HPCL upgraded by Citigroup on oil slump, reforms

Reuters Market Eye - Citigroup upgrades Hindustan Petroleum Corp to "buy" from "neutral". Raises price target to 710 rupees from 513 rupees.

The investment bank also raises target prices of Bharat Petroleum Corp to 887 rupees from 726 rupees.

Cites sharp decline in crude oil prices and diesel deregulation as key reason for the upgrade.

LPG subsidies too should structurally decline.

Says consensus will shun the price-to-book based methodology to value these companies to earnings-based approach.

(Reporting by Abhishek Vishnoi)