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May 14, 2013, 06.06 PM IST | Source: CNBC-TV18

Buy Oil India, says Rajesh Agarwal

One can buy Oil India, says Rajesh Agarwal, Head of Research at Eastern Financiers Limited. “With subsidy burden going down I think it is going to be a big positive for companies like Oil India, Oil and Natural Gas Corporation (ONGC) because diesel prices have been hiked month on month basis, he adds.

Rajesh Agarwal, Head of Research, Eastern Financiers Limited told CNBC-TV18, "Both Oil India and Tata Steel are very good stocks for ones portfolio and it has to be ones own choice. With subsidy burden going down I think it is going to be a big positive for companies like Oil India, Oil and Natural Gas Corporation (ONGC) because diesel prices have been hiked month on month basis. The government nod for exploration for KG-D6 basin gas received would also be a big positive trigger.”

He further added, “On the whole of that if you look at the valuation it is trading at a P/E of less than 8 which is very cheap going by the fact that the kind of assets this company has, the kind of prospect this company has it is a very good buy but if you have to choose between Tata Steel and Oil India I would suggest put 50 percent of your money in Tata Steel and 50 percent in Oil India.”

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