Hindustan Petroleum Corp. is Morgan Stanley's top preference among oil marketing companies, amid rising oil supply.
"HPCL is a levered play from rising global oil supply and benefits from improved refinery hardware," the report stated. The brokerage predicts HPCL's Ebitda to go up to $4.5 billion in fiscal 2028.
Additionally, the peak of its capital expenditure is over and HPCL is operating in a new investment cycle, the report mentioned. An investment cycle is a period where companies make capital expenditures, dispose fixed assets and modify long term investments.
The research firm expects the rating to change as the quality of the earnings refine "against a backdrop of well-supplied oil markets, which should lead to bigger discounts in crude sourcing in 2025 and also higher - 30% above mid-cycle-integrated margins".
-
Indian Markets Turning Corner After Two Tough Years, Says Sandeep Tandon -
NDTV Profit Ignite 2026: Experts See Opportunity In Equities, Stay Bullish For Long-Term -
Buy Right, Sit Tight Does Not Work for Individual Stocks, Says Dinshaw Irani -
'Worst Is Behind': Quant MF Sees Market Bottom, Flags 'Extreme Euphoria' In Midcaps -
India's Mutual Fund Industry Could Become A $1 Trillion Opportunity, Say Fund Managers -
'Foreign Investors Are Baraatis': Raamdeo Agrawal's Take On LTCG Tax -
Stay Invested Through Market Cycles: Raamdeo Agrawal at NDTV Profit Ignite -
Ramesh Damani Remains Bullish On India For Next 20-30 Years, Sees Bargains Amid Market Weakness -
CAS Came After A Long Consultation Process: SEBI Chairman Tuhin Kanta Pandey AT NDTV PROFIT IGNITE -
Aim To Cut FPI Onboarding Time From Mth To Five Days: SEBI Chairman Tuhin Kanta Pandey AT NDTV PROFI
It maintained a bullish stance on all the three major OMCs — IOLC, BPCL, and HPCL — on account of expansion in the natural gas value chain and other factors like "global tailwinds from oversupplied oil markets in 2025; gas taking market share from diesel in China; domestic tailwinds of strong fuel demand, improving FCF, and stable fuel prices —all point to the next leg of outperformance", as per the report.
The firm also predicts a 4% compound growth rate for oil consumption in India till fiscal 2028.
HPCL, IOCL, and BPCL were all trading in the red on Tuesday.
Essential Business Intelligence, Sharp Market Insights, Practical Personal Finance Advice, Daily Fuel, Gold and Silver Prices and Latest Stories — On NDTV Profit.