Stock To Buy: This Mid Cap Refining Entity Trading 2% Away From Its 52-Week Low

The momentum in the stock markets have gathered and we will be seeing positive momentum for the third straight month. Likewise, as the May month has been the worst for Indian equities so far, several of the stocks have hit 52-week lows or are trading close to it. Likewise, here is a stock from the refining space i.e. close to its 52-week low and can be a good bet considering its valuations and dividend.

Decently valued:

The stock we are talking about is HPCL. The company is a holding company. The Company is engaged in the business of refining of crude oil and marketing of petroleum products. Currently with the TTM PE of 4.4, the stock looks decently valued.

Attractive on dividends:

The company in the board meet recommended a final dividend pay out of Rs. 14 per share and the said dividend will be paid within 30 days from the date of approval by the Shareholders in the ensuing Annual General Meeting scheduled to be held in the month of August 1September 2022. Considering the current price of Rs. 229, this translates to a good dividend yield of over 6%.

OMCs will benefit by normalising their integrated margins via proper pricing views Emkay

Emkay has maintained that while the recent duty-cuts are right steps. OMCs will need to normalise their integrated margins on auto-fuels through proper pricing. Further, Emkay has maintained 'Buy' call on the stock for a price target of Rs. 295 i.e. a significant upside from current levels. Notably also these OMCs tend to benefit from low oil price owing to the reduction in refinering fuel loss as well as potentially higher auto fuel marketing margins.