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Is it the right time to buy OMC stocks?

Oil marketing companies have hit a 52-week low on the back of hardening crude and rupee depreciation

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Published 3 years ago on Oct 04, 2018 2 minutes Read

Harshvardhan Dole, vice president, institutional equities, IIFL

There are multiple earnings drivers for oil marketing companies (OMCs) going forward. Despite the record prices of crude and other products, the consumption of petrol and other fuels is fairly strong. Auto fuels volume should see at least 5% growth each year and LPG consumption double that. Then, their margins are not under pressure anymore. Earlier when crude prices went up, the government used to ask these companies to absorb some amount of price increase. That has not been the ca

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