Ajay Srivastava, CEO of Dimensions Consulting is of the view that one may buy oil marketing companies.
Ajay Srivastava, CEO of Dimensions Consulting told CNBC-TV18, "Oil marketing companies are two years favourite, continue to be the favourite. They are underpriced if you ask me personally and with a little bit of privatisation or vigorous management they can do lot better in terms of performance, so instead of two years we continue to say these are good buys, whether you should buy it tomorrow I am not too sure but any correction happens or you think you don’t have it in the stock this is a must hold for 4-5 years at least, because a long rally to go, its way under price to the fundamentals, so I would still say good ahead."
"I think the price to book is about 3.5 or somewhere around that for BPCL for instance. Fantastic, just go and buy it, it’s a clean stock, clean company, good margins, fantastic business and perpetuity of business. The real estate itself is a control in terms of the company and the dealerships. You can’t get access to that again, so any of three companies buy it including of course BPCL is number one," he added.The Great Diwali Discount!
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First Published on May 28, 2016 10:31 am