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ONGC

The Oil and Natural Gas Corporation is a state-owned crude oil and natural gas company in India. New Delhi is the company’s registered office. It is owned by the Indian government’s Ministry of Petroleum and Natural Gas. It has a market capitalization of Rs. 147,503.77 crores, putting it in first place. They can expect a high rate of return in the future if they invest a small amount now. Oil And Natural Gas Corporation Ltd. has declared an equity dividend of Rs 1.75 per share in the last 12 months. This equates to a dividend yield of 1.51 percent at the current share price of Rs 116.20.

In the past year, the stock has gained around 50% and is now rading at Rs 114 on NSE.

BPCL

Bharat Petroleum Corporation Limited is an oil and gas company owned by the Indian government. It is owned by the Government of India’s Ministry of Petroleum and Natural Gas, which is based in Mumbai, Maharashtra. BPCL has a PE ratio of 5.21 which is low and comparatively undervalued . Since June 18, 2001, Bharat Petroleum Corporation Ltd. has announced 33 dividends.

Bharat Petroleum Corporation Ltd. has declared an equity dividend of Rs 21.00 per share in the last 12 months. This translates to a dividend yield of 4.6 percent at the current share price of Rs 456.10. Over a three-year period, the stock returned 14.02 percent, while Nifty Energy returned 27.48 percent to investors.

Indian Oil Corporation

Indian Oil Corporation Ltd., or IOCL, is India’s third-largest public sector gas firm. Its shares are one of India’s most actively traded petroleum stocks, with a minimal level of market risk.

Each share is inexpensive, and an investor can purchase a huge number of them. The 52-week low was Rs 71.65, while the 52-week high was Rs 117. The dividend on IOCL shares is 5.07 percent, and it is distributed to shareholders in proportion to the number of shares they own.

The company’s net value is Rs.98,283.82 crores, and it is continually expanding. Indian Oil Corporation Ltd. has declared an equity dividend of Rs 12.00 per share in the last 12 months.

This translates to a dividend yield of 11.48 percent at the current share price of Rs 104.50.

Gujarat Gas

The Gujarat State Petroleum Corporation owns it, and its market value is Rs. 52,937.20

crores. The company was founded in 1980 and now serves the entire state of Gujarat as the largest city distributor.

Gujarat Gas Ltd. shares have successfully crossed the 52-week low and are currently trending higher.

Hindustan Petroleum

With headquarters in Mumbai, Maharashtra, Hindustan Petroleum Corporation Limited is a subsidiary of Oil and Natural Gas Corporation. It has a 25% market share among public sector undertakings in India, as well as a strong marketing infrastructure. HPCL (Hindustan Petroleum Corporation Ltd.) is one of the country’s main natural gas service providers.

HPCL currently has a net value of Rs. 37,577.35 crores, and this figure is expected to rise consistently as the company expands its portfolio.

Since July 27, 2000, Hindustan Petroleum Corporation Ltd. has announced 32 dividends. Hindustan Petroleum Corporation Ltd. has declared an equity dividend of Rs 22.75 per share in the last 12 months. At the current share price of Rs 265.05, this translates to an 8.58 percent dividend yield.

GAIL India

GAIL Limited, located in New Delhi, India, is a government-owned natural gas corporation responsible for natural gas processing and distribution in India. It is owned by the Indian government’s Ministry of Petroleum and Natural Gas. Since September 3, 2001, GAIL (India) Ltd. has declared 42 dividends.

GAIL (India) Ltd. has issued an equity dividend of Rs 5.00 per share in the last 12 months.

This calculates to a dividend yield of 3.49 percent at the current share price of Rs 143.45.

Adani Gas

Adani Total Gas is building City Gas Distribution (CGD) Networks to distribute Piped Natural Gas (PNG) to the industrial, commercial, residential, and transportation sectors, as well as Compressed Natural Gas (CNG). Adani Total Gas Ltd, the Adani Group’s city gas joint venture with TotalEnergies of France, announced a three-fold increase in its June 2021 quarter net profit to Rs 138 crore on Wednesday, Adani Total Gas declared three dividends.

Adani Total Gas Ltd. has declared an equity dividend of Rs 0.25 per share in the last 12 months.

This equates to a dividend yield of 0.03 percent at the current share price of Rs 885.00.

Disclaimer

Petronet LNG, Mahangar Gas, Indraprastha Gas, GSPL are some of the other popular gas companies in India.

Investing in stocks is risky and investors should do their own research. The author, the brokerage firms or Greynium Information Technologies are not responsible for any losses incurred due to a decision based on the above article. Investors should hence exercise due caution as the Nifty has now crossed an historic peak of 16,000 points. Please consult a professional advisor.

SBI: Stock to gains 33% from current levels

The brokerage said that the bank reported a steady quarter, with an earnings beat of 12% on some of its own parameters. This was aided by controlled provisions despite a challenging environment. Core operating performance was in-line.

“Asset quality ratios deteriorated marginally on elevated slippage in Retail/SME. However, the management clarified that slippage worth Rs 48 billion has already been recovered/upgraded in July’21. Furthermore, the total restructured book remained in check, while SMA 1/2 (exposure of >Rs 50 million) was stable QoQ at Rs 113 billion (0.5% of loans),” the brokerage has said.

SBI: Controlled provisions led to better earnings

State Bank of India reported first quarter profits for FY22 of Rs 65 billion (55% YoY growth; 12% above estimate), aided by lower provisions (20% YoY decline) v/s Motilal Oswa’s own estimates. Net Interest Income growth was weak at 3.7% YoY (4% miss), with domestic Net Interest Income up 4 basis points QoQ to 3.15%.

Motilal Oswal Financial estimates for State Bank of India (in billion)

Why Motilal Oswal has a buy on the stock of SBI?

Asset quality ratios deteriorated marginally on elevated slippage in Retail/SME. According to Motilal Oswal, the management clarified that slippage worth Rs 48 billion has already been recovered/upgraded in July’21. Furthermore, the total restructured book remained in check, while SMA 1/2 (exposure of Rs 50 million) was stable QoQ at Rs 113 billion (0.5% of loans)

According to the brokerage, the bank is gaining momentum in earnings every quarter. “Thus, we estimate SBI to deliver FY22/FY23 Return on Equity of 13.1%/14.6%, even as we build in credit cost of 1.6%/1.3% for FY22E/FY23E. Maintain BUY, with revised price target of Rs 600,” the brokerage has said.

Other brokerages too have a buy on the stock

Some other brokerages like Goldman Sachs, CLSA etc., too have maintained buy on the stock.

CLSA has maintained buy call after the bank reported a solid performance and continued to deliver on asset quality.

“The Net Interest Income was a miss driven by yield pressure & a lack of growth. PpoP/net profits estimates cut by 1-3% and expect the bank to deliver a 14% Return on Equity in FY22 & 15% from FY23,” it said.

Disclaimer

The above stocks are based on the report of Motilal Oswal Institutional Research. Investing in stocks is risky and investors should do their own research. The author, the brokerage firms or Greynium Information Technologies are not responsible for any losses incurred due to a decision based on the above article. Investors should hence exercise due caution as the Nifty has now crossed an historic peak of 16,000 points. Please consult a professional advisor.

Gold prices have been experiencing uncertainty in the MCX since last month. The market is obviously quite down than it was eight to nine months ago.

On 4th August, in MCX (FUTCOM) the gold market opened with Rs. 47920 (per 10 grams). The scale went highest to Rs. 47950. It has seen a 0.17% change in the price. Besides gold, silver started with Rs. 67956 and last traded with Rs. 68156. These fluctuations are impacting the prices of gold in every city in India.

How spot gold prices are moving?

The spot market price of gold is on the other hand trading low at Rs. 47842 per 10 grams. Indian spot gold prices are actually showing a flat scale since July. It is quite down from last year’s up-turning curve. Global economic crisis, investors’ fear regarding the oil and US dollar helped gold to reach its peak back then. But the situation has changed now.

This happened ahead of US jobs data that is to be released soon this week. The expectations locked the price range tight. Investors are also buoyed by worries due to the spread of the coronavirus delta variant and low bond yields. The Federal Reserve is about to take strong decisions regarding the country’s employment scenario and economy. As the Fed takes decisions about bond yields and interest rates the gold prices will again see its pace.

In a meeting earlier on June 16, Fed Governor Jerome Powell elevated the forecast of economic growth and inflation in the states. The Fed additionally projected two likely hikes in interest rates. This tight monetary policy was not expected for all investors; it was a sudden change for some of them. They became skeptical one way or another.

On the other hand, federal banks in other parts of the globe, like in European countries or in Japan, did not think about interest rate hikes in their countries. This certainly says that the US, unlike other countries, is quite focussed to give US dollar a better and stronger hold in the global market.

The economic slowdown of the USA in the last year has triggered the US Fed and their think tanks. This is influencing the gold prices directly. Growing valuation of the US dollar this year is indicating the current trend of falling gold prices in the long term.
But in the currency exchange the valuation of the US dollar did not show much change today (4th August). It actually helped the gold mcx in India to get a better outlook.

The gold market is now overall showing a muted reaction in daily gold prices for both futures and spot. The monthly reactions are prominent though. From January the monthly rates have been falling in big numbers. Certainly it is a good time to invest in gold; but not to sell the gold in reserve.

A larger picture says that gold prices fell (4% in Q1 2021) due to a drop in financial investment demand due to rising US real yields.

A report titled ‘Commodity Markets Outlook – April, 2021’ states, “The yield on 10-year treasury Inflation-Protected Securities rose from -1% in January to -0.66% in March – its highest level since June 2020. Higher real yields make gold less attractive to investors. Gold-backed exchange-traded funds holdings have also fallen sharply in recent months, and central banks have reduced gold purchases.”

Gold prices thrive when the news is negative?

Gold rates tend to outperform when there is pessimism and the world can be full of that. From a Covid third wave to rising inflation, there are more triggers for gold to go up, then down. Gold is a precious metal and identified as a hedge against inflation. Keeping in mind the higher inflation rates likely across the globe, the yellow metal might rise again soon. Beside the physical demand of gold, investments in SGB and through ETF are having promising views. So, time will only be able to tell if gold will continue to glitter this year or not. Investors are certainly hopeful for the long term.