Shares of Bharat Petroleum Corporation Limited (BPCL) and Hindustan Petroleum Corporation Limited (HPCL) rose by 2.87% and 3.48%, respectively, during today’s session following an upgrade by Goldman Sachs. The brokerage upgraded BPCL and HPCL to a “Buy” from “Hold,” with target prices set at Rs 360 per share for BPCL and Rs 400 per share for HPCL. Goldman Sachs also upgraded Indian Oil Corporation (IOC) to “Neutral” from “Sell,” with a target price of Rs 110 per share.
Key Drivers of the Surge:
The upgrades were driven by improving earnings prospects for oil marketing companies (OMCs), supported by capped crude oil prices and a recovery in free cash flow (FCF). The brokerage highlighted that the FY26/27 setup looks favorable, projecting Brent crude oil to decline to $70 by year-end and Singapore refining cracks to remain constructive. Goldman Sachs expects a 40% EBITDA CAGR for HPCL over FY25-27 and estimates a 10% FCF yield for BPCL into FY26.
Updated stock details:
BPCL shares were last trading at Rs 263.30, up from the previous close of Rs 255.95, with a market capitalization of Rs 57,054 crore. Meanwhile, HPCL shares rose to Rs 345.30, compared to the previous close of Rs 333.70, with a market capitalization of Rs 73,399 crore.
Disclaimer: The information provided is for informational purposes only and should not be considered financial or investment advice. Stock market investments are subject to market risks. Always conduct your own research or consult a financial advisor before making investment decisions. Author or Business Upturn is not liable for any losses arising from the use of this information.
