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Investing.com - Citi has reiterated its Buy rating on Hindustan Petroleum (NSE:HPCL) (HCPL:IN) stock with a price target of INR510.00, while opening a new 90-day Positive Catalyst Watch on the company.
The previous Positive Catalyst Watch, which was opened on April 8, has expired after the stock gained approximately 21% over the last three months, according to Citi.
Citi believes Hindustan Petroleum will report robust first-quarter fiscal year 2026 EBITDA of Rs77 billion, representing a 46% quarter-over-quarter increase, which would translate to earnings per share of Rs22, approximately 40% of the firm’s full-year estimate.
The research firm cited several factors supporting its outlook, including upside to marketing margin assumptions due to low crude prices combined with stable retail fuel prices, and reduced likelihood of an imminent fuel price cut, to which Hindustan Petroleum is most leveraged among oil marketing companies.
Citi notes the stock offers approximately 5% dividend yield in its base case with potential for upside, while also mentioning the possibility of a mechanism to compensate oil marketing companies for LPG losses.
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