By Aditya Raghunath
Investing.com -- Oil companies have been on an uptrend for the last month and a half. Oil major Hindustan Petroleum (NS: HPCL ) has gone up by over 23% since November 2 when it was trading at Rs 185.65. It is currently trading around Rs 227.
Brokerages are very bullish on HPCL prospects and 10 analysts who have recommended a buy now have an average price target of Rs 291 on the stock, up 30% from Rs 225 that they had earlier. this year
BOB Capital Markets is the most positive on HPCL with a price target of Rs 440 while Nirmal Bang has a target of Rs 343. Prabhudas Liladhar has a target of Rs 280.
There has been weak demand for oil since the virus outbreak in March. But as the country enters another phase of unlocking, oil demand is picking up. HPCL derives a significant portion of its earnings from fuel marketing. As prospects for fuel marketing have improved significantly, HPCL shares have moved up stronger than its peers like Indian Oil (NS: IOC ) Corporation and Bharat Petroleum (NS: BPCL ).
Earnings for the company will also go up in the near future. Macquarie India has said that HPCL earnings will double by FY23 as it increases production capacity.
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