Higher crude prices likely to bring more upside for ONGC, OIL and GAIL

Mumbai: Shares of ONGC, Oil India and GAIL are poised for more upsides as rising crude and gas prices are expected to boost their profitability. Brent crude prices have rallied 35% in the past one month to $122 per barrel on Tuesday as economic sanctions on Russia have aggravated supply concerns.

“ONGC, Oil India, and GAIL are the key beneficiaries of rising crude prices,” said Dayanand Mittal, analyst, JM Financial. “ONGC and Oil India are discounting $60-65 per barrel brent at the current market price. Every $1 per barrel rise in crude realization implies a 2-4% increase in earnings per share of these two companies.”