Finance News : 2 Stocks To Buy For Up To 33% Returns From Motilal Oswal

Motilal Oswal Institutional Equities is seeing BPCL’s current market value gain from Rs 464 to 33% and believes that the stock could rise from its current level to the target of Rs 615.

BPCL reported a bit on our estimates, driven by a better-than-expected performance in the marketing segment (volume was down 14% QoQ). The throughput modification at 1QFY22 was associated with demand moderation due to the second covid wave (throughput was below 18% QoQ).

“With the total period of closed lockdown and closure of the refinery complex (approximately 3 million barrels of oil per day over the next 2-3 years), the refining margin is at its long-term average ($ 5 &; 6 per barrel;”), the brokerage said.

According to Motilal Oswal, management has said that the increase in personal mobility due to Covid continues to increase the high demand for MS (thus contributing to cracks). Demand for HSD is seeing a strong recovery in the United States, with the Chinese and Indian economies reviving.

“A virtual data room has been opened since April 21, and the next two steps are to discuss with senior management and inspect the physical assets. We value BPCL at 2.2 times the book value of September. Motilal Oswal said in his report.

Brokerage is also strong and ONGC’s stock is seeing a 29% gain. ONGC reported in-line numbers and crude oil sales; Low gas sales were higher than estimated VAP sales. Gas removal from GAIL led to a shutdown at the customer end was low.

“Brent prices start at a high of USD75 / bbl on July 21 at $ 70; per bbl. We expect prices to return to normal USD60-65 / bbl as OPEC + gradually increases its oil production (by 0.4mnbopd per month in August). We have forecast a Brent price of Y 63 / ড 60 / BBL for FY22E / FY23E, considering the current 5.8 MNBOPD production decline, “said Dalali.

We have reached the target price of Rs 150 by adding the company’s price 10 times the September 23E integrated EPS of Rs 11.6 and investment value. Repeat buying in stock, ”the brokerage said.

Disclaimer

This article or section needs sources or references that appear in credible, third-party publications. Please consult a professional advisor. Greenwich Information Technologies Pvt. Ltd., its affiliates, collaborators and authors do not accept responsibility for the loss and/or damage caused by the information in the article.