IOC and Gail safe bet to buy: Siddharth Sedani
The way company is placed in terms of their valuations and the way we are getting re-ratings all across, company looks very promising.
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| Siddharth Sedani, Sr. Manager (Portfolio Management Services), Microsec Capital Ltd., in an interview with ET Now talks about IOC, GAIL India.
How do these stocks look, likes of IOC, GAIL India?
We are quite overweight on both the stocks especially IOC which is a big brother of the downstream sector, is planning for a disinvestment of 10% and definitely they have 47000 crore plan of expansion for FY11 for their refining and pipeline expansions. The way company is placed in terms of their valuations and the way we are getting re-ratings all across, company looks very promising and if you just look at into the balance sheets, the net block is quite strong the way company has a cross holding investments in ONGC. IOC looks to be a very safer bet right now and has to be there in the portfolio because there is definitely a turnaround which we have observed in recent past. So IOC is looking good. In terms of GAIL which has 71% market share in terms of transit of total gas transited in India and in terms of their expansions, right now they have 150 mmscmd of gas transit. They are expecting a double side transit going forward in 2 to 3 years. So GAIL is also looking good but if you compare both the stocks, IOC looks much better promising bet.
How do these stocks look, likes of IOC, GAIL India?
We are quite overweight on both the stocks especially IOC which is a big brother of the downstream sector, is planning for a disinvestment of 10% and definitely they have 47000 crore plan of expansion for FY11 for their refining and pipeline expansions. The way company is placed in terms of their valuations and the way we are getting re-ratings all across, company looks very promising and if you just look at into the balance sheets, the net block is quite strong the way company has a cross holding investments in ONGC. IOC looks to be a very safer bet right now and has to be there in the portfolio because there is definitely a turnaround which we have observed in recent past. So IOC is looking good. In terms of GAIL which has 71% market share in terms of transit of total gas transited in India and in terms of their expansions, right now they have 150 mmscmd of gas transit. They are expecting a double side transit going forward in 2 to 3 years. So GAIL is also looking good but if you compare both the stocks, IOC looks much better promising bet.
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