Sandeep Shah of Motilal Oswal Private Wealth Management is of the view that one may buy oil & gas stocks on corrections.
Sandeep Shah of Motilal Oswal Private Wealth Management told CNBC-TV18, "In oil & gas the structural story is clearly unfolding, it began sometime back when the UPA started with 50 paisa a month diesel price hikes and that is when the story really started."
He further added, "For the current level of oil prices and for the current level of almost zero diesel subsidies, stocks are perhaps partly priced that in. If you look at it from a long term perspective these are clearly the oil refinery and marketing companies, these are clearly oligopolistic business with just three players controlling more than 90-95 percent or 99 percent of market share. There are significant entry barriers in the urban space, when we saw Reliance and Essar get into setting up their own petrol pumps they were really focusing on highways because there has to be real estate available. So there is a significant entry barrier for this business."
"However at the same point of time it is unlikely that this sector will earn super normal profits because the products are fairly sensitive. So having said that valuations are still reasonable, there is a significant opportunity for return on equity (ROE) to expand significantly from here. As long as we have a global economy which is not accelerating dramatically I think oil prices will remain stable or at best in modest increases," Shah said.
He further said, "In this environment one should be looking for corrections to enter the stock. I agree with you that in the short term you might see more of a consolidation rather than a continuation of the run we have seen over the last few months."
Anda sedang membaca artikel tentang
Buy oil gas stocks on corrections: Sandeep Shah
Dengan url
http://remajantigalau.blogspot.com/2014/08/buy-oil-gas-stocks-on-corrections.html
Anda boleh menyebar luaskannya atau mengcopy paste-nya
Buy oil gas stocks on corrections: Sandeep Shah
namun jangan lupa untuk meletakkan link
Buy oil gas stocks on corrections: Sandeep Shah
sebagai sumbernya
0 komentar:
Posting Komentar