Indian Oil, BPCL, HPCL Richly Valued: Prabhudas Lilladher

BQ Prime’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BQ Prime’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..Prabhudas Lilladher Report.Oil marketing companies like Indian Oil Corporation Ltd., Bharat Petroleum Corporation Ltd. and Hindustan Petroleum Corporation Ltd. are likely to witness a strong Q3 performance on back of improvement in gross marketing margins on petrol and diesel. Singapore gross refining margin for Q3 to-date stands at $4.5/barrel of oil, while gross marketing margins on petrol and diesel are at Rs 8.2/(-0.6)/litre.Indian Oil/BPCL/HPCL have historically traded at long term price/book value of 1/1.3/0.8 times respectively (we exclude the period between 2014-18, during which the OMCs enjoyed higher valuations due to twin benefits of deregulation and benign oil prices) and are currently trading at 0.9/1.3/1.1 times FY24 P/BV. We downgrade our rating from ‘Hold’ to ‘Reduce’ on Indian OIL with a target price of Rs 94 based on 0.7 times FY26 P/BV. We downgrade our rating on BPCL from ‘Hold’ to ‘Reduce’ with target price of Rs 365 based on one time FY26 P/BV. Similarly, on HPCL we downgrade our rating from ‘Hold’ to ‘Sell’ with a target price of Rs 272 based on 0.7 times FY26 P/BV..Click on the attachment to read the full report:.Oil And Gas Sector Check - Upstream: A Multi-Year Upcycle Underway: Motilal Oswal.DISCLAIMERThis report is authored by an external party. BQ Prime does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of BQ Prime..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

Indian Oil, BPCL, HPCL Richly Valued: Prabhudas Lilladher

Gross marketing margins have risen in Q3 to-date however any spike in benchmark prices may impact these margins.

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Indian Oil, BPCL, HPCL Richly Valued: Prabhudas Lilladher

Gross marketing margins have risen in Q3 to-date however any spike in benchmark prices may impact these margins.

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