Jefferies prefers this OMC stock on strong earnings visibility, favourable valuations
Published on 26/08/2025 03:23 PM
Jefferies prefers this OMC stock on strong earnings visibility, favourable valuationsGiven few factors, brokerage firm Jefferies expressed a preference for BPCL over HPCL, maintaining a 'Buy' rating on the stock with a price target of ₹410.By Meghna Sen August 26, 2025, 3:23:19 PM IST (Updated)1 Min ReadShares of Bharat Petroleum Corporation Ltd. (BPCL) have corrected nearly 10% over the past year, even as the company's earnings outlook remains firm, according to global brokerage firm Jefferies.
Jefferies said that BPCL is currently trading at the same forward price-to-book (P/B) multiple as Hindustan Petroleum Corporation Ltd. (HPCL). However, investor concerns around BPCL entering a phase of elevated capital expenditure have weighed on its valuation.
The brokerage pointed out that HPCL faces relatively higher risks to its earnings, particularly from large new projects that typically take three to five years to stabilise after commissioning.
In addition, HPCL's profitability could be more vulnerable in the event of any potential excise duty hikes by the government.
Given these factors, Jefferies expressed a preference for BPCL over HPCL, maintaining a 'Buy' rating on the stock with a price target of ₹410.
The brokerage cited BPCL's stronger earnings visibility and more favourable valuation as key reasons for its bullish stance.
The BPCL stock is now trading 0.55% lower on Tuesday at ₹314.05. The stock is up nearly 30% so far this year.Continue ReadingNote To ReadersDisclaimer: The views and investment tips expressed by investment experts on CNBCTV18.com are their own and not that of the website or its management. CNBCTV18.com advises users to check with certified experts before taking any investment decisions.First Published: Aug 26, 2025 2:53 PM ISTCheck out our in-depth Market Coverage, Business News & get real-time Stock Market Updates on CNBC-TV18. Also, Watch our channels CNBC-TV18, CNBC Awaaz and CNBC Bajar Live on-the-go!TagsBharat Petroleum (BPCL)Bharat Petroleum Corp (BPCL)HPCL shareshare market today