The price of crude oil has come down to $ 75, which is the lowest level of 15 months. Avendus Capital has advised buying in BPCL, Indian Oil and Hindustan Petroleum. There will be a return of up to 30 percent from the current level.
India imports 85 per cent of its crude oil needs. Due to what is going on in the global financial market at this time, the price of crude oil has come down to $ 75. It is at a 15-month low.
Cheap crude oil is not only good news for the Indian economy, but oil marketing companies will also benefit greatly from it. It is possible that petrol and diesel will also become cheaper in the coming days. After the fall in crude prices, Avendus Capital has upgraded the rating of three state-owned oil marketing companies - BPCL, Indian Oil and HPCL from rating ADD to BUY.
Buy advice in BPCL, Indian Oil and HPCL:
Avendus Capital said in its report that companies like BPCL, Indian Oil and HPCL will benefit greatly from this. Based on the sequence, the company has selected Bharat Petroleum, then Indian Oil and finally Hindustan Petroleum for investment. Let's understand the entire report in detail, including the brokerage target for the three companies.
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Brokerage net has set a target of Rs 440 for BPCL. At 3 pm, bharat petroleum shares are trading at a level of Rs 6 with a gain of more than 350 percent. It had closed at Rs 330 on Wednesday. The target price is 33 percent of this.
Target for Indian Oil:
The second choice is Indian Oil. A target of Rs 105 has been given for Indian Oil. Indian Oil shares are at rs 80 with a gain of one and a half percent. It had closed at Rs 78 on Wednesday. The target price is about 34 percent higher than this level.
Target for HPCL:
The target for HPCL has been given at Rs 270. At present, Hindustan Petroleum's stock is at the level of Rs 6 with a strength of about 245 percent. On Wednesday, it had closed at Rs 230. The target price is 18 percent higher than this level.
Crude Oil price outlook:
The brokerage said in its report that China's economy is opening up, but on the other hand, the risk of banking crisis on the global economy is increasing. The recession is intensifying. Due to this, crude oil will be between $ 75-85 per barrel in the coming time. This will benefit oil marketing companies. Their working capital will be strengthened. In the long term, gross refinery margins will improve and inventory losses will also be reduced.
Disclaimer: Here is the advice given by the brokerage house to invest in stocks. These are not our ideas. Consult your advisor before investing.