HPCL's Q1FY20 result came below our forecast mainly driven by higher inventory loss. Revenue was up 5% YoY to Rs709bn while EBITDA/PAT was down 48.5%/52.8% YoY to Rs16.4/8.1bn. Reported GRM stood at US$0.8/bbl as against US$7.2/bbl in Q1FY19 whereas core GRM stood in-line to our forecast at US$3.3/bbl. The company reported inventory loss of Rs5.4bn, adjusting to which the numbers are largely in-line to our forecast. We have cut our EBITDA forecast for FY20E by 10% to factor in high inventory loss and kept the same for FY21E. We continue to maintain our TP of Rs288 based on 5.5x on EV/EBITDA (Rs273/share) and 20% discount to its investment in MRPL and...