rock bottom crude prices and commodities- which co.s benefit?

share your thoughts.

 

The lowering of crude prices would definitely positively impact the aviation and oil marketing companies.

However both sectors should be ignored now. Aviation, inspite of everything being favourable is still struggling and the oil marketing companies have already shot up too much.

 

parin omc and aviation will benefit directly. which ones get indirect benefits?
like say transportation- TCI etc.

 

I don't think logistics will be a big beneficiary with crude oil prices fall because diesel prices have not come down in sync with the reduction in the crude oil price.

Crude oil has fallen from $120 to $30 whereas diesel prices have fallen from around 62 bucks to 51 bucks only.

Only GST is going to be a game changer for the logistic sector now.

 

thats right in crude's case. who will be commodities price fall beneficiaries?
like steel, aluminium, iron ore, etc.
i think construction companies will benefit from low steel prices used for construction. and also auto sector. ashok leyland will definitely benefit. i also think that munjal showa which is making shock absorbers will also benefit. what are other ideas?

 

Construction companies are already debt ridden coupled with an increasing slowdown in property market. Even a decrease in steel and aluminium prices cannot uplift it easily. Demand has to kick in first. Among the construction companies I like only Godrej Properties and Oberoi. Trying to "discover" multibaggers in second and third tier construction companies can be harmful.

In case of auto sector, competition is a damage creator. Also, the budget may play a havoc. I too like Ashok Leyland. Its new product portfolio will give it an edge over TM. But I guess we should wait atLeast till budget before taking a call on the auto sector

 

ok. What do you think about munjal showa? will it benefit?

 

Sorry I don't track Munjal Showa. I remember once Guru Vachhal had recommended the stock. Maybe he will give you some insight about it.

 

According to experts crude oil is bottoming out. So, if you buy now it may result in backlash/ boomerang.

Oil has ‘definitely’ bottomed: Vedanta Resources

Definitely we are at the bottom, but in India a lot more has to happen. The (new) Modi government has come and people have a lot of expectations. The sense of urgency has come," Anil Agarwal, the group chairman of the London-listed commodities giant told CNBC on Friday from the World Economic Forum in Davos, Switzerland.

 

i am looking for companies benefitting from commodities price fall.

 

See point is whether commodity price will fall more or it will reverse and rise now. If prices are bottoming out, it means prices of commodities will rise. In such situation, we should buy stocks of commodities like ONGC, Selan, Hindalco because they will benefit from price rise. The other stocks like Aviation OMC etc will suffer then. So, you have to be clear of state of commodity cycle when taking bet otherwise you could be in soup.

 

my understanding is that commodities may not fall further but they may not go up also they will be in a range say for crude 40-50$ for near future.