A good comprehensive post indeed covering all aspects of the business of Indian Oil.
It is a undervalued stock and as of now the market is giving a low valuation for this stock mainly due to the risk as mentioned under your point no 9 – last point namely “Unwanted privatization can be a hindrance so is sovereign interference”.
The other risks as perceived by market is (a) volatility in crude oil price in international market which would affect its profitability as it imports crude. (b) Carbon intensive – any business involving carbon emission – market tends to give a low valuation (c) ,petrol-diesel being a source non-renewable energy and crude reserve are getting depleted day by day and by 2050 Oil reserve world over would get depleted. Mr market feels that Indian oil would be out of business.
However , market is yet to discount the fact that Indian oil and most other oil PSU in oil & gas space are actively participating in mitigating the risks a, b & c as mentioned above under Energy transition and Green fuel , sustainability,.
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