1 / 6Coal India | Sharekhan has a ‘buy’ rating on Coal India stock, with a target price of Rs 225. Coal India has multiple levers for an improvement in profitability, according to Sharekhan. Coal India’s board has given in-principle approval to divest a 25 percent stake in unlisted subsidiary Bharat Coking Coal and is awaiting approval from the government. A stake sale and potential listing might unlock value, the brokerage house said. The stock offers a high dividend yield of 12-13 percent.
2 / 6Oil and Natural Gas Corporation | Sharekhan has a ‘buy’ call on ONGC’s stock, with a Rs 200 target price. ONGC’s current market price factors in the oil price of only $50 per barrel and ignores strong earnings tailwinds from high oil and gas prices and a dividend yield of 10-11 percent, the brokerage firm said. Hopes of a further hike in domestic gas price and elevated crude oil, due to geopolitical tensions, have brightened the earnings outlook for the company, it added.
3 / 6Oil India | The brokerage house has a ‘buy’ call on Oil India, with a target price of Rs 290. The earnings environment has turned favourable for upstream public sector undertakings, given the expectations of a further hike of about 40-48 percent in domestic gas price and elevated crude oil on geopolitical tensions, according to Sharekhan.
4 / 6GAIL India | Sharekhan says 'buy' GAIL India shares, with a target price of Rs 175. A sharp rally in crude oil and spot LNG prices has improved the earnings outlook for GAIL India’s gas marketing segment. The government’s focus on increasing the share of gas in India’s energy mix bodes well for sustained volume growth for the company’s gas transmission business, according to the brokerage. Plus, the company is evaluating various modes for monetisation of its gas pipeline assets.
5 / 6NTPC | Sharekhan has maintained its ‘buy’ call on NTPC shares, with an unchanged target price of Rs 170. A sharp fall of about 16 percent in NTPC’s stock price from its 52-week high is unwarranted given a risk-averse earnings model and a healthy dividend yield of 5 percent, according to the brokerage house. Additionally, NTPC’s market capitalisation ignores long-term value creation from the expansion plans in the large renewable energy space.
6 / 6Power Grid Corporation of India | The brokerage house says 'buy' Power Grid shares with a target price of Rs 265 as the company's robust project pipeline provides earnings visibility for the next two to three years. Further, Power Grid's transmission asset monetisation plan would help unlock value, provide capital for growth, and result in higher dividends, it said. The stock is attractively valued and offers a healthy dividend yield of 6 percent.
