Synopsis: Citi remains bullish on OMC stocks, highlighting strong earnings momentum, steady government support, and attractive dividend yields, projecting potential upside of up to 38 percent.
OMC stocks are currently caught between opposing market forces, where the positive aspects are being overshadowed by perceived negatives. Analysts at Citi remain optimistic, highlighting the sector’s strong earnings momentum, consistent government backing, and attractive dividend yields.
While investor sentiment has been dampened by worries over Russian crude imports and possible fuel price cuts or excise duty increases, the recent decline in share prices is seen as an attractive entry point. Citi continues to prefer downstream players like HPCL, BPCL, and IOCL over their upstream peers.
Hindustan Petroleum refines crude oil and markets petroleum products including petrol, diesel, LPG, aviation turbine fuel, lubricants, and premium branded fuels across India and select global markets.
The company operates two major refineries located in Mumbai on the West Coast and Visakhapatnam on the East Coast, meeting domestic demand and exporting to international destinations.
The company has a market cap of Rs. 85,602.30 crore. The stock had a previous close of Rs. 399.80, opened today at Rs. 400.30, and touched a high of Rs. 402.50. This marks an increase of 0.67 percent from the previous close to today’s high. Citi has assigned a target price of Rs. 530 for the stock. Based on today’s opening price of Rs. 400.30, this translates into a potential upside of 32.4 percent.
Bharat Petroleum is an integrated oil and gas enterprise engaged in the production of oil and natural gas, refining of crude oil, and marketing and distribution of petroleum products. The company also has a focus on renewable energy.
It manufactures products such as light and middle distillates and sells them through its extensive retail network, dealers, and distributors. BPCL also caters to fuel requirements of domestic and international airlines. As a Maharatna PSU, it operates refineries in Mumbai, Kochi, Numaligarh, and Bina.
The company has a market cap of Rs. 1,38,787.63 crore. Its stock closed previously at Rs. 318.30, opened today at Rs. 318.65, and hit a high of Rs. 321. This reflects a rise of 0.84 percent from the previous close to the day’s high. Citi has set a target of Rs. 440 for BPCL. From today’s opening price of Rs. 318.65, the stock offers a potential upside of 38.08 percent.
Indian Oil Corporation, a Maharatna PSU, is India’s largest national oil company spanning the entire hydrocarbon value chain. Its operations cover refining, pipeline transport, marketing, exploration, petrochemicals, and alternative energy.
The company has a strong global footprint with subsidiaries in Sri Lanka, Mauritius, UAE, Sweden, the USA, and the Netherlands, and joint ventures with domestic and international partners.
IndianOil exports products like gasoil, jet fuel, gasoline, AVGAS, and sulphur mainly to Bangladesh, Sri Lanka, and Indonesia, while also serving as Nepal’s sole petroleum supplier since 1975.
The company has a market cap of Rs. 2,04,404.93 crore. Its stock had a previous close of Rs. 144, opened at Rs. 144 today, and climbed to a high of Rs. 145.10. This represents a gain of 0.76 percent from the previous close to today’s high. Citi has given IndianOil a target price of Rs. 190. Calculated from today’s opening price of Rs. 144, this suggests a potential upside of 32 percent.
Written By Manan Gangwar
Disclaimer
The views and investment tips expressed by investment experts/broking houses/rating agencies on tradebrains.in are their own, and not that of the website or its management. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution while investing or trading in stocks. Trade Brains Technologies Private Limited or the author are not liable for any losses caused as a result of the decision based on this article. Please consult your investment advisor before investing.
Search Topic or Keyword
Easiest Stock Screener Tool!
Best stock discovery tool with +130 filters, built for fundamental analysis. Profitability, Growth, Valuation, Liquidity, and many more filters. Search Stocks Industry-wise, Export Data For Offline Analysis, Customizable Filters.
