Oil India may do well in long term: Mayuresh Joshi

Mayuresh Joshi of Angel Broking told CNBC-TV18, "From a short-term view Oil India will remain under pressure. The under recoveries that we have seen with the rupee depreciation in the Brent movement will mean the subsidy sharing for Oil India even if it is 10 percent of the upstream will be a tad bit higher compared to Q1. So in that sense the subsidy sharing might have some amount of impact on to the bottomline in Q2-Q3.”

He further added, "The stock will perform exceedingly well over the next two years. I think the expectations on the gas front at around 2.74 billion cubic metres (BCM) and oil at around 3.95 million tonne over the next two years augurs well for the stock. Even on the valuation basis, net price value per oil equivalent it trades at around 4.7 compared to Oil and Natural Gas Corporation (ONGC) valuation of 3.6. So, in that sense it looks comparative on valuation parameters, the cash on its books looks well but short-term pressures will be on the stock."
“The stock can correct further from these levels but if one holds on for a long-term view then the stock can exceedingly well over the next two years.”