4 Oil And Gas Stocks To Buy That Can Offer 28% To 60% Returns

Emkay Global has come-up with its latest report on the oil and gas sector. The brokerage sees a good upside potential in some of these stocks. Here are 4 oil and gas stocks that have the potential to rally from the current levels.

Gulf Oil Lubricants

Emkay Global sees an upside potential of almost 55% in the stock of Gulf Oil and has recommended a buy on the stock with a price target of Rs 720. The brokerage sees 3% qoq increase in volumes and a 5% fall in EBITDA/ltr qoq. Gulf Oil Lubricants is a leading player in the lubricants business, with a strong presence in both industrial and automotive lubricants.

Petronet LNG

Broking firm, Emkay Global sees an upside potential of nearly 35% on the stock of Petronet LNG from the current levels of Rs 200. The firm has set a target price of Rs 270 on the stock, as against the current market price of Rs 200.

The company sees 84%/16% Dahej/Kochi utilization. It also believes that USD5.0/mmbtu spot LNG marketing margin would apply.

The Company had set up South East Asia's first LNG Receiving and Regasification Terminal with an original nameplate capacity of 5 MMTPA at Dahej, Gujarat. The infrastructure was developed in the shortest possible time and at a benchmark cost.

Indraprastha Gas

Emkay Global also has a buy call on the stock of Indraprastha Gas and sees an upside potential of nearly 69% from the current levels. "Volumes to grow 22% yoy/5% qoq to 7.63mmscmd; 15.5% qoq increase in EBITDA/scm to Rs7.7 on aggressive pricing," the brokerage has said.

The company is a top player in the piped and cng business in and around Delhi. The shares of Indraprastha Gas were last seen trading at Rs 386 on the National Stock Exchange.

Gujarat Gas

Gujarat Gas is a city gas distributor like Indraprastha Gas. The company has a significant presence in the piped gas business as well in the CNG business in Gujarat. Emkay Global sees an upside potential of 28% on the stock from current levels. The broking firm believes that volumes at the company are likely to decline 19% yoy/14% qoq to 9.79mmscmd; 132% qoq increase in EBITDA/scm to Rs5.3 likely on aggressive pricing.

Disclaimer

The stock has been picked from the brokerage report of Anand Rathi. 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.