Prabhudas Lilladher Picks 10 Stocks To Buy From Oil & Gas Sector, Sees Up To 41% Gain

Prabhudas Lilladher has come up with a positive outlook on the Oil & Gas sector. The brokerage picks 10 Stocks from the Oil & Gas Sector to buy for high gains. Among these 10 stocks 6 are PSU stocks.

These 10 stocks are Bharat Petroleum Corporation Limited (BPCL), GAIL (India) Ltd., Hindustan Petroleum Corporation Limited (HPCL), Indraprastha Gas Ltd., Indian Oil Corporation Limited (IOCL), Mahanagar Gas Limited, Oil India Limited, Oil & Natural Gas Corporation Limited (ONGC), Petronet LNG Limited, Reliance Industries Limited. Among these BPCL, GAIL (India), HPCL, IOCL, and ONGC are PSU stocks.

Operationally strong results likely

According to Prabhudas Lilladher, Indian Oil sector's operating profit is expected to increase by 17.7% QoQ to Rs832bn given OMC's robust performance (EBIDTA at ~Rs383bn) led by improving marketing margins (blended margin of Rs9/ltr vs Rs3 in Q4) despite lower refining spreads. Upstream companies like ONGC and OIL India are expected to maintain production volumes and net crude realization of ~US$76-77bbl, but gas realization will be lower at USD6.5/mmbtu (Q4: $8.6). IGL/MGL will see QoQ earnings growth from lower input prices, while GGAS may suffer due to competition from propane despite softening input prices. "We expect RIL's O2C segment to report muted result due to lower refining, partly compensated by higher petchem margins. We build in steady telecom performance (+2.9%QoQ revenue growth) as we build in 1.5%QoQ ARPU growth while retail revenue growth will be steady. HPCL, BPCL remain are our preferred result pick," the brokerage has said.

Stock Coverage

Rating, *CMP, Target Price, Upside Potential

Companies	Rating	CMP (Rs)	TP (Rs)	Upside Potential
BPCL	Buy	391.75	425	8.49%
GAIL (India)	Buy	110.5	118	6.79%
HPCL	Buy	305.8	340	11.18%
Indraprastha Gas	Buy	495.1	582	17.55%
Indian Oil Corporation	Buy	99.25	125	25.94%
Mahanagar Gas	Buy	1111.75	1260	13.33%
Oil India	Buy	253.05	325	28.43%
ONGC	Buy	163.5	210	28.44%
Petronet LNG	Buy	229.8	322	40.12%
Reliance Industries	Buy	2635.45	2822	7.08%

Note - *CMP as on Friday, Jul 07, 2023

Disclaimer - The stocks have been picked from the brokerage report of Prabhudas Lilladher. Greynium Information Technologies, the Author, and the respective Brokerage house are not liable for any losses caused as a result of decisions based on the article. Goodreturns.in advises users to consult with certified experts before making any investment decision.