Stock Market Today: Oil and Natural Gas Corporation , Oil India, Reliance Industries’ share price saw a rise of up to 3% in intraday trades on Tuesday. Government’s removal of windfall tax is likely to remove a major burden on stocks
ONGC share price which opened 260.65, slightly higher than previous close 257.60. ONGC’s share price rose yet further Marking 264.55 with gains of up to 3%. Oil India’s share price rose more than 1% and so did Seylan Exploration Technology Ltd, Hindustan Oil Exploration Company Ltd, Reliance Industries Limited among others.
windfall tax removal
Analysts said the eventual withdrawal of windfall tax on crude oil production and notification on diesel/ATF/gasoline exports would be positive for oil and gas producers, primarily ONGC and Oil India, although it could also benefit others. Is.
Reliance Industries, exporter of diesel and other petroleum products, may also benefit, although upstream oil and gas producers will benefit more as a major overhang has been removed.
Analysts said the decision is a mere formality as there has been no windfall tax on diesel, aviation turbine fuel, gasoline for more than a year.
ONGC, Oil India are major beneficiaries according to analysts
For crude, while the current windfall tax is nil due to low prices, there is a risk of the taxes returning if oil prices rise again, said Kotak Institutional Equities, who said this is more positive for upstream companies. . Kotak has increased the fair price for Oil India to Rs 360 from Rs 345 earlier. For Oil and Natural Gas Corporation or ONGC stock, Kotak has raised its rating from Low to Add with Fair Values It is also being increased from earlier Rs 270 to Rs 285.
Analysts at ONGC and Oil India have generally maintained a positive outlook given rising oil and gas production and rising gas prices.
For ONGC, Elara Securities expects KG-98/2 production ramp-up to drive 6% net profit CAGR (compound annual growth rate) during FY 2024-27 despite weak crude oil price of around $75 per barrel. Will happen. Elara reiterates Buy view given 2-3% oil & gas production CAGR in FY24-27 and high natural gas realization from new wells/fields (~40% premium to existing APM production).
For Oil India, Antic Stock Broking had said production growth remains strong and with IGGL progress nearing completion, Oil India is close to a stage where growth will not be restricted due to any production constraints, Antic said. Said to have a positive rating for the stock.
Disclaimer: The views and recommendations given above are those of individual analysts or broking companies and not of Mint. We advise investors to check with certified experts before taking any investment decision.
