HSBC has reiterated its ‘buy’ stance on Indian oil marketing companies (OMCs), highlighting that the recent sharp correction has led these stocks to trade below their historic mean valuations. The brokerage does not foresee a deterioration in business fundamentals despite some near-term concerns.
Key insights:
- Negatives: Weakness in INR and gross refining margins (GRMs).
- Positives: Lower oil prices, strong auto fuel demand, and minimal government intervention in pricing.
Stock ratings & target prices:
- BPCL: Buy, target price ₹440
- HPCL: Buy, target price ₹450
- IOC: Buy, target price ₹170
Disclaimer: This article is for informational purposes only and should not be considered as investment advice. Please consult a financial expert before making any investment decisions.
