LarryWink
Our thought process remains the same ! Modi 3 would continue to focus on PSU performance after having succeeded in turning around many PSU’s during last 4-5 years.
During Modi 2, the opinions were divided on PSU’s, though the market gave a Re-rating to all PSU’s.
Coming to oil & Gas sector, all the 3 upstream companies like Oil india , ONGC and GAIL have heavy Capex plans with focus on renewables apart from their traditional O& G business. GAIL is also expanding its petrochemical business with a huge Ethane cracking plant @60k crore which would produce ethylene - a raw material for petrochemicals.
The down stream companies like OMC’,s are also in the process of implementing Green energy projects…A few years back BPCL was to be privatised …in fact many foreign companies were asked to bid.
Today , The govt has said BPCL would not be sold. It is a Cash cow now. All the OMC’s are heavily investing into green hydrogen and expanding capacity.
All these companies are trading at attractive valuation with good dividend yield. In fact as I had entered at 9-10% dividend yield , i continue to get the dividend yield even after 2X capital appreciation. Manish Santhalia has rightly explained this in a post
Discl : Invested at lower level. may be biased. not a buy sell recommendation. PSU stocks are subject to Govt policy changes and stock price volatility. Please do your own assessment before investing
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