Change
nifty 50 ₹16,986.00 -72.15
sensex ₹1,882.60 +28.30
nifty IT ₹2,206.80 +30.85
nifty bank ₹1,318.95 -14.95
index Price Change
nifty 50 ₹16,986.00 -7.15
sensex ₹1,882.60 +8.30
nifty IT ₹2,206.80 +3.85
nifty bank ₹1,318.95 -1.95
index Price Change
nifty 50 ₹16,986.00 -7.15
sensex ₹1,882.60 +8.30
nifty IT ₹2,206.80 +3.85
nifty bank ₹1,318.95 -1.95

Currency

Company Price Chng %Chng
Dollar-Rupee 73.3500 0.0000 0.00
Euro-Rupee 89.0980 0.0100 0.01
Pound-Rupee 103.6360 -0.0750 -0.07
Rupee-100 Yen 0.6734 -0.0003 -0.05
Quiz
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Indian Oil shares hit 52-week high as board considers fundraising via rights issue

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

 Listen to the Article (6 Minutes)

Summary

IOC shares climbed 2.63 per cent to hit a fresh one-year high of Rs 101.25. With this, the stock is up 26.73 percent so far this year and 36 percent in the last one-year period. The stock has an average share price target of Rs 102.29, representing an upside of 3.48 percent from the last price of 98.85.

Shares of government-owned oil marketing company, Indian Oil Corporation Limited (IOCL) breached the Rs 100 level to hit a fresh 52-week high of Rs 101.25 apiece in Friday’s trade, as the board of the company will consider fundraising plans through rights issue of equity shares later in the day.

IOC shares climbed 2.63 per cent to hit a fresh one-year high of Rs 101.25. With this, the PSU stock is up 26.73 percent so far this year and 36 percent in the last one-year period. The stock has an average share price target of Rs 102.29, according to data from Trendlyne. The consensus estimate represents an upside of 3.48 percent from the last price of 98.85.

The state-owned oil refiner’s proposed rights issue is seen strengthening its capex spending and the credibility of its emission-reduction plans. IOC’s rights issue, if considered, will be subject to various statutory approvals as may be required, the oil company said in a statement.

The government, which is the majority owner of the company, is likely to subscribe to the rights issue and infuse equity in the company.

Recently, Fitch Ratings said that capital raising plans of Oil Marketing Companies (OMCs), including IOC, should strengthen their capex spending and the credibility of their emission-reduction plans. An injection of capital from the government would provide further evidence for assumption that the OMCs would receive extraordinary sovereign support if needed, the key factor underpinning their stable ratings, the credit rating agency said.

OMCs have suffered significant losses in the first half of previous fiscal FY23 on the back of high crude oil prices amid Russia’s invasion of Ukraine. Shares of OMCs have surged lately as fund raising plans of the companies have enthused investors.

In the last one-month period, shares of state-owned oil refiners — Bharat Petroleum Corporation Ltd, IOC, Hindustan Petroleum Corp Ltd — have risen 10-16 percent and around 18-33 percent during the past three months.

BPCL’s board of directors had on June 28 approved a proposal for raising capital upto an amount not exceeding Rs 18,000 crore through rights issue.

There is an expectation that HPCL will also come up with a proposal for an equity issue. The company is said to be looking at a preferential share allotment to the government.

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index Price Change
nifty 50 ₹16,986.00 -72.15
sensex ₹1,882.60 +28.30
nifty IT ₹2,206.80 +30.85
nifty bank ₹1,318.95 -14.95
index Price Change
nifty 50 ₹16,986.00 -7.15
sensex ₹1,882.60 +8.30
nifty IT ₹2,206.80 +3.85
nifty bank ₹1,318.95 -1.95
index Price Change
nifty 50 ₹16,986.00 -72.15
sensex ₹1,882.60 +28.30
nifty IT ₹2,206.80 +30.85
nifty bank ₹1,318.95 -14.95
index Price Change
nifty 50 ₹16,986.00 -7.15
sensex ₹1,882.60 +8.30
nifty IT ₹2,206.80 +3.85
nifty bank ₹1,318.95 -1.95
index Price Change
nifty 50 ₹16,986.00 -7.15
sensex ₹1,882.60 +8.30
nifty IT ₹2,206.80 +3.85
nifty bank ₹1,318.95 -1.95

Currency

Company Price Chng %Chng
Dollar-Rupee 73.3500 0.0000 0.00
Euro-Rupee 89.0980 0.0100 0.01
Pound-Rupee 103.6360 -0.0750 -0.07
Rupee-100 Yen 0.6734 -0.0003 -0.05
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Oil companies renew push for fuel price hike amid heavy losses, forex woes

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Summary

Oil marketing companies IOC, HPCL and BPCL incurred huge losses in the quarter gone by as the rupee weakened, prompting them to make a fresh pitch to the government for an increase in fuel prices.

Oil marketing companies (OMCs) in India are pushing for a fuel price hike citing losses due to forex fluctuations and the depreciation of the rupee, which have put them under tremendous financial strain as the primary reasons for their request.

Sources told CNBC-TV18 that the losses incurred by the companies have prompted them to make a renewed pitch to the government for an increase in fuel prices.

The losses suffered by companies such as Indian Oil Corporation (IOC) and Hindustan Petroleum Corporation Limited (HPCL) for the April to December period in FY23 were in excess of Rs 12,000 crore. 

Also read: Indian Oil clarifies Adani Ports gas deal after Mohua Moitra tweet

Additionally, the forex losses incurred by IOC and Bharat Petroleum Corporation Limited (BPCL) in the April-December period of FY23 are over Rs. 9,300 crore. This has put the companies in a difficult position, and they are looking to recover some of their losses by increasing fuel prices.

The sources added that the OMCs are still making losses on diesel despite some marginal profits in the third quarter of FY23.

Also read: Commodity Champions | 2022 was a year of uncertainty — 2023 is no less, says Vandana Hari

The companies are also facing pressure from a price freeze on petrol and diesel, as well as a windfall tax, which is eroding their margins. The windfall tax was imposed in the wake of rising crude oil prices, and it has been impacting the OMCs’ profitability.

The situation is not ideal for the companies, and they are looking for a way to recoup their losses. As per sources, the OMCs are relying on other businesses to recover some of their losses, but this is not a sustainable solution in the long term.

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Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

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index Price Change
nifty 50 ₹16,986.00 -72.15
sensex ₹1,882.60 +28.30
nifty IT ₹2,206.80 +30.85
nifty bank ₹1,318.95 -14.95
index Price Change
nifty 50 ₹16,986.00 -7.15
sensex ₹1,882.60 +8.30
nifty IT ₹2,206.80 +3.85
nifty bank ₹1,318.95 -1.95
index Price Change
nifty 50 ₹16,986.00 -72.15
sensex ₹1,882.60 +28.30
nifty IT ₹2,206.80 +30.85
nifty bank ₹1,318.95 -14.95
index Price Change
nifty 50 ₹16,986.00 -7.15
sensex ₹1,882.60 +8.30
nifty IT ₹2,206.80 +3.85
nifty bank ₹1,318.95 -1.95
index Price Change
nifty 50 ₹16,986.00 -7.15
sensex ₹1,882.60 +8.30
nifty IT ₹2,206.80 +3.85
nifty bank ₹1,318.95 -1.95

Currency

Company Price Chng %Chng
Dollar-Rupee 73.3500 0.0000 0.00
Euro-Rupee 89.0980 0.0100 0.01
Pound-Rupee 103.6360 -0.0750 -0.07
Rupee-100 Yen 0.6734 -0.0003 -0.05
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Indian Oil Earnings Preview: Lower crude prices to aid marketing segment rebound

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Summary

OMCs are currently making some loss on diesel and marginal gains on petrol.

Indian Oil Corporation Ltd., India’s largest state-run oil refiner is likely to return to profitability in the December quarter, after two consecutive quarters of losses, in which it lost over Rs 2,000 crore.

The rebound is likely to be led by the marketing segment, which will be aided by a decline in crude oil prices.

While the company may report a profit worth over Rs 3,000 crore during the quarter, its topline may decline on a sequential basis, according to a CNBC-TV18 poll.

Indian Oil used 50 percent of the one-time grant of Rs 22,000 crore given by the government to compensate the three OMCs on their LPG under recoveries.

Under recoveries is the gap between the cost and the selling price of fuel. In case the selling price is lower than the cost price, higher is the under recoveries.

It is unclear whether a similar grant would be made this time as well.
CNBC-TV18 had reported earlier this month citing sources that state-run Oil Marketing Companies (OMCs) – HPCL, BPCL and Indian Oil Corporation were seeking compensation of as much as Rs 50,000 crore to cover up for the losses that they have incurred due to the freeze in fuel prices.
As an immediate measure, companies are of the view that diesel prices can be hiked by Rs 2-3 per litre, according to sources, who also said that the OMCs are currently making some loss on diesel and marginal gains on petrol.

Refinery throughput is likely to rise 3 percent from last year and 12 percent from September to 18 million metric tonnes, led by a utilisation ramp-up at its refineries.

However, the petchem business is likely to remain subdued as the number of polyethylene (PE) and polypropylene cracks continue to decline on a sequential basis.

Reported refining margin of $15 per barrel is likely to aid Indian Oil the most among its peers. The figure in the September quarter stood at $18.5 per barrel.

On the valuation front, Indian Oil Corporation trades at 7x Earnings per Share (EPS) for financial year 2024, compared to BPCL’s 8x and HPCL’s 5.5x.

Shares of Indian Oil have remained flat over the last 12 months. The stock has gained 5 percent in January.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

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Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

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index Price Change
nifty 50 ₹16,986.00 -72.15
sensex ₹1,882.60 +28.30
nifty IT ₹2,206.80 +30.85
nifty bank ₹1,318.95 -14.95
index Price Change
nifty 50 ₹16,986.00 -7.15
sensex ₹1,882.60 +8.30
nifty IT ₹2,206.80 +3.85
nifty bank ₹1,318.95 -1.95
index Price Change
nifty 50 ₹16,986.00 -72.15
sensex ₹1,882.60 +28.30
nifty IT ₹2,206.80 +30.85
nifty bank ₹1,318.95 -14.95
index Price Change
nifty 50 ₹16,986.00 -7.15
sensex ₹1,882.60 +8.30
nifty IT ₹2,206.80 +3.85
nifty bank ₹1,318.95 -1.95
index Price Change
nifty 50 ₹16,986.00 -7.15
sensex ₹1,882.60 +8.30
nifty IT ₹2,206.80 +3.85
nifty bank ₹1,318.95 -1.95

Currency

Company Price Chng %Chng
Dollar-Rupee 73.3500 0.0000 0.00
Euro-Rupee 89.0980 0.0100 0.01
Pound-Rupee 103.6360 -0.0750 -0.07
Rupee-100 Yen 0.6734 -0.0003 -0.05
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How India seeks to end tuberculosis by 2025, five years before deadline

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Summary

The Health Ministry said the anti-TB campaign, as part of IndianOli’s CSR initiative, aims to ensure early identification of presumptive TB and prompt diagnosis using high-sensitivity diagnostic tests at the doorstep. The drive will focus on Uttar Pradesh and Chhattisgarh, which have the highest burden of TB cases among large states in India.

IndianOil (Indian Oil Corporation Limited) and the Central TB Division for Uttar Pradesh and Chhattisgarh under the Ministry of Health and Family Welfare signed a memorandum of understanding (MoU) on Wednesday, December 28, to undertake an intensified tuberculosis elimination drive and realise India’s commitment to end the disease by 2025.

The MoU was signed in the presence of Union Minister of Health and Family Welfare Mansukh Mandaviya and Union Minister of Petroleum and Natural Gas and Housing and Urban Affairs Hardeep Singh Puri.

According to the Ministry of Health and Family Welfare, “The anti-TB campaign, as part of IOCL’s corporate social responsibility (CSR) initiative aims to ensure early identification of presumptive TB and prompt diagnosis using high-sensitivity diagnostic tests at the doorstep. ”

The drive also aims to offer sustainable and equitable access to free high-quality TB treatment, care, and support services to the people of Uttar Pradesh and Chhattisgarh.

Also Read: Tuberculosis cases rise globally for the first time in years, says WHO

Mandaviya said these MoUs are of immense importance in eliminating the menace of TB and will bolster the vision of the Prime Minister Modi to end tuberculosis in India by 2025.

“As part of the holistic governance approach, both ministries have collaborated through this MoU. This agreement will bolster Hon’ble Prime Minister Shri Narendra Modi’s vision to end tuberculosis in India by 2025, five years ahead of the sustainable development goal (SDG).”

The diagnostic support provided as part of the MoU will strengthen the efforts to identify TB patients enabling timely treatment, he added.

Highlighting the achievements under Nikshay 2.0 initiative, which was recently launched by the president, the minister said,  “Within 15 days of the launch of the scheme, all 12 lakh identified and consented TB patients in India were covered by Nikshay Mitras who provide them nutrition kits and other support,” he said.

Also read: India may see surge in COVID cases in January: Official

Petroleum Minister Hardeep Singh Puri expressed gratitude to Indian Oil for taking the initiative and bringing it to a point of implementation.

He said, “This milestone MoU is an affirmation of the Indian energy sector’s resolve to align with Hon’ble PM’s vision to enhance the robust healthcare system in India” and stressed that the health sector has always taken primacy for CSR initiatives of the Petroleum Ministry.

The two states, Uttar Pradesh and Chhattisgarh, share the highest burden of TB cases among large states in India. With this initiative, IndianOil has emerged as the first corporate to supplement state efforts in Active Case Finding campaign (ACF) by investing close to Rs. 64 crore in all 75 districts of UP, covering approximately 10 percent of its population once a year for three years.

IndianOil will also introduce 18 mobile medical vans equipped with cutting-edge diagnostic technology in Uttar Pradesh.  This would aid diagnosis of TB in rural areas and hard-to-reach communities, leading to improved early case detection and thereby ensuring early treatment.

IndianOil will also provide a cost-effective, novel molecular diagnostic machine, which will improve access, availability, and utilisation of TB diagnostic services in aspirational districts of UP and remote tribal areas of Chhattisgarh.

In addition to providing Truenat machines in 18 mobile medical vans being introduced for UP, IndianOil will provide approximately 100 of these machines in all tuberculosis units of all the eight aspirational districts of UP (Bahraich, Balrampur, Chandauli, Chitrakoot, Fatehpur, Shravasti, Siddharthnagar and Sonbhadra) and community health centres (CHCs) in the state of Chhattisgarh. Moreover, the company will provide handheld x-ray units in UP and Chhattisgarh.

Also Read: Over 1.5 million people had missed or delayed TB diagnosis in 2020 due to COVID: Study

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

 Daily Newsletter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Previous Article

Oil Fluctuates as Traders Assess China’s Vow, Unrest in Libya

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today's market

index Price Change
nifty 50 ₹16,986.00 -72.15
sensex ₹1,882.60 +28.30
nifty IT ₹2,206.80 +30.85
nifty bank ₹1,318.95 -14.95
index Price Change
nifty 50 ₹16,986.00 -7.15
sensex ₹1,882.60 +8.30
nifty IT ₹2,206.80 +3.85
nifty bank ₹1,318.95 -1.95
index Price Change
nifty 50 ₹16,986.00 -72.15
sensex ₹1,882.60 +28.30
nifty IT ₹2,206.80 +30.85
nifty bank ₹1,318.95 -14.95
index Price Change
nifty 50 ₹16,986.00 -7.15
sensex ₹1,882.60 +8.30
nifty IT ₹2,206.80 +3.85
nifty bank ₹1,318.95 -1.95
index Price Change
nifty 50 ₹16,986.00 -7.15
sensex ₹1,882.60 +8.30
nifty IT ₹2,206.80 +3.85
nifty bank ₹1,318.95 -1.95

Currency

Company Price Chng %Chng
Dollar-Rupee 73.3500 0.0000 0.00
Euro-Rupee 89.0980 0.0100 0.01
Pound-Rupee 103.6360 -0.0750 -0.07
Rupee-100 Yen 0.6734 -0.0003 -0.05
Quiz
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Should Elon Musk be able to buy Twitter?