Shares of oil marketing companies such as Bharat Petroleum Corporation, Indian Oil Corporation and Hindustan Petroleum Corporation gained on Tuesday after Credit Suisse maintained its "outperform" rating on fuel retailers
Shares of oil marketing companies such as Bharat Petroleum Corporation (BPCL), Indian Oil Corporation (IOC) and Hindustan Petroleum Corporation (HPCL) gained on Tuesday after Credit Suisse maintained its “outperform” rating on fuel retailers, citing refining margins to remain strong for oil retailers as demand-supply tightens.
BPCL, IOC and HPCL closed 0.97 per cent, 2.10 per cent and 2.53 per cent higher at Rs 810.60, Rs 392.95 and Rs 740.40, respectively.
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The brokerage house expects aggregate fiscal 2018 operating profit to be twice of fiscal 2015.
For the financial year ended March 2015, IOC reported a consolidated net profit of Rs 4,912 crore, down 30.68 per cent against Rs Rs 7,085.59 crore last year. HPCL and BPCL reported a consolidated net profit of Rs 1,498.58 crore and Rs 4,806.57 crore in FY15, respectively, against Rs 1,080.37 crore and Rs 3,910.68 crore in FY14, respectively.
BPCL is the top pick of Credit Suisse in the sector with price target of Rs 1,130. However, it cuts price target of HPCL to Rs 980 from Rs 1080 earlier.
(With inputs from Reuters)