Macquarie has taken a bullish stance on India’s oil marketing companies (OMCs), upgrading Indian Oil Corporation (IOCL) to Outperform with a target price of ₹150, and Bharat Petroleum Corporation Limited (BPCL) to Outperform with a target price of ₹320. The firm continues to maintain an Outperform rating on Hindustan Petroleum Corporation Limited (HPCL) with a target price of ₹410.
The upgrade comes amid Macquarie’s view that the impact from changes in Russian crude sourcing and pricing on Indian OMCs is likely to be limited in the near term. Despite geopolitical concerns, the brokerage believes that these companies are well-positioned to navigate the evolving global oil landscape, supported by a bearish crude oil outlook and robust capacity expansion plans underway across the sector.
However, Macquarie highlights that LPG under-recoveries remain an overhang, impacting margins and profitability in this segment. Among the three OMCs, HPCL is the brokerage’s top pick, followed by BPCL and IOCL, primarily due to HPCL’s stronger earnings outlook and expansion-led growth potential.
