HPCL, BPCL, IOC may see further upside despite re-rating, says HSBC [Video]

Brokerage firm HSBC has further raised price targets on India’s state-run oil refiners – Hindustan Petroleum Corporation Ltd. (HPCL), Bharat Petroleum Corporation Ltd. (BPCL) and Indian Oil Corporation Ltd. (IOC). The brokerage believes that despite having re-rated, these stocks still have more room on the upside.

HSBC has maintained its “buy” recommendation on all three Oil Marketing Companies (OMCs), while raising its price target on HPCL to ₹630 from ₹375. It also expects shares of BPCL to rise to as high as ₹860.

The revised price targets imply a potential upside ranging between 23% for HPCL and 42% each for both BPCL and Indian Oil, when compared to Thursday’s closing price.

The brokerage had cited prospects of better earnings as the reason behind their upgrade. Since then, shares of HPCL have risen 52%, BPCL are up 45%, while those of Indian Oil have risen 56%.

For the near-term, HSBC expects rangebound oil prices …