Stock market analysts have maintained ‘buy’ rating on Essar Oil stock with an intraday target of Rs 238.

According to them, interested traders can purchase the stock above Rs 234 with a strict stop loss of Rs 230. If the stock market remains on positive track, the stock pricing becomes more attractive, and reach above Rs 244.
 
Shares of the company, on Friday (Aug 08), closed at Rs 233.75 on the Bombay Stock Exchange (BSE). The total volume of shares traded at the BSE was 3350978. The share price has seen a 52-week high of Rs 360 and a low of Rs 48 on BSE.

The stock has great potential. It can still exhibit superb surge and it will achieve the target price as the company has robust growth plans and strong operating capabilities.

For the three months period ended June 2008, Essar Oil has registered a profit of Rs 299.30 million compared with a loss of Rs 56.70 million in the same quarter previous year.

The company posted profit of Rs 0.25 per share during the same period as against a loss of Rs 0.05 a share in prior year period.

Net sales for the quarter zoomed 46.78 times to Rs 89,504.70 million, whereas total income for the quarter climbed 45.55 times to Rs 90,160.30 million, when compared with the prior year period.

The company has also decided to start supplying jet fuel or aviation turbine fuel (ATF) to the country’s Armed Forces by the coming month (September 2008), breaking into territory monopolized by state-owned oil firms.

The company has been issued a so-called certificate of type approval, a prerequisite for supplying jet fuel to the Armed Forces, by the Centre for Military Airworthiness Certification, or CEMILAC.

Moreover, Essar Oil has sold a 60,000-tonne fuel oil parcel for end-August loading to Middle East trader Fal Oil.

Other stocks from the same sector that looks good for short-term as well as long-term trading includes MRPL, BPCL HPCL and Reliance Petro.