Bullish on BPCL,expect more from ONGC: Anish Damania

In a chat with ET Now,Anish Damania, Head-Institutional Equities, IDFC Securities, shares his views on Oil stocks.

ET Now: Do you think oil marketing stocks are a blind buy on every decline?

Anish Damania: Oil marketing companies do not take a large portion of the subsidies anyway the large portion of the subsidies has been taken by ONGC so if any fall in subsidy element comes through the biggest beneficiary is ONGC. In such a scenario I would look at ONGC more.

Also there are more upsides coming up in ONGC in the form of gas price increases, in the form of production increases as we go forward over the next two to three years so that is something.

Second on the oil marketing side the gains have already been achieved, the valuations have corrected now what one needs to look at is the efficiency of their assets so clearly in this case BPCL stands out where the efficiency of the assets is better.

So one should look at BPCL more in our view, we are bullish on BPCL but at the current market price probably we think that the upside are priced in but if there is some more room, go in for ONGC however.