Jefferies raises HPCL target price on diesel deregulation, price cut

Hindustan Petroleum Corporation (HPCL) is likely to benefit most from diesel deregulation, says Jefferies.

The US-based global investment bank has raised its target price on HPCL to Rs 640 from Rs 570.

The government on Saturday deregulated the price of diesel, leading to a cut in its price by Rs 3.37 a litre, and raised the price of natural gas.

Jefferies says HPCL's earnings from diesel deregulation may double in the current fiscal over FY14.

(Reuters)