Dolly Khanna portfolio stock Chennai Petroleum Corporation is good buy due to GST reforms

Dolly Khanna holds 16,18,520 shares of Chennai Petroleum Corporation Limited (1.09 percent of the total paid-up capital) in the April to June 2024 quarter.

Experts of Fundamental analysis say oil stocks are a good buy because the Govt is proposing to bring petrol and diesel under the GST. Many state governments have agreed. Chennai Petroleum Corporation and other private oil companies would also benefit from this move.

Saurabh Jain of SMC Global Securities confirmed this analysis: "Chennai Petroleum Corporation shares and many other Oil Maker Company (OMC) shares are rising on the market buzz that the GoI is trying to bring petrol and diesel prices under the GST net in the upcoming Union Budget 2024. If this happens, oil manufacturing companies and the industry will greatly benefit. That's why Chennai Petroleum Corporation shares are rising today."


"The move would bring uniform pricing of petrol, diesel, and other petroleum products, which is expected to benefit oil companies and the industry. The move may turn out a big step in containing inflation as petroleum products, especially petrol and diesel prices, affect the nation's entire economy", Avinash Gorakshkar of Profitmart Securities explained.

Even otherwise, Chennai Petroleum Corporation is a fundamentally strong stock and investors can add the stock to their portfolios on dips.