Why Motilal Oswal expects big upside in OMC stocks
Updated : June 19, 2019 11:16 AM IST
Indian Oil Corporation (IOCL) is the top pick among the oil marketing companies (OMCs) for Motilal Oswal. It believes that its FY20-21 estimated free cash flow generation of Rs 23.6/share along with dividend yield at ~5 percent is attractive.
It also added, " The polypropylene plant at Paradip and 5mmtpa Ennore LNG terminal has already been commissioned.” The brokerages house implied 27 percent upside on the stock with target price of Rs 200 per share."
The brokerage believes that the low oil price and stable rupee are expected to pave the way for the next phase of reforms for OMCs.
Have you signed up for Primo, our daily newsletter?It has all the stories and data on the market, business, economy and tech that you need to know.
THANK YOU! You made our day. See you every morningYOUR EMAIL IS ON ITS WAY. Check your inbox for future updates.
To keep watching CNBC-TV18, India's No. 1 English Business News Channel, call your Cable or DTH Operator and subscribe now for just Rs. 4 per month. You can also subscribe to CNBC-TV18 Prime HD for Re 1/- per month.Find out more