CLSA Bullish On Oil & Gas Stocks; Here Are Its Picks

Foreign brokerage CLSA is bullish on certain stocks from the oil & gas sector and has also raised its target price on them. It prefers Mahanagar Gas, GAIL India, Gujarat Gas and Hindustan Petroleum Corporation Limited (HPCL) from the sector.

It further said that large gains in crude and refining margins are likely to be limited by continued worries on the pace of demand recovery. Also, CLSA prefers oil and gas marketers over producers because the liquefied natural gas price may cool off after the winter spike.

The brokerage has raised its target price on BPCL to Rs 440 from Rs 360. Shares of the oil marketer closed 2.88% higher at Rs 414.40 on Friday.

Further, it raised the target on HPCL to Rs 270 from Rs 225. The company's shares were last seen trading at Rs 230.20 on NSE.

CLSA raised its price target on GAIL (India) to Rs 170 from Rs 125. Shares of the company were down 3.3% at the close on Friday at Rs 139.20, despite the announcement of buyback and dividend approval.

The brokerage has also upgraded Oil India to outperform from sell and raised target price to Rs 120 from Rs 60. However, it has downgraded shares of Indraprastha Gas to outperform from buy while increasing target price to Rs 615 from Rs 525.