3 Gas Stocks To Buy As Suggested By Sharekhan, Gain Upto Aggressive 57% Return

Gas stocks are being advised to invest by some analysts are the share prices are marginally down now. Here, three such stocks have been discussed, as recommended by brokerage firm Sharekhan.

Gas Stocks To buy: Sharekhan

Sharekhan suggests buying the stocks of Gujarat State Petronet Ltd. (GSPL), Gujarat Gas, and Indraprastha Gas Limited (IGL).

Company	Current market price	Target Price	Return
GSPL	Rs. 226	Rs. 328	45.13%
Gujarat Gas	Rs. 433	Rs. 680	57.04%
IGL	Rs. 361	Rs. 450	24.65%

Stock Potential: Sharekhan

Commenting about the stocks' potential, the brokerage firm mentioned, "We expect earnings of IGL/MGL to improve sequentially, as price hike and moderation in spot LNG price to $27/mmBtu in Q1FY23 (versus $30.4/mmBtu in Q4FY22) bodes well for margin improvement. IGL/MGL would also witness a q-o-q increase in volume led by better CNG/domestic PNG demand. However, we expect Gujarat Gas to report earnings decline on both y-o-y/q-o-q given pressure on the industrial PNG volume and margin moderation on account of pass-through of a fall in spot LNG price to customers. GSPL is expected to report slight improvement in earnings with marginal uptick in volume."

Disclaimer

The above stock was picked from the brokerage report of Sharekhan. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution. Greynium Information Technologies, the author, and the brokerage house are not liable for any losses caused as a result of decisions based on the article.