OMC sctocks are expensive at the moment: Ambareesh Baliga

Ambareesh Baliga, VP Karvy Stock Broking Ltd. in an interview with ET Now talks about OMC stocks.

What is the call then on the entire OMC basket with crude almost nudging that 90 odd mark? Do you take a call based on that on counters like BPCL or Cairn which has direct correlation with the prices?

As far as the oil marketing companies are concerned especially after the petrol decontrol at that point of time we saw a major move in most of the stocks and we had said that the move is over. I do not see a further upside from here because the diesel decontrol is the next big trigger but that is already there in the price and I really do not know as to when that will happen.

You will not have a kerosene and LPG decontrol at least in the foreseeable future next couple of years. So unless these decontrols happen you really will not get the full valuation for the OMCs. With the total decontrol I think BPCL should be quoting at 1200 or 1300, you should HP quoting at around close to 900-1000 but without decontrols these stocks are still quite expensive at this point of time.