Oil advertising and marketing providers (OMCs) have began cutting petrol and diesel costs as international crude oil prices softened. So far this month, petrol costs have been reduce twice whilst diesel prices have been slashed on 5 situations. Last month, petrol costs had been improved on nine occasions, whilst diesel prices had been hiked 5 instances. In June and May, fuel costs had been raised 16 instances every single month. In the previous month, the cumulative reduce in petrol and diesel costs stood at Rs .4 and Rs1. per litre, respectively, with crude costs hovering about USD70/bbl.
Domestic study and brokerage firm Emkay Global Financial Services has offered ‘buy’ rating to seven oil and gas stocks — BPCL, GAIL, Gulf Oil Lubricants, IGL, IOCL, ONGC, Petronet LNG and see up to 38 per cent rally from present levels. In a current sector update report, the study firm noted that demand for oil merchandise in the initial half of August 2021 has slightly recovered from the second Covid-19 wave period, even though petrol and diesel sales had been down 4.9 per cent and 15 per cent, respectively, (due to monsoon seasonality effect as nicely) and LPG was down 2.7 per cent, whilst ATF costs was up 25 per cent, sequentially.
Sabri Hazarika, analyst at Emkay Global Financial Services, in a report, highlighted that petrol, diesel, ATF, and LPG sales volumes rose 9.4 per cent, 18.5 per cent, 48 per cent, and 6.6 per cent, respectively, on-year. As compared to the exact same period in calender year 2019, petrol managed to sustain at pre-Covid levels (up 3.7 per cent), pushed up by individual mobility demand (in spite of all-time-higher costs), even though diesel, ATF and LPG demand continued to lag (down 7.9 per cent, 45 per cent, 2.5 per cent).
Oil & Gas stocks to get
BPCL: Emkay Global Financial Services see 16 per cent upside in the BPCL stock and pegged the target value at Rs 535 per share. The brokerage firm is overweight on thil oil & gas stock.
GAIL: It will take GAIL stock to rally 38 per cent from the present level of Rs 145 apiece, to hit the target value of Rs 200 per share set by the brokerage firm. Emkay Global is overweight on GAIL stock.
Gulf Oil Lubricants: Analysts at the brokerage firm see at leat 35 per cent rally in the Gulf Oil Lubricants stock value. It has pegged a target value of Rs 800, as against the present level of Rs 591 per share. The brokerage firm has ‘buy’ rating to the stock.
IGL: Indraprastha Gas Ltd could see a rise of 21 per cent from the present level of Rs 524.60 apiece. The brokerage firm has pagged a target value at Rs 635 per share, and is overweight on the stock.
IOCL: Indian Oil Corporation Ltd stock could rally 27 per cent to Rs 135 per share share, as recommended by the brokerage firm. Emkay Global Financial Services has offered ‘buy’ rating to the stock.
ONGC: Emkay Global Financial Services is overwight on the ONGC stock. The stock has a target value pegged at Rs 140, a 21 per cent rally from the present levels.
Petronet LNG: Domestic study and brokerage firm has a ‘buy’ rating to the stock. It will take Petronet LNG stock to jump as a lot as 18 per cent from the present levels to hit the target value of Rs 270 per share, seen by the study firm.
(The stock suggestions in this story are by the respective study analysts and brokerage firms. TheSpuzz Online does not bear any duty for their investment guidance. Capital markets investments are topic to guidelines and regulations. Please seek advice from your investment advisor ahead of investing.)