Investment Advisor SP Tulsian is of the view that one can book profits in ONGC .
Tulsian told CNBC-TV18, "If you see the recent fall in the crude prices though that is negative for ONGC but it has in fact a non-event for the company because they have been realising at around USD 70/bbl irrespective of the price movement because when the crude was at around USD 145/bbl and even if they have realised the value at around USD 130/bbl or USD 135/bbl they have to pass on the excess receipts to the downstream companies that is to the oil-marketing companies. So probably as long as crude remains whether at USD 100/bbl, USD 130-140/bbl doesn't make any difference to them because probably the upside or the bottomline of the company is capped and the problem with the company is that they are not sure of what kind of credit note or the credits they have to pass on to the oil-marketing companies."
He further added, "On a quarter-on-quarter basis they do it on the instructions received from the ministry, which is again not a good thing for a listed company. Taking all into this consideration probably the share price has reached to its level to around Rs 1,100 in fact this gives a lot of trading opportunity, this could even in investment based trading opportunity. So my advice is to get out, book profit at these levels."
