Not ONGC Or Oil India, But This SmallCap Oil & Gas Stock Below Rs 200, Is Piping Hot To BUY; Who & Why?

One oil and gas exploration stock is piping hot pick of brokerage Prabhudas Lilladher. The stock price is trading under a smallcap basket and is below Rs 200. It is neither PSU giants like ONGC or Oil India, but instead a private company, Hindustan Oil Exploration Company.

Hindustan Oil Exploration has neither carried a bonus issue nor a stock split, but holds a decent record of paying dividends unlike ONGC and Oil India which have a strong foothold in dividend rewards and bonus shares. The stock price has recorded erosion in over past 5 months, especially after hitting its peak level of Rs 293.60 apiece.

Hindustan Oil Exploration Share Price:

On BSE, the stock price stood at Rs 185.70 per share after market hours of January 9, with a market cap of Rs 2,455.76 crore. The stock's 52-week high and low is at Rs 293.60 apiece and Rs 156.85 apiece respectively.

YTD, the stock is marginally up. In a year, the stock has registered an 8% upside. Its all-time gain is about 1,017%.

Hindustan Oil Exploration Company BUY Recommendation:

As per Vaishali Parekh, Vice President - Technical Research at PL Capital Group - Prabhudas Lilladher, Hindustan Oil Exploration share has witnessed a decent erosion since the last 5 months from the peak zone of 292 to take support near the 175 to form a double bottom formation on the daily chart and indicated a pullback to improve the bias.

Parekh's note added, "A decisive move past the significant. The RSI is well placed at the current rate and with much upside potential visible from the current rate, the chart is technically looking very attractive and we suggest buying the stock for an upside positional target of 220, keeping the stop loss at 175 level."

About Hindustan Oil Exploration Company:

HOEC was incorporated in 1983 under the visionary leadership of Late Shri. H.T. Parekh who foresaw the need for private participation in the Indian Oil & Gas sector. As one of the pioneer private players in the Indian E&P sector, HOEC holds a portfolio consisting of 9 Oil & Gas blocks of Discovered Resources and 1 Exploratory block, with a diverse geographical footprint in 4 out of 7 producing basins in India.