Moneycontrol Be a Pro
Get App
Last Updated : Mar 24, 2015 03:58 PM IST | Source: Moneycontrol.com

Downstream oil cos in 'bright spot' in energy: Goldman

"With diesel/ gasoline prices now adjusting to international levels every fortnight and direct transfer of subsidy to LPG consumers kicking in, we continue to see better cash flows and returns among OMCs," a Goldman Sachs report says.

 
 
live
  • bselive
  • nselive
Volume
Todays L/H
More

Downstream oil companies, especially state-owned oil marketing companies, remain the ‘bright spot’ in Indian oils coverage, said Goldman Sachs in a research report.


On the other hand, performance of upstream companies may be impacted by uncertainty of reforms for PSU companies, unappealing outlook on crude oil prices and sluggish offtake of long-term LNG in India due to availability of cheaper spot LNG and fuel oil.


"With diesel/ gasoline prices now adjusting to international levels every fortnight and direct transfer of subsidy to LPG consumers kicking in, we continue to see better cash flows and returns among OMCs," the report adds.

Close

Goldman Sach believes the core valuations of OMCs are still inexpensive despite movement in OMC stocks over the last year.

It added BPCL to its conviction buy list with a 12-month target price of Rs 996 and upgraded IOCL to ‘buy’ from ‘neutral’ with a 12-month target price of Rs 427. It reiterated a ‘buy’ rating on HPCL.



Get access to India's fastest growing financial subscriptions service Moneycontrol Pro for as little as Rs 599 for first year. Use the code "GETPRO". Moneycontrol Pro offers you all the information you need for wealth creation including actionable investment ideas, independent research and insights & analysis For more information, check out the Moneycontrol website or mobile app.
First Published on Mar 24, 2015 03:36 pm
Loading...
Sections
Follow us on
Available On
Trusted By 1cr Families
Medlife Health Comes Home