Analysts recommend buying these Oil & Gas stocks; see upside of up to 21%

Shares of oil marketing companies such as HPCL, BPCL and IOCL have corrected 9-18 per cent since mid-Feb as the gross marketing margins on petrol and diesel have declined to an average of Rs 2.3 to Rs 0.2 per litre in April 2024 from an average of Rs 8.0 to Rs 3.4 per litre in the fourth quarter of financial year 2023-24 (FY24), said those at Motilal Oswal. 

Analysts at Motilal Oswal believe that the current weakness in marketing margins is largely attributable to geopolitical headwinds, ongoing refining capacity maintenance, and elevated freight rates for oil transportation. 

The brokerage expects marketing margins