BUY Chennai Petroleum - Citi
Thursday, July 12, 2007Citigroup in a report released a while ago has maintained BUY rating on Chennai Petroleum Corp Ltd [CPCL] with target price of Rs 360.
Citi maintained Buy/Low Risk (1L) rating on CPCL with a target price of Rs 360. CPCL looks well positioned to capitalize on the sustained upturn in refining margins. In this context, CPCL's capacity expansion by 40% (up from 7.5MTPA to 10.5MTPA) and increased complexity appear timely.
Citi raised FY08-09 estimates by 19- 25% on the back of sustained strength in the refining cycle and reduced chances of subsidy burden. Introducing FY10E. The new target of Rs 360 is based on EV/EBITDA of 5.5x mid-FY09E, at the high end of its historical trading range but at a meaningful discount to peers (6.0-7.0x). Dividend yield of 5.6% provides downside support.
Other Equity Analysis
- Buy Fortis Healthcare - Citigroup
- Buy TNPL + PTC - ICICI Research
- BUY Tech Mahindra - Citigroup
- Buy Amtek India+ Auto - Citigroup
- Saregama to Outperform - ICICI Sec
- BUY Container Corporation - Kotak Securities
- Morgan Stanley Underweight on GMR Infrastructure
- Indian Banks - Results Expectations
- Buy Maruti Udyog - Citi
- Buy Mahindra and Mahindra - Citigroup
