Buying opportunity seen in BPCL, HPCL: PN Vijay

PN Vijay told CNBC-TV18, “OMCs, after the parliament session is over as all of us are hoping there would be some adjustment in LPG, diesel and petrol prices. To that extent it will flow to the bottom-line of the oil companies. Also if you see the NYMEX and the Brent and India’s basket and see the price at which they really import. That has come down 10% for them last one month.”

He further added, “If you get that 10% there you take away about 5% of the rupee so they still get about 5% on the bottom-line and they get 7-8% EBITDA increases can’t whistle it away. So the oil marketing companies they have a huge debt on their hands because their working capital etc but on the balance if you want to take a punt BPCL and HPCL would be great opportunity and I think punters are sensing that.”