HPCL, IOC, BPCL Share Price Tumble After Petrol, Diesel Rate Cuts; Here’s What Analysts Recommend
Shares of Oil Market Companies (OMCs) – Indian Oil Corporation, BPCL, and HPCL — tumbled on Friday after the petrol and diesel prices were cut by Rs 2 per litre each. The stock of Hindustan Petroleum Corporation Limited (HPCL) plummeted 6.29 per cent to settle at Rs 468.70 on the BSE. During the day, it dropped 9.82 per cent to Rs 451.
Shares of Indian Oil Corporation (IOC) fell by 5.46 per cent to Rs 161.15. In intra-day trade, it tanked 9.88 per cent to Rs 153.60.
Bharat Petroleum Corporation Limited (BPCL) dipped 3.74 per cent to finish at Rs 586.25 after dropping 8.20 per cent to Rs 559.05 during the day.
HPCL Share Price Target 2024
ICICI Securities in its latest report maintained ‘BUY’ rating on the state-owned oil marketing company. The analysts at at the domestic brokerage firm recommended a share price target of Rs 625 apiece.
The brokerage in its report said that at the current price, valuations of 4.2x FY26E PER and 5.3x FY26E EV/EBITDA provide enough leeway for further outperformance over the next 12-18 months. “We believe that valuations are still at attractive levels and do not fully reflect the structural changes in scale and earnings profile of the company over the next three years. Our valuation for the company, at ~5.3x FY26E EV/EBITDA for the refining and marketing business,” it said in its report.
It also highlighted the key downside risks including execution delays and longer stabilisation time of the expanded capacity, prolonged downturn in both refining and petchem cycles and the sustained period of uneconomic fuel price cuts beyond what we expect as of now.
This is the first revision in rates in nearly two years. Petrol cost in the national capital will be Rs 94.72 a litre as compared to Rs 96.72 per litre previously while the price of diesel will now come to Rs 87.62 as opposed to Rs 89.62 currently, a price notification of state-owned fuel retailers said. In the equity market, the BSE benchmark ended with a decline of 453.85 points or 0.62 per cent at 72,643.43.
(PTI Inputs)
(Disclaimer: Recommendations, suggestions, views, and opinions given by experts are their own. These do not represent the views of TN Network.)
