Green hydrogen, net zero, EV, AI, biofuels, renewables are themes that are fancied by investors. Many companies in small to very small market caps have seen their stocks getting crazy valuations just by being associated with such themes (regardless of fundamentals) due to several factors such as low liquidity, operator action etc
However for a large caps like Oil India such announcements don’t really mean much. Green hydrogen as a technology is in a very early stage with mass-scale economics yet to be proven.
We had L&T coming up with similar announcement last year which didn’t really excite market much. Stock did well purely because of excellent business performances in last few quarters.
So in the short-mid run Oil India’s stock will only react to commodity market trends and company’s performance in their core business, in my view.
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