HPCL, BPCL, IOCL share prices rise 28-38% year-to-date: Should you Buy, Sell or Hold the stocks?

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Hindustan Petroleum Corporation Ltd (HPCL), Bharat Petroleum Corporation Ltd (BPCL), Indian Oil Corporation Ltd (IOCL) share price have given 28-38% year to date returns to the investors . This is despite challenges on rising crude prices, volatility in gross refining margins, and concerns on marketing margins that erupted ahead of Lok Sabha Elections'2024.

Notably while Hindustan Petroleum Corporation Ltd (HPCL), Bharat Petroleum Corporation Ltd (BPCL), Indian Oil Corporation Ltd (IOCL)share price while corrected in March, however have rebounded 9-20% from March Lows.Also Read-Defence stocks tumble amid profit booking; Bharat Dynamics down 6%, HAL falls 5%Most of the concerns nevertheless are behind. The Brent crude oil prices that had risen past $90 a barrel in April have corrected to around $81 a barrel levels now.

Hence the concerns on marketing margins being impacted by higher crude prices are behind. The oil marketing companies as Hindustan Petroleum Corporation Ltd (HPCL), Bharat Petroleum Corporation Ltd (BPCL), Indian Oil Corporation Ltd (IOCL) however have not seen any change in retail price and hence any losses they incurred while crude prices were rising will now be recovered.Analysts at Motilal Oswal Financial Services who expect oil prices to remain range bound now, say that “We see OMCs as the best way to play a range-bound crude oil price environment with rising downside risks".Also Read- GSFC share price rises 7%: Prabhudas Lilladher expects more than 20% upsideThe OMCs as Hindustan Petroleum Corporation Ltd (HPCL), Bharat Petroleum Corporation Ltd (BPCL), Indian Oil Corporation Ltd (IOCL) have continued to strengthen their balance sheets and MOFSL analysts estimate a consolidated net debt to equity