These stocks including ONGC, OIL India, GAIL will shine in crude oil! Expect a return of up to 45%, check the target

Oil and gas reserves: Due to the Russia-Ukraine war, there is a lot of instability in commodity and stock markets around the world. In particular, there was a strong jump in the price of crude oil and the price reached the level of $ 139. However, at the moment the price is below $ 110. Brokerage house MK Research says the benefits of Brent’s price hike will be felt by Indian upstream companies and oil marketing companies. Their shares will also have a positive impact. Due to rising energy prices, stock valuations of companies like ONGC, Oil India, GAIL, IOCL, HPCL, BPCL have become interesting. Brokerage has suggested investing in these stocks. In addition, the target price has been revised. The research firm has raised its Brent price forecast for FY23 / 24 from $ 80/75 to 100/80 per barrel.

What the report says

MK Research has raised its Brent price forecast for FY23 / 24 to $ 100/80 per barrel. However, in the long run, the estimate of 75 75 per barrel has been maintained. The average price of FY22 was about $ 80 per barrel. There has been a lot of volatility in gas prices in the world market. At FY23 / 24E, gas prices could rise to AB 6 per MABtu and $ 5 in the long run.

Speaking of oil marketing companies, the marketing margin of petrol and diesel is negative at Rs 6.5 / 9.1 per liter. If we look at the daily moving average of $ 130 per barrel of Brent, from the current price, the price of oil will increase by Rs 28-30 per liter. Brokerage believes that mixed measures of reduction in excise, reduction of VAT and increase in retail prices can be seen.

Oil marketing companies are already operating at very low EBITDA margins. At the same time the price of LPG also needs to be increased. Brokerage oil and gas companies ONGC, Oil India, Gayle, IOCL, HPCL, BPCL have revised the target price by buying stocks.

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Keep an eye on this stock

ONGC: Buy

Target: Rs.230 / share
Upward (approximate): 34%

Oil India: Buy

Target: Rs. 335 / share
Upward (approximate): 45%

Gayle: Buy

Target: Rs. 210 / share
Upward (approximate): 39%

Indian Oil: Buy

Target: Rs. 155 / share
Upward (approximate): 29%

BPCL: Buy

Target: Rs. 460 / share
Upward (approximate): 28%

HPCL: Buy

Target: Rs. 330 / share
Upward (approximate): 18%

(Note: Expected uptrend of the stock based on the share price on March 14, 2022.)

(Disclaimer: The investment advice here is provided by the brokerage house. This is not a G-Business opinion. Please consult your advisor before investing.)