Stock to buy: Anand Rathi recommends Gandhar Oil Refinery as its stock pick for the month | Stock Market News
Source: Live Mint
Brokerage firm Anand Rathi has picked Gandhar Oil Refinery (India) as the stock pick for the month of October 2024. The brokerage firm recommends buying in the 225-228 range with a target of 255 and a stop-loss at 208, based on a daily closing.
Gandhar stock closed 3.70 per cent higher on Wednesday’s trading session at ₹229.49 per share. The stock has gained over 6.78 per cent in the last one month and 4.38 per cent in the last six months.
“Recently, Gandhar has broken out from the Ichimoku cloud, coinciding with a violation of the bearish trendline on the daily chart. On the indicator front, the RSI has formed a base near the 40-50 level range, just before the breakout, signaling potential bullish momentum in the coming sessions,” the brokerage firm said in a note.
About the order
The company’s foreign subsidiary, Texol Lubritech FZC, secured an order from the Abu Dhabi National Oil Company (ADNOC), in July.
The order’s scope covers manufacturing, packaging, labeling, and making the products available to ADNOC Distribution on a contractual basis.
The estimated annual value of the contract is approximately $45 million (around ₹375 crore) for each year in 2024, 2025, and 2026. The contract is set for a three-year term.
The projected average annual volume for the order is 30 million liters per year throughout the contract duration, with pricing determined based on the formula specified in the agreement.
Gandhar Oil Refinery specializes in refining and producing various specialty oils and lubricants, including liquid paraffin, greases, automotive lubricants, petroleum jelly, and rubber processing oils.
The company’s shares debuted on the stock market in November 2023 with an IPO price of ₹169. The stock initially surged, listing at a 76% premium at ₹298. However, after reaching an all-time high of ₹344, it has since declined and now trades 35% below that peak.
