Antique Research reiterates its Buy rating on all three oil marketing companies (OMCs)—HPCL, BPCL, and IOC—citing a favorable operating environment. The brokerage notes that autofuel marketing margins are at a high of ₹9.8/liter, while Singapore complex refining margins have rebounded to USD 5/bbl in QTD FY25.
The firm highlights that crude oil prices are likely to remain range-bound due to a global surplus, providing comfort for sustained marketing margins. Additionally, the lowest Saudi official selling price (OSP) in 18 months, coupled with higher Russian discounts, is expected to benefit OMCs.
Valuations remain attractive at 4.2–5.1x EV/EBITDA FY27E, with dividend yields between 4.3% and 6.4%. HPCL remains Antique’s preferred pick in the sector, given its valuation and operational outlook.
