Country's major brokerage firm Motilal Oswal According to, Oil and gas sector Now! Better fundamentals and attractive valuation Because of this, providing a great investment opportunity. In this report Hindustan Petroleum (HPCL) और Gail It has been described as the top pics.
Low valuation, strong fundamentals and limited downside risk Stability in refining margin and support of government policies Gas transmission volume improves and expansion of petrochemical business
Bottom-upgrade unit will be operational – HPCL in Q4Fy25 Bottom-upgrad unit Is going to launch, which will increase the refining capacity. Rajasthan refinery launched – New refinery will start in Rajasthan by 2025Which will increase the production capacity of the company. Demker and listing of lubricant business – HPCL's Lubricant business separate list Potential, which will benefit the shareholders. LPG Under-Vagavar compensation – From the government Hope to get support for LPG Under-Wrovery Is, which will further strengthen the financial position of the company.
HPCL Cals I values
Increase in gas transmission volume – FY24 120 mmscmd From fy27 154 mmscmd Estimates of reaching. Petrochemical business improves – Margine will increase by fY27 due to new capacity And the company's profitability will be strong. मजबूत Free Cash Flow (FCF) –
Roe improvement – in fY23 16% from 9.5% to FY26 Estimates of arrival. Gail evaluation (sotp based target)
| Segment | Multiple (x) | FY27e ebitda (₹ billion) |
|---|---|---|
| Gas transmission | 9x | ₹ 95 billion |
| Lpg transmission | 8x | ₹ 5 billion |
| Gas trading | 6x | ₹ 55 billion |
| Petrochemical | 7x | ₹ 28 billion |
| LPG | 6x | ₹ 19 billion |
Macro factor favorable: The sector is benefiting from softening of crude oil prices and government policies. On gas distribution (CGD) growth in cities: Government schemes to increase domestic gas consumption are benefiting. Risk of weakening rupee: However, low crude oil prices can balance this effect. Dividend yield attractive: OMCs, ONGC and GAIL are getting a dividend yield of 4-6%, which is close to an average of 10 years. Earning strength and limited downside: According to brokerage, till FY26 There is no possibility of big loss in earnings।
HPCL और GAIL In both companies Strong opportunity for long term investment Is visible in HPCL Refining capacity, lubricant business demar and lpg support There are large growth factor. in gail Gas transportation volume and petrochemical business growth The main reasons are. According to brokerage, Valuation still attractive Are and in the sector Risk risk limited Is.
