Big money to be made in HPCL; target price close to Rs 700: IIFL

News reports suggest that Oil and Natural Gas Corporation (ONGC) likely pay a big premium for Hindustan Petroleum Corporation (HPCL).

In an interview to CNBC-TV18, Harshvardhan Dole, VP-Institutional Equities at IIFL shared his views and readings on the same.

"The article does talk about ONGC willing to pay a premium to HPCL to acquire government stake. And this has come after various statements in the press, in media that the deal is likely to be concluded at the CMP. So definitely some premium will be offered by either ONGC or essentially when the deal is concluded," he said.

He further said that we have been stating in our research that HPCL's stock is more than what the current market price (CMP) is and our official target price is close to Rs 700, which is based on FY19 and we think there is big money to be made here.