Hold HPCl and BPCL: Reliance Money

Reliance Money has recommended a hold rating on Hindustan Petroleum Corporation (HPCL) with a target of Rs 250 and Bharat Petroleum Corporation (BPCL) with a target of Rs 355. The research firm values HPCL at 0.8x FY08 BV and BPCL at 1.1x FY08 book value.
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Dec 11, 2008, 03.53 PM | Source: Moneycontrol.com

Hold HPCl and BPCL: Reliance Money

Reliance Money has recommended a hold rating on Hindustan Petroleum Corporation (HPCL) with a target of Rs 250 and Bharat Petroleum Corporation (BPCL) with a target of Rs 355. The research firm values HPCL at 0.8x FY08 BV and BPCL at 1.1x FY08 book value.

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Hold HPCl and BPCL: Reliance Money

Reliance Money has recommended a hold rating on Hindustan Petroleum Corporation (HPCL) with a target of Rs 250 and Bharat Petroleum Corporation (BPCL) with a target of Rs 355. The research firm values HPCL at 0.8x FY08 BV and BPCL at 1.1x FY08 book value.

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Reliance Money has recommended a hold rating on Hindustan Petroleum Corporation (HPCL) with a target of Rs 250 and Bharat Petroleum Corporation (BPCL) with a target of Rs 355 in its December 11, 2008 research report. "We believe that if oil prices stabilize at lower levels and government comes with a transparent formula for determining domestic prices, OMCs will be trading at higher P/B. We value HPCL at 0.8x FY08 BV and BPCL at 1.1x FY08 book value, giving us a target price of Rs 250 on HPCL and Rs 355 for BPCL."

" Indian Oil Corporation (IOC) and BPCL have historically traded at a premium to HPCL mainly on account of higher refining capacity and less dependence on external sources for meeting sales requirement. It is for this reason that HPCL has higher sensitivity to rise or fall in oil prices. We recommend HOLD on HPCL and BPCL, and should there be any positive response either from government or crude oil prices, we do not rule out major re rating of the stocks," says Reliance Money's research report.

Disclaimer: The views and investment tips expressed by investment experts on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.

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