Should you buy GAIL, Oil India, IGL, and other oil and gas stocks? Heres what Morgan Stanley suggests
GAIL India share price target: Morgan Stanley has maintained an overweight call State-run natural gas major GAIL. The brokerage has raised the target to Rs 213 from Rs 195 on the PSU stock.
Oil and gas stocks in India: Morgan Stanley expects gas market oversupply to reach multi-decade highs over the coming years. In a report, the global brokerage said that it will inflect demand, especially in India & Southeast Asia and save $10 billion in energy costs through 2030 with energy consumption rewiring back in favour of gas for the region.
Gas accelerates renewable adoption and also partly solves policymaker trilemma of supporting AI adoption and decarbonisation at affordable prices, the brokerage in its report read.
Here's what Morgan Stanley bets on the following stocks from oil & gas sector:
GAIL India share price target
Morgan Stanley has maintained an overweight call State-run natural gas major GAIL. The brokerage has raised the target to Rs 213 from Rs 195 on the PSU stock.
IGL share price target
The brokerage has upgraded the gas distribution company Indraprastha Gas (IGL) to overweight from equal-weight, with a rise in target price to Rs 522 from Rs 413. The revised target implies an upside of 23 per cent.
Petronet LNG share price target
Petronet LNG Ltd, India's largest liquefied natural gas target price was raised to Rs 239 from Rs 219, while the brokerage maintained an equal-weight rating.
Gujarat Gas share price target
Morgan Stanley has maintained an overweight call on Gujarat Gas. The brokerage has raised the target to 629 from 579.
GSPL share price target
The brokerage has maintained an underweight rating on Gujarat State Petronet Limited (GSPL), India's second-largest gas pipeline utility ( GSPL), with a raised target to Rs 298 from Rs 262 earlier.
Oil India share price target
The brokerage retained an overweight call on Oil India Ltd (OIL), the nation's second-biggest state-owned explorer and producer of oil and natural gas. The brokerage has raised the target price on the PSU stock by Rs 258 to Rs 745 from Rs 487, translating to an upside potential of 21 per cent from the previous close.
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