3 PSU Oil & Gas Stocks Recommended To BUY For 20-27% Potential Upside: Sees Major Change In Nity Rejig

With Nifty indices rejig effective from March 28, there are three largest oil marketing companies (OMCs) that have seen significant change. These are HPCL, BPCL, and Indian Oil. The three Maharatna PSUs witnessed a surge on Thursday and traded near its 52-week high levels. These three OMC stocks are further recommended to buy for fetching 20% to 27% returns in the near term.

Indian Oil:

On NSE, after market hours of March 28th, Indian Oil's share price stood at Rs 168 apiece. The stock was very near to its 52-week high of Rs 196.80 apiece. From its 52-week low of Rs 75.75, Indian Oil is currently up by 122%.

With effect from March 28, Indian Oil has been excluded from the Nifty Low Volatile 50 and Nifty 100 Low Volatile 30 but has been included in the Nifty 200 Alpha 30 index as part of the Nifty indices rejig.

As of the latest, Nomura has upgraded its BUY rating on Indian Oil for a target price of Rs 195 per share. The outlook is positive. However, the highest target price is set by Antique Stock Broking at a staggering Rs 202 per share. From the highest target price, Indian Oil has a potential of over 20% upside in the near term.

IndianOil is India's flagship Maharatna national oil company with business interests straddling the entire hydrocarbon value chain - from refining, pipeline transportation & marketing to exploration & production of crude oil & gas, petrochemicals, gas marketing, alternative energy sources and globalisation of downstream operations.

Bharat Petroleum Corporation Limited (BPCL):

BPCL's share price ended at Rs 604 apiece on NSE, up by 1.5% on March 28th. This OMC stock is also nearing its 52-week high of Rs 687.95 while trading higher by 85% from its 52-week low of Rs 327 apiece.

As per the latest rejig on Nifty indices, BPCL is included in Nifty 100 Alpha 30.

For this stock, Nomura has maintained a Buy on BPCL for the highest target price at Rs 735 per share with a Neutral outlook. Meanwhile, Antique Stock Broking has set a buy rating with a target price of Rs 686 per share. From the highest target, BPCL shares have a potential 22% upside in the near term.

Fortune Global 500 Company, BPCL is the second largest Indian Oil Marketing Company and one of the integrated energy companies in India, engaged in refining of crude oil and marketing petroleum products, with a presence in the upstream and downstream sectors of the oil and gas industry. The company attained the Maharatna status, joining the club of companies having greater operational & financial autonomy.

Hindustan Petroleum Corporation Limited (HPCL):

Yet another OMC, HPCL share price ended its FY24 fiscal at Rs 478.75 apiece on NSE after market hours of March 28. The stock is over 100 rupees away from hitting its 52-week high level of Rs 594.80, while it is trading higher by 117.51% from its 52-week low of Rs 220.10 apiece.

HPCL is included in the Nifty200 Alpha 30 index with effect from March 28.

Brokerage Nomura has upgraded HPCL shares to BUY for a target price of Rs 570 per share with a positive outlook. The highest target price is however set by Antique Stock Broking to Rs 608 per share of the company. From the highest target price, HPCL shares have the potential of a whopping 27% upside ahead.

Also, holding Maharatna status, HPCL is one of the largest integrated Public Sector Undertaking, engaged in the business of refining Crude Oil and marketing of various petroleum products like Asphalt, Diesel, Kerosene, LPG, Lube Oils, Petrol, branded products like ATF (Aviation Turbine Fuel), Power, Turbojet, Naphtha, throughout India and at select foreign countries. Some of these products are exported to other countries.

Disclaimers: The recommendations made above are by market analysts and are not advised by either the author or Greynium Information Technologies. The author, the brokerage firm nor Greynium would be liable for any losses caused as a result of decisions based on this write-up. Goodreturns.in advises users to consult with certified experts before making any investment decision.