OMC's are well positioned to benefit from fall in crude prices, improvement in refining margins, fuel consumption growth and petchem demand growth in India.
Analysts at Choice remain bullish on Mahindra & Mahindra, Marico, and Hindustan Petroleum, assigning 'Buy' ratings to these stocks based on their strong long-term uptrend & solid technical indicators
HPCL Mittal Energy plans to invest Rs 2,600 crore at its Bathinda refinery to build polypropylene downstream industries and start fine chemical projects to expand its business
Bharti Airtel, Larsen & Toubro, Varun Beverages, Tata Consumer Products and HPCL can rally up to 20 per cent from here, explains Drumil Vithlani, Technical Research Analyst at Bonanza.
JM Financial said Brent crude is likely to remain subdued at around $65 per barrel in the near term, at least until the US mid-term elections in November 2026
Analysts at YES Securities have recommended a 'BUY' rating on Chennai Petro, MRPL, BPCL and Reliance Industries on the back of upbeat prospects for these oil refining companies.
Despite the near-term volatility, HPCL's valuations remain reasonable, the brokerage noted. The stock trades at 1.4x one-year forward price-to-book, slightly above its long-term average of 1.2x.
Antique Stock Broking reiterated 'Buy' on Hindustan Petroleum Corp., Bharat Petroleum Corp., and Indian Oil Corp, with HPCL as the top pick
Outlook on OMCs: Analysts at Motilal Oswal revised upwards the FY26/FY27 estimates for OMCs factoring in monthly LPG under recovery compensation over Nov'25-Oct'26 under revenue.
In the past six months, Nifty Midcap 150 index has outperformed the market by surging 10 per cent, as against 5.3 per cent rally in the Nifty 50.
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In the past one week, the BSE Oil & Gas index up 3.4 per cent, as compared to 0.91 per cent decline in the BSE Sensex.
LTI Mindtree stock price: Excels with top-tier quality and a significant earnings surprise, making it a robust choice for investors seeking financial stability and recent positive estimate revisions.
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Chairman Vikas Kaushal said on Tuesday HPCL had closed its gasoline-producing continuous catalytic reformer during the processing of contaminated oil that it had sourced from Hindustan Oil Exploration
Crude Oil prices have soared 7% in the last two weeks following fresh US sanctions on Russian oil imports. Back home, shares of oil exploration and marketing companies look favourably placed on charts
Religare Broking's Ajit Mishra continues to maintain a 'buy on dips' strategy and recommends focusing on opportunities with a favourable risk-reward setup
In the past two months, the stock price of HPCL has gained 15 per cent after the company said June 2025 quarter (Q1FY26) witnessed a strong operational and financial performance.
Analysts believe that OMCs now have a large margin of safety owing to low oil price and a large capex plan which gives them confidence that a normative level of earnings will still be maintained.
Nomura said that the INR's depreciation remains a headwind for OMCs and CGDs, as their input costs are dollar-linked while revenues are in rupees.