Looking for a multi-badge? This PSU oil and gas storage holds promise

NEW DELHI – June’s quarterly results have improved analysts’ estimates as oil and gas production improves after four quarters.

Analysts say the state-run PSU’s acquisition of control in the Numaligarh Refinery (NRL) and the prospect of increased oil production have led to a revision of revenue estimates, with some saying the stock has doubled.

Prabudas says Liladder Oil is in India’s turnaround. He said the risk-reward was favorable for the stock, adding that the risk of capital allocation was too high. In the NRL, it is called the “masterstroke”.

This broker is very aggressive against Oil India and has set a target of 328 rubles in stock. The stock now trades around 163 rubles. The target is 100 percent upwards. pegs share price at 232 rubles. Centrum Brokers and JM Financial will see the stock at 225 reais, and Motall Oswal Securitis at 200 rubles.

Oil India bought its pig-based NRL to 80.16 percent after buying 54.16 percent. 10.5 percent of this share will be bought back by the pig government. The remaining 69.6 percent of the NRL is 19 rubles in the consolidated EPS, while Central Braking is priced at 87 rubles per share. “NRL continues to benefit from the excise discount on GRMs, which may continue to support group revenues. The purchase went up to Rs 14,000 crore on its own, but Oil India was able to pay 400 million rubles in the next quarter. He plans to pay between 700 and 800 million rubles a quarter. Donations will not be a concern at FY23, ”said Centrum Breaking.

Analysts say that filters in the Northeast comply with 50 percent of excise obligations, which allows the NRL to enjoy higher filter edges despite the worst filtering conditions.

Compared to the $ 5-6 excise tax benefits per FY13-14 per barrel, the benefits are now $ 30-33 per barrel on high excise obligations.

“Thus, compared to the $ 4-5 GRM barrel reported by its larger filter peers, the NRL reported 37.2 barrels at 37.2 barrels in June. In our estimation, the NRL’s June quarter GRM could increase by $ 30 per excise tax benefit. A barrel is worth $ 5.2 per barrel, according to Numera India.

The company has achieved its oil production target of 3.05 million tons, compared to 2.96 million tons. At 3.2 billion cubic meters (BCM), gas production will be 2.6 billion cubic meters during the fiscal year. Due to fire-related issues, most of the gas production comes from the Baghdad field.

In fact, Oil India, about 5 millimeters of gas from the field, at 1.6-1.8 mmscmd is now a target for 3-5 years.

“The administration has started work on three more drilling wells, one of which has recently been completed in Baghdad. Brent prices have started to fall sharply. The distributor says the stock will sell 8.4 times the long-term P / E for the next one year with a 25 percent discount.

Analysts say India is one of the key beneficiaries of the high price of crude oil, with each dollar rising in value by 2 percent. The fall in crude oil prices and any change in government policy on the Northeast excise tax are a risk to the stock market.

JM Financial says the gas station could increase or decrease domestic gas prices in the future.

When gas is available, Numera India expects domestic gas prices to rise sharply by $ 1.1-2.9 in April 2022 by mmbtu. Primarily due to very low prices. The broker expects the sector to return to profitability by the middle of the 22nd year of rising domestic gas prices.

The PSU Major wants to find 5-5-5,500 reais in the caps, of which 4-4-400 reais for Oil India and the NRL filter for 1000-1,200 Rebels. NRL remains a buyer as the company carries 50 percent excise duty on gasoline and diesel sales and EPS is tedious. Oil India has said it will “buy” stocks at a target of 328 rubles.


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