Market Expert, Shahina Mukadam told CNBC-TV18, "Essar Oil has shown considerable amount of momentum in the last couple of days, in fact in a couple of weeks it has given 35 percent of return which is interesting. I think it is based on certain rumours doing the round that the Russian company is likely to take some equity stake and if that comes about - the promoters have low equity holding, it is about 26 percent, so it would result in an open offer and one can look at getting decent price."
"Considering the fact that the worst in terms of performance seems to be behind in terms of profitability that we saw in the last quarter because of fall in oil prices, going forward with stable gross refining margins (GRMs) which are high at around USD 10 - overall valuation does look expensive at current levels but the investor will do well to stay put, keep a stoploss of Rs 130, so in case the news developments do not pan out as expected then one should get out. I think one should hold," he added.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
