Oil & Gas Q3 Preview- Earnings To Remain Under Pressure; Systematix Lists GAIL, Gulf Oil Among Top Stock Picks

Oil & Gas sector has significantly underperformed the Nifty index by 550 basis points over the past three months following 330 bps underperformance in last quarter..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..Systematix Research Report.For Q3 FY25, our gas sector coverage universe’s Ebitda is expected to decline sharply 17% YoY (-7.9% QoQ) to Rs 60.7 billion largely led by lower margin for city gas distributions and weaker profit from GAIL India owing to lower trading profit. On CGDs, Indraprastha Gas and Mahanagar Gas are expected to report a volume growth of 9%-11% YoY while Gujarat Gas’s volume is estimated to remain flattish. However, lower allocation of APM gas would lead to lower gross margin despite price hikes taken during the quarter. Higher Henry Hub gas price and lower spread over Brent are likely to hurt GAIL’s earnings. Reliance is expected to benefit from higher GRM, better petrochem spread and higher telecom tariff while Retail business to see a modest growth. Gulf Oil, however, is expected to report a healthy growth owing to higher volume and lower base oil price. Further, Petronet LNG is also estimated to report healthy numbers on the back of higher volumes at Dahej. We keep Reliance Industries, GAIL, Petronet LNG and Gulf Oil as our top picks in the sector..Click on the attachment to read the full report:.Oil And Gas Q3 Results Preview — OMCs To Drive Sector Growth; GAIL Among Dolat Capital's Top Pick.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.

Oil & Gas Q3 Preview- Earnings To Remain Under Pressure; Systematix Lists GAIL, Gulf Oil Among Top Stock Picks

Systematix expects spot LNG price to decline sharply post winter which would benefit gas utility companies.

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