Well, I am based in the middle east and consult oil and gas companies globally (have been in this industry for last 25 years) so I was giving you a first hand opinion about state of affairs but yes I am not that smart to contest some of these forecasts.
I dread what’s going to happen if oil runs out in 50 years. People who understand this industry through websites don’t know that oil and gas don’t just run our cars or planes or plants. 70-80% of the items we use or consume in our day-to-day lives have some oil and gas linkages. So I really hope our scientists find some substitutes for the sake of our kids.
Anyway, coming to main topic, not sure if I agree that Tata Power, Adani Group energy companies, RIL and L&T stocks have gone nowhere. On a 5 year basis they are all 2-10x (better than any energy PSU stock). Valuation wise even PSUs are not cheap anymore an they are all trading far above their historical multiples.
But may be you are right and may be this time PSU companies have turned the corner. Narrative looks very promising (although I have lived long enough to hear the same many years ago only to be disappointed) so I sincerely wish all the best to investors who are betting big on them.
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