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Business
Sell or hold? BPCL, HPCL and Indian Oil face critical forecast
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Negative Outlook for These Shares
Kotak Securities has released a report on oil marketing companies. It has a negative outlook on Indian Oil, BPCL, and HPCL. It is advising to sell these shares.
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Outlook for PSU Oil Stocks
Brokerage Kotak Securities has given a downside target of up to 44% on these three government shares compared to the close on March 21.
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Why the Fear of Decline in Oil Stocks?
The brokerage firm says that the demand for crude oil is weak globally. The price of crude oil cannot remain below $70 per barrel for long, which may have an impact.
Why Oil Stocks Should Be Sold?
Analysts said about oil marketing companies that cheaper crude may be better, but retail pricing has remained stable for a long time due to the lack of freedom to set prices.
Petrol-Diesel Prices May Be Cut
The brokerage believes that petrol and diesel prices may be cut in the coming times, which may lead to a decline in margins. The flow of expensive American crude may also increase.
Indian Oil Share Price Target
The brokerage has advised selling Indian Oil shares. Its target price has been reduced to ₹85, which was previously ₹90. On March 21, this share closed at ₹131.
BPCL Share Price Target
BPCL shares have also been advised to be sold. Its target price has been reduced from ₹240 to ₹220. On February 21, the share closed at ₹280.
HPCL Share Price Target
The brokerage firm has also advised to Sell HPCL shares. Its target has been reduced from ₹210 to ₹200. On February 21, the share closed at ₹357.
Note
Be sure to consult your market expert before making any kind of investment.