Investec Recommends 'Sell' on HPCL, BPCL, IOC; Favors Reliance Industries
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CNBC TV18•27-02-2026, 11:15
Investec Recommends 'Sell' on HPCL, BPCL, IOC; Favors Reliance Industries
•Investec reiterates 'Sell' stance on Oil Marketing Companies (OMCs) due to unrealistic earnings outlook.
•Brokerage maintains 'Buy' rating on Reliance Industries, citing it as the preferred play on refining upcycle.
•Investec assigns 'Sell' ratings to Bharat Petroleum Corporation (₹330), Hindustan Petroleum Corporation (₹425), and Indian Oil Corporation (₹₹145).
•OMCs showed strong Q3 performance, but equity markets remain unconvinced, with stocks range-bound since November 2025 downgrade.
•Valuations are a binding constraint; OMCs trade at a 10-30% premium to historical averages, with downside risk from rising crude prices and geopolitical tensions.
