Investment Advisor, SP Tulsian is of the view that fundamentally HPCL is a quite undervalued stock.
Tulsian told CNBC-TV18, "If you go purely on fundamentals sometimes I find that HPCL is quite undervalued because I remember the differences between HPCL and BPCL used to be about Rs 30-40 and now that has widened to about 30-40%. There have been some breakthrough in the operating performance by BPCL in terms of oil discovery and all that. But still I don't find any problem in case of HPCL at these prices."
He further added, "Indian Oil Corporation, IOC again enjoys the advantage of its size they about three times of HPCL or Bharat Petroleum Corporation, BPCL so even that company has an advantage. Recently they have issued bonus in the ratio of 1:1, so going purely on the fundamental basis I would put first as HPCL, second as IOC and third as BPCL . But yes the trading interest or the volatility we are seeing more in case of BPCL where traders are really finding it quite interesting because they get a swing of about Rs 10-15 whenever we have such news flow you need to define yourself whether you are an investor or a trader. But overall my view even on the ONGC front because as we have discussed the cooking fuel subsidy is going to continue, so a part of that burden can get slab on the ONGC and upstream companies also. So all these stocks are not too selected or too preferred for someone to have in his or her portfolio. These are purely for the trading bumps or the trading gains whenever you have such nuewsflows."
