[ad_1]
Oil and gas stocks inched higher on Friday’s early trades as the Government of India (GoI) was mulling over a further reduction of the windfall tax on exports of locally produced oil and diesel.
Some of the gainers include Oil & Natural Gas Corporation Ltd (up 0.86%), Gujarat Gas (NS:) Ltd (up 2.67%), Indian Oil (NS:) Corporation Ltd (up 0.79%), and Bharat Petroleum (NS:) Corporation Ltd (up 0.32%).
On the other hand, Hindustan Petroleum Corporation Ltd (NS:) (down 0.19%), GAIL (NS:) (India) Ltd (down 0.43%), Adani Total Gas (NS:) Ltd (down 1.20%) and Reliance Industries Ltd (NS:) (down 0.76%) moved lower.
On December 01, 2022, the Government of India reduced the windfall tax on export from ₹10,200 per tonne to ₹4,900 per tonne. In addition, it reduced the duty on diesel export from ₹10.50 per litre to ₹8 per litre. These changes have become effective from December 02, 2022.
Here are a few stocks in which brokerages see an upside:
Reliance Industries Ltd
The shares of Reliance Industries jumped by more than 7% in the past month. They were trading at ₹ 2723.70 (up 0.015%) at 01:03 PM on Friday. Jefferies has raised the target price of Reliance industries to ₹ 3,100.00. This translates to an upside of 13.825% as compared to its current share price. The brokerage said that the removal of the export duty could boost Reliance Industries’ FY24 EBITDA by $1 billion.
Bharat Petroleum Corporation Ltd (BPCL)
BPCL’s shares were trading at ₹ 340.80 apiece at 01:08 PM on Friday. Brokerage firm Sharekhan is bullish on the stock and has recommended a buy rating with a target price of ₹ 375.00. This implies an upside of 10.04% as compared to the current share price. It said that the gradual petrol/diesel price hikes or decline in crude oil prices coupled with the likely normalisation of refining margins would drive earnings recovery in H2FY23-FY24.
Oil & Natural Gas Corporation Limited (ONGC (NS:))
ONGC’s shares were trading at ₹ 141.35 apiece at 01:17 PM on Friday. JM Financial (NS:) has a buy call on the shares with a target price of ₹ 205.00. This translates to an upside of 45.03% as compared to the current share price. ONGC is the largest crude oil and Company in India. It contributes around 71 per cent to Indian domestic production.
Written by Simran Bafna
The post Oil and gas stocks inch higher; Brokerages see up to 45% upside appeared first on Trade Brains.
Read More
[ad_2]
Source link
