Avendus: HPCL, BPCL, IOC have up to 27% upside on attractive valuations, 'buy' maintained

• Avendus maintains "buy" ratings on HPCL, BPCL, and IOC, citing attractive valuations and a strong outlook.
• HPCL has a potential upside of 27% (target ₹590), BPCL 22% (target ₹445), and IOC 12% (target ₹185) per Avendus.
• Strong H1 FY26 earnings, normalized diesel crack levels, and benign crude prices contribute to a strong outlook for OMCs.
• BPCL and HPCL are trading at a 15-20% discount to historical multiples, indicating attractive valuations.

Why It Matters: Investors could see up to 27% returns from HPCL, BPCL, and IOC, say analysts.