India Oil And Gas Sector Check - Value Trade Is Fading Away: Motilal Oswal

NDTV Profit’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer NDTV Profit’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..Motilal Oswal Report.The average one-year forward price/earning valuation for the 15 oil and gas stocks in our coverage is 13.5 times now, up 35% versus June 2023. Barring a few stocks, which still have reasonable valuations, we believe the value trade has all but faded away for the Indian oil and gas sector. We now prefer Hindustan Petroleum Corporation Ltd. over GAIL india Ltd. and Oil India Ltd., where we believe valuation comfort is lower and earnings delivery is critical. HPCL trades at FY26E price/book of 1.2 times (FY26E return on equity: 17.8%) versus GAIL’s 1.7 times and Oil India’s 1.3 times (FY26E RoE of 15%/16%). We highlight Gujarat Gas Ltd. as a potential beneficiary of the possible inclusion of natural gas under GST and believe that the impact for other oil and gas players will be marginal in the short term. Gujarat State Petronet Ltd.’s current market price implies a 45.3% holding company discount on Gujarat State Petronet’s stake in Gujarat Gas.However, the long-term average discount has been 28% while the maximum discount was 60%. We continue to highlight Gujarat State Petronet as an inexpensive way to take exposure to Gujarat Gas..Click on the attachment to read the full report:.Automobiles Sector Check - Will This Year See The Clash Of Titans Yet Again? Motilal Oswal's Analysis.DISCLAIMERThis report is authored by an external party. NDTV Profit does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of NDTV Profit..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

India Oil And Gas Sector Check - Value Trade Is Fading Away: Motilal Oswal

Oil marketing companies, ONGC, Gujarat State Petronet are the only pockets of value remaining in oil and gas

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