Stocks To Buy: Nomura's top OMC pick has the potential to rise another 33%

Brokerage firm Nomura has called Indian Oil Corporation Ltd. (IOC) has its top pick within the Oil Marketing Companies' basket in its latest note on Wednesday, May 20.

Nomura has maintained its "buy" rating on Indian Oil Corporation after its results with a price target of ₹180. Nomura's price target implies an upside potential of 33% from current levels.

The brokerage wrote in its note that IOC is likely to benefit from capacity addition amidst a refining upcycle and in these times of volatile oil prices, the state-run oil refiner is better placed compared to peers.

IOC's beat on the EBITDA front during the March quarter is likely due to inventory gains, as per Nomura, who added that refining capacity addition for the company could not have been timed better.

IOC On The Road Ahead

During its earnings call, Indian Oil's management said that the ongoing West Asia crisis has created significant uncertainty in the hydrocarbon supply chain, adding that it has diversified its crude oil and gas sourcing from across the globe.

The management also assured analysts and investors that despite this challenging environment, it will continue an uninterrupted supply of fuel.

Buy Or Sell IOC

34 analysts have coverage on Indian Oil Corporation, of which 20 have a "buy" rating, and seven each have a "hold" and "sell" recommendation.

Shares of Indian Oil Corporation ended 2.5% higher on Tuesday at ₹135.08. The stock is still down nearly 20% so far in 2026.