JPMorgan and Kotak upgrade HPCL, BPCL and IOC to ‘Reduce’, set targets at ₹400, ₹320 and ₹150

JPMorgan and Kotak Institutional Equities upgraded HPCL, BPCL and IOC to ‘Reduce’ from ‘Sell’, setting target prices of ₹400, ₹320 and ₹150, respectively. They pointed to a more than 30% correction in crude oil from recent highs, which they said has lifted integrated refining-and-marketing margins to above prewar levels. Kotak said it does not expect OMCs to report losses in FY27 and sees strong earnings in FY28 and FY29 if crude averages around $75 per barrel. Both brokerages described the stocks as near-term tactical plays whose performance remains closely tied to further easing in oil prices.