Jefferies downgrades 5 stocks including GAIL,BPCL, Gujarat Gas to underperform in Oil&Gas sector; whereas Mahanagar Gas still remains the top pic of Jefferies In a recent analysis of the Oil & Gas sector, Jefferies has downgraded five stocks, including GAIL, Gujarat Gas, Bharat Petroleum, Hindustan Petroleum, and Petronet LNG, to ‘underperform.’ However, Mahanagar Gas continues to hold its position as Jefferies’ top pick. The brokerage firm suggests a ‘hold’ rating for Indraprasth and Indian Oil. The report notes that the valuation for GAIL is perceived as rich, marked by a deviation of +2 standard deviations, coupled with an anticipated flattish FY24-26E EPS. Jefferies favors Mahanagar Gas among City Gas Distribution (CGD) companies due to its robust earnings visibility, attractive valuation, and dividend yield. While maintaining ‘underperform’ ratings for BPCL and HPCL, Jefferies cities premium valuations compared to the last cycle average as the primary reason. The report underscores the reasonable valuation and potential upside risks in Reliance Industries, including the possible listing of Jio and value discovery in the New Energy sector. BUY | CMP: 162 | TARGET: 143 | Rating: UNDERPERFORM BUY | CMP: 1223 | TARGET: 1450 | Rating: BUY BUY | CMP: 422 | TARGET: 430 | Rating: HOLD BUY | CMP: 498 | TARGET: 385 | Rating: UNDERPERFORM BUY | CMP: 461 | TARGET: 405 | Rating: UNDERPERFORM BUY | CMP: 422 | TARGET: 330 | Rating: UNDERPERFORM BUY | CMP: 132 | TARGET: 130 | Rating: HOLD BUY | CMP: 229 | TARGET: 195 | Rating: UNDERPERFORM