BSE Energy index surges 3%, hits record high; MRPL zooms 20%, RIL up 4.5%

Shares of Reliance Industries (RIL) was close to its record high level of Rs 2,750 touched on October 19, 2021.

The S&P BSE Energy index hit a record high of 8,667, up 3 per cent on the BSE in Tuesday’s intra-day trade, on strong rally in state-owned companies Mangalore Refinery & Petrochemicals (MRPL), Chennai Petroleum Corporation, GMDC, Coal India and Hindustan Petroleum Corporation (HPCL). These stocks gained between 5 per cent and 20 per cent intra-day, while private sector major Reliance Industries (RIL) added 4.5 per cent.

At 01:36 PM; the S&P BSE Energy index, the top gainer among sectoral indices, was up 3 per cent as compared to 0.31 per cent rise in the S&P BSE Sensex. The energy index surpassed its previous high of 8,595.93 which was touched in October 2021.

Among individual stocks, MRPL was locked in the 20 per cent upper circuit at Rs 63.45, also its 52-week high, on the back of over three-fold jump in trading volumes. A combined around 56 million equity shares had changed hands on the NSE and BSE till the time of writing of this report. In the past one month, the stock haa zoomed 53 per cent as compared to 1 per cent decline in the S&P BSE Sensex.

In Q3FY22, MRPL had reported net profit of Rs 589 crore as against a net loss of Rs 214 crore in Q3FY21 supported mainly by higher crude throughput and better GRMs. MRPL took multiple initiatives to improve the revenue from marketing margins in domestic, exports and B2B (business to business) arrangements.

Analysts at Kotak Securities expect MRPL to report an EPS of Rs 6.8 in FY23E (unchanged) and Rs 8.3 in FY24E (earlier Rs 8). "With the commissioning of desalination plant, one of the major risks faced by the company with respect to water availability is reduced," the brokerage firm had said in its Q3 result update.

Meanwhile, the ongoing concerns over the supply of refined products and switch from costly gas to oil has led to a rise in SG complex GRM to $12/bbl in the past few days. International Energy Agency (IEA) expects the ongoing Russia-Ukraine war to reduce refining throughput by ~1.1mnbopd.

"This will result in continued high refining margin till supply concerns abate. Standalone refiners like MRPL stand to benefit the most from rising GRMs. However, high debt and operational inefficiencies call for a leap of faith in the company," brokerage firm Motilal Oswal Financial Services had said in a March report.

Separately, Coal India surged 7 per cent to Rs 202.85 after the company said it supplies to power sector scaled up 14 per cent amid rising demand. The stock was close to its 52-week high level of Rs 203.85, touched on October 6, 2021.

Amid the spiraling power generation, Coal India raised its supplies to thermal power stations by 14.2 per cent during the first half of April’22 compared to same period last April. The company had accelerated its production to 26.4 MTs during the first half of April’22 registering 27 percent year-on-year growth. The company is heading for its highest April production ever. Output expansion in volume terms was 5.7 MTs, Coal India said in a press release. CLICK HERE FOR FULL REPORT

RIL, too, was up 4.5 per cent to Rs 2,658.95, and was close to its record high level of Rs 2,750 touched on October 19, 2021. According to ICICI Securities, RIL's consolidated EBITDA is estimated to grow 66.3 per cent year-on-year (YoY) to Rs 38,824 crore in Q4FY22, mainly led by O2C and digital service segments. On a QoQ basis, it is expected to grow 30.7 per cent led by O2C segment.

COMPANY	LATEST	PREV CLOSE	GAIN(%)
M R P L	63.45	52.90	19.9
C P C L	212.45	181.80	16.9
G M D C	212.90	195.15	9.1
Panama Petrochem	354.60	329.20	7.7
Coal India	202.40	189.40	6.9
H P C L	296.15	283.15	4.6
Reliance Industr	2656.30	2544.15	4.4
Confidence Petro	67.15	64.60	4.0
I O C L	132.40	128.05	3.4
Deep Industries	268.50	260.35	3.1
Hind.Oil Explor.	201.40	196.15	2.7
B P C L	381.40	371.70	2.6
O N G C	179.45	175.80	2.1
Oil India	240.20	235.65	1.9