Shares of state-run Oil Marketing Companies (OMCs) such as Bharat Petroleum Corporation Ltd. (BPCL), Hindustan Petroleum Corporation Ltd. (HPCL), and Indian Oil Corporation Ltd. (IOC) were trading with gains of up to 4% on Friday, July 4.Swiss investment bank UBS has maintained a ‘Buy’ rating on BPCL and raised its price target to ₹390 per share.
It also reiterated a ‘Buy’ recommendation on HPCL, increasing the stock’s price target to ₹500.
For IOC, UBS has maintained its ‘Buy’ rating with a target price of ₹180 per share.
According to UBS, OMCs stand to benefit from high marketing margins in a stable retail fuel price environment.The brokerage mentioned that some of the potential earnings upside may already be priced in, with OMC stocks rising 15-22% in Q1FY26.
It also reiterated a ‘Buy’ recommendation on HPCL, increasing the stock’s price target to ₹500.
For IOC, UBS has maintained its ‘Buy’ rating with a target price of ₹180 per share.
According to UBS, OMCs stand to benefit from high marketing margins in a stable retail fuel price environment.The brokerage mentioned that some of the potential earnings upside may already be priced in, with OMC stocks rising 15-22% in Q1FY26.
However, UBS remains positive and expects further consensus earnings upgrades and strong free cash flow (FCF) generation to offset concerns about high capex.
UBS added that the consensus FY26 marketing margin estimate of ₹5.0 per litre appears conservative, especially when compared to FY25 levels of ₹6.0–7.0 per litre and current spot margins of ₹11.0 per litre.
BPCL shares are trading 2.91% higher at ₹341.15, while those of HPCL and IOC are trading 0.63% higher at ₹439.35, and 0.84% higher at ₹149.11.
First Published: Jul 4, 2025 12:10 PM IS
