HPCL, BPCL, IOC closes at lifetime high

Shares of oil marketing companies (OMCs) are on a roll with all three listed firms – Hindustan Petroleum Corporation (HPCL), Bharat Petroleum Corporation (BPCL) and Indian Oil Corporation (IOC) – closing at their respective lifetime highs on the Bombay Stock Exchange (BSE) on Tuesday. These stocks closed higher between 3%-5%, as compared to 0.15% rise in the S&P BSE Sensex today.

In past two-months, all these three stocks outperformed the market by surging between 20%-33% as compared to 9.4% gain in the benchmark index.

OMCs’ economic moat is widening, led by scope for meaningful increase in marketing margins and profitability, slower ramp-up by private marketers, high volume growth, aided by expected GDP boost, and improving balance sheet with increasing cash flow, according to analysts at Motilal Oswal Securities.

Analysts at Antique Stock Broking expect OMCs to report sequentially flat earnings, with exception of IOCL, where earnings are likely to stand better on lower base of 4QFY16. The weaker refining margins would likely get offset by plausible inventory gains and healthy fuel consumption growth during the quarter.

Meanwhile, besides these three stocks total 20 scrips include – PVR, UltraTech Cement, Somany Ceramics, Manpasand Beverages, Bajaj Auto, Dalmia Bharat and Bajaj Finserv – from the BSE500 & Nifty 500 have hit record highs during intra-day trade today.

Hindustan Petroleum Corporation Ltd.(HPCL)

Bharat Petroleum

Indian Oil Corporation