Centrum Broking on Tuesday said it expects strong Q2FY22 for the entire oil and gas sector and sees more upside in Oil India Ltd.
In an interview with CNBC-TV18, Probal Sen, senior vice president at Centrum Broking said, "If you look at the oil and gas sector prospects, this quarter it is going to be fairly strong. One would expect almost 50 percent YoY increment in EBITDA and between 45 percent and 50 percent increment in net profits for the quarter."
"For FY23, depending on the domestic gas prices and the kind of momentum that we are seeing in crude prices, all of that adds up to a possibility that standalone earnings can probably continue to see a little bit of an upgrade beyond the current levels that the street is holding," he said.
"That is irrespective of whatever production growth or decline – most of us are now building in a flat to a low single-digit decline in the near-term till the KG basin asset starts to ramp up and produce the kind of targeted gas and some of the oil production," Sen said.
"Between the stocks, Oil India has perhaps reflected some of the increase and some of the bullishness in the pricing and ONGC is still a little bit of a laggard. So I would say that there is probably more upside there between the two names," he added.
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