Goldman Sachs has maintained its “Sell” rating on Indian Oil Corporation (IOC) with a target price of ₹105, citing significant downside risks due to weaker-than-expected earnings in the refining, marketing, and petrochemical segments. The brokerage noted that IOC’s Q2 core EBITDA fell short of expectations, driven by underperformance across these key areas.
In contrast, Goldman Sachs has retained a “Neutral” stance on Hindustan Petroleum Corporation Limited (HPCL) and Bharat Petroleum Corporation Limited (BPCL). The earnings miss for HPCL was primarily attributed to its marketing segment, while BPCL’s miss was linked to weaker refining results.
Goldman Sachs continues to see IOC as facing the most substantial downside risk among oil marketing companies (OMCs) given the current challenges in its core business segments.
Disclaimer: This article is for informational purposes only and does not constitute financial advice. Please consult a financial advisor for guidance on investment decisions.
