Leading brokerage firm ICICI Securities has a bullish outlook on Hindustan Petroleum Corporation Limited (HPCL), the major oil marketing company in the public sector (PSU). The company’s shares have surged by 45% in the past three months due to its expansion of refining capacity and several positive factors making it an attractive investment in the PSU stock. The brokerage firm has raised its target price for the stock by more than 50%. Currently trading at Rs. 377, the stock reached a 52-week high of Rs. 396 on December 7th.
ICICI Securities has also increased its target price for the shares of HPCL based on the current price, by more than 45%. The previous target price was Rs. 365. The brokerage firm cites expectations of premium refining margins compared to the benchmark Singapore refining margin of 3-4 dollars per barrel for HPCL. The retail margin in fuel is also improving, and there is no possibility of a price cut in fuel prices after the government’s significant victory in the assembly elections. All these factors are playing a positive role for the company.
ICICI Securities has strengthened the earnings growth outlook for HPCL for the financial years 2024-26. The brokerage firm believes that the stock is still attractive at its current valuation and can provide good returns in the long term. Based on the current price, the stock has delivered bumper returns of 9% in a week, 26% in a month, 45% in three months, and 60% so far this year.
1. Hindustan Petroleum Corporation Limited (HPCL) is a leading oil marketing company in the public sector with a bullish outlook.
2. In the past three months, HPCL’s stock has risen by 45% due to its expansion of refining capacity and positive factors attracting investment.
3. Brokerage firms have increased their target price for HPCL by more than 50%.
4. Currently, the stock is trading at Rs. 377, reaching a high of Rs. 396 on December 7.
5. ICICI Securities has recommended buying HPCL shares and increased its target price by more than 50% from the previous target of Rs. 365.
6. The brokerage firm expects HPCL to maintain a premium of 3-4 dollars per barrel over Singapore refining margin benchmark and continuous improvement in retail fuel margins.
7. With no possibility of a cut in fuel prices after the government’s victory in the assembly elections, HPCL is expected to perform well.
8. The brokerage firm has strengthened the earnings growth outlook for HPCL for the financial years 2024-26 and believes the stock is still attractively valued.
9. In the current market, HPCL has delivered bumper returns of 9% in one week, 26% in one month, 45% in three months, and 60% this year.
10. Considering these factors, HPCL is a recommended stock to buy.
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