Oil and gas stocks had been in concentrate on Friday following Prime Minister Narendra Modi stated that the government is committed to bring all-natural gas Goods and Services Tax (GST). This will assist to make the costs uniform and less expensive in the nation. The government has also planned to invest more than Rs 7.5 lakh crore in the country’s oil and gas infrastructure in the next 5 years. When GST was implemented in 2017, only 5 petro-merchandise — petrol, diesel, crude oil, all-natural gas, and aviation turbine fuel (ATF) — had been kept out of its purview. Analysts at Emkay Global Financial Services noted that clarity relating to the GST price, estimation of input tax credit (ITC) amongst gas players and B2B clients and regardless of whether the exact same will be retained or passed are amongst the important elements to take into consideration.
BSE oil and gas index has hit a new 52-week higher for the second in a row, increasing one per cent to 15,752.67 levels. The top rated gainers in the index had been Petronet LNG, Reliance Industries Ltd (RIL), GAIL (India) Ltd and Castrol India. Emkay Global Financial Services has offered ‘buy’ to ONGC, GAIL and Gujarat Gas. It has a ‘hold’ rating to Oil India Ltd and Indraprastha Gas.
ONGC: The brokerage firm sees more than 17 per cent upside in ONGC share value from the earlier close to Rs 130 apiece. The firm’s FY22E EPS stands at 13.9 and value to earnings (P/E) ratio at 7.9x. ONGC was trading more than half a per cent reduced on Friday following it hit a fresh 52-week higher of 113.45 apiece. So far in intraday offers, 9.18 lakh shares have traded on BSE.
GAIL (India) Ltd: GAIL (India) Ltd surged to a fresh 52-week higher for the straight day, to Rs 149.45 apiece. The brokerage firm has pegged a target value of Rs 160, implying an upside of 12 per cent from earlier close. Emkay Global Financial Services stated that for GAIL, petchem and LPG segments exactly where VAT is charged on feed gas, would now see recovery.
Gujarat Gas Ltd: This gas stock has a target value of Rs 475 apiece. Gujarat Gas share value rose to make a new 52-week higher of Rs 526.90 apiece on Thursday. Though share value is down almost 5 per cent from 52-week higher, Gujarat Gas shares are trading in the green on Friday. On BSE, a total of 1.15 lakh shares have traded so far, even though on National Stock Exchange 7.02 lakh shares have exchanged hands.
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