Goldman Sachs has raised its target price and earnings on Hindustan Petroleum Corporation Ltd (HPCL). The new target price is Rs 415, which is 55 percent potential upside from current levels.
According to the brokerage house, oil marketing companies (OMCs) are passing on USD 75 per barrel to the end consumer, which means that the margins will be at least one quarter ahead of the estimates.
The firm is raising its FY22 marketing margins by 5 percent and believes that FY23 will be the first year when both the fuel margins and marketing margins will rise together and that will have an impact on the earnings as well.
Watch the accompanying video of CNBC-TV18’s Nimesh Shah for more details.
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(Edited by : Dipika Ghosh)
First Published: IST