Morgan Stanley bullish on 4 gas stocks if natural gas is included in GST
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Citing the inclusion of natural gas under GST, global brokerage Morgan Stanley is bullish on gas stocks. The brokerage believes this move could significantly benefit the entire natural gas value chain, offering a range of advantages to various stakeholders. Morgan Stanley identifies Exploration and Production (E&P) companies, specifically ONGC and Oil India, as the primary beneficiaries of this policy change. The brokerage estimates a potential 5% upside to ONGC's standalone earnings and a 3-4% upside for Oil India. This optimistic outlook is grounded in the anticipated operational efficiencies and cost reductions resulting from the GST inclusion. The analysis also highlights the positive implications for other players in the natural gas sector. Indraprastha Gas Limited (IGL) and Gujarat Gas are expected to benefit as natural gas becomes a more favourable alternative to other fuels. This shift is likely to enhance their market pos...