BPCL shares jumped nearly 3% after Avendus reaffirmed its ‘Buy’ rating on the stock with a target price of ₹400 per share. As of 10:44 AM, the shares were trading 1.53% higher at Rs 268.62.
According to analysts, current valuations are 15-25% lower than the 10-year average Price-to-Book (P/B) ratio. Additionally, lower crude oil prices, likely to remain under $75 per barrel, and stronger gross refining margins (GRMs) support the stock’s outlook.
Avendus also upgraded HPCL to ‘Buy’ with a target of ₹460 and IOC to ‘Buy’ with a target of ₹155, citing similar valuation advantages and industry tailwinds. The brokerage highlights that a slowdown in global refinery additions in CY25-26 could drive a revival in refining margins. Furthermore, an expansion in auto fuel marketing margins and a reduction in LPG losses are expected to strengthen earnings in FY26.
The firm anticipates a robust first half of FY26, with profitability potentially exceeding 70% of full-year estimates.
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