Posted by
surabhisharma on Apr 20th, 2010 in
Economy |
0 comments
Historically, Oil India Ltd. (OIL) has grown reasonably well compared to its peers and has shown its competitive advantage in the exploration and development of deep-seated thin reservoirs. We expect crude oil prices to remain around US$80/ barrel in near future, which does not pose any financial risk despite its share in subsidy burden. On the back of increased exploration and development activities, better...
Upstream Co: Positive
Downstream Co: Neutral
Gas Co: Positive
Q3 FY10 review: almost in line with our expectations
The Q3 FY10 results were broadly in line with our expectations. The upstream companies posted good profits during the quarter on account of higher average crude oil prices on YoY basis and higher GRMs. Commencement of Rajasthan field (Cairn India) and increased production in KG-D6 were the key...
Currently, I am positive on Oil and Gas sector. Keeping in mind the common man’ interest, we anticipate the partial implementation of Mr. Kirit Parikh ’s recommendations, which could lead to a re-rating of the entire sector. We expect a midway approach to these recommendations would improve the earnings visibility of OMCs and could lead the OMCs P/E to 17-19x from current 13.25x.
Considering the growing...
Crude Oil
I have a 15 years’ crude oil seasonal price chart. This chart says that from January to September, crude oil prices increase substantially, mainly because of the summer vacation-driving season. Then, in September- October, it becomes sluggish and then in the month of November- December, demand for crude oil weakens because of the reduction in driving and more moderate temperatures between the summer...
Now, when everyone is saying that Indian markets are over stretched and are trading on a higher P/E band, the hundred million dollar question is that will our markets be able to end the year on a positive note? At the current mark of 17,000, Sensex is trading at a P/E of 21. While comparing it with the historical average i.e. 16x, it surely looks expensive. But, this is on account of EPS of Sensex and Nifty, which...