Sell or hold? BPCL, HPCL and Indian Oil face critical forecast

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.

Brokerage Kotak Securities has given a downside target of up to 44% on these three government shares compared to the close on March 21.

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.

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.

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.

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 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.

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.

Be sure to consult your market expert before making any kind of investment.