Archive · 26 Jan 2026
Motilal Oswal Sees 40% Rally in HPCL
Motilal Oswal, a brokerage firm, thinks that the stock of Hindustan Petroleum Corporation (HPCL) is a good investment.
They say it could go up by 40% in value.
Even though HPCL's recent earnings were not as high as expected, Motilal Oswal believes the company is doing better in other ways.
They are saving money by being more efficient and finishing big projects.
There are some worries about costs and taxes, but overall, Motilal Oswal thinks HPCL is a good choice for investors.
They recommend buying the stock with a target price of Rs 600.
Motilal Oswal maintains a 'Buy' rating on HPCL with a target price of Rs 600, indicating a 40% upside potential.
HPCL's Q3FY26 EBITDA was 17% below estimates due to weaker refining and marketing performance.
HPCL's internal efficiency program, Project Samriddhi 1.0, delivered savings of Rs 1,270 crore in the first nine months of the year.
Interest costs for HPCL fell to Rs 670 crore in Q3, down from Rs 930 crore in the same period last year.
HPCL's upcoming projects, including a residue upgradation facility and a petrochemical complex, are expected to boost earnings.
- Who
- Motilal Oswal, Hindustan Petroleum Corporation (HPCL)
- What
- Motilal Oswal maintains a 'Buy' rating on HPCL with a target price of Rs 600, indicating a 40% upside potential.
- When
- The analysis is based on HPCL's Q3FY26 performance and future project expectations.
- Where
- HPCL's operations and projects are primarily in India, with key facilities in Visakhapatnam and Rajasthan.
- Why
- Motilal Oswal believes HPCL's improving fundamentals, upcoming projects, and cost efficiencies justify the positive outlook.
- Company
- Hindustan Petroleum Corporation (HPCL)
- Brokerage
- Motilal Oswal
- Rating
- Buy
- Target Price
- Rs 600
- Upside Potential
- 40%
- Q3 EBITDA
- Rs 7,260 crore (17% below estimates)
- Gross Refining Margin
- USD 8.9 per barrel (7% below estimates)
- Project Samriddhi 1.0 Savings
- Rs 1,270 crore (Rs 520 crore recurring)
- Interest Costs (Q3)
- Rs 670 crore (down from Rs 930 crore YoY)
- Upcoming Projects
- Residue Upgradation Facility (Visakhapatnam), Petrochemical Complex (Rajasthan)