Buy oil stocks, says Ajay Srivastava

Buy oil stocks, says Ajay Srivastava, CEO - Dimensions Consulting Pvt Ltd.

Srivastava told CNBC-TV18, "It has been four months, we have been saying yes to the oil stocks. Even today we agree the fact that oil stocks should be bought into because the repricing is going to happen. It has not happened as fast as we thought it will happen, but the price increase is taking place regularly. So these companies should look lot better in a year’s time."
He further added, "If you are building up a portfolio I think you could easily look at 50-60 percent upside in this portfolio on just the three oil companies in a matter of a year or so. They are pretty undervalued for any global context if you look on a market-to-book value ratio. So there is lot of scope there and I do not think there is any major scope for a downside surprise."