Indian markets after a few days of gains are trading flat in the afternoon trade and here are 2 oil exploration company stocks recommended. Notably these companies stand to benefit on account of higher crude price and any sustained gains can bring in more upside for them.
Emkay Global has recommended a buy call on Oil India Ltd. with a target price of Rs 335.The time period defined to reach such targeted price is one year and from the current price level it is an upside of 42%.
The company is a mid cap company incorporate in 1959 that operates in gas and petroleum sector. The company's products include Oil Crude, Gas Natural, Other Operating Revenue, Income From Transportation Services, Renewable Energy System, Condensate and Income from OFC Fibre Leasing for the year ending 31-Mar-2019.
ICICI Direct is bullish on GAIL for a target price of Rs. 180 to be realised in 1 year. The company is a gas utility company with various business segmentssuch as gas transmission & trading, LPG, LLH and petrochemicals. It operates a natural gas pipeline network of 13700 km as of end of FY21. Gail also has a presence in CGD sector directly and via associate companies.
Rationale for a buy with a target price of Rs. 180
The brokerage believes that gas transmission volume is expected to report steady growth, going ahead. Gas trading is expected to report healthy gains in the near term due to favourable spot LNG price trend. LPG & petchem to report healthy profitability on account of higher realisation.
The above stocks are taken from brokerage reports and in the currently very volatile times you need to highly cautious with your stock market investments.