Bullish on the oil gas space: Forefront Capital Management

Radhika Gupta, director, Forefront Capital Management, in a chat with ET Now talks about oil and gas space.

What are you expecting from Reliance Industries this time around especially from the oil and gas space given the weightage it has on the index?

I think we are bullish on the oil gas space in general. I think rising commodity prices are coming so the oil and gas space is something to be excited about. Reliance Industries within that space is more representative on the index, more excited about smaller guys like MRPL in the energy space or ONGC which has got a strong domestic production story in oil than a Reliance Industries.

It’s really after a while that somebody is saying that he or she is bullish on MRPL, why so?

I think MRPL has a strong valuation story. It has been beaten down a little bit so the valuation story is good. It’s often ignored, it’s a smaller stock. The earnings from the last quarter were fairly reasonable. The profitability numbers were at least better than our expectations.