OMC sotcks good long term bet: Avinash Gorakshekar, Anagram Capital Ltd

Avinash Gorakshekar, Head of Research, Anagram Capital Ltd, in a chat with ET Now talks about the oil marketing space.

Why so much of a pronounced disappointment today in the oil marketing space?

Some announcements today on some channels and some newspapers have made it very clear that diesel is not going to be deregulated very soon as everyone is aware that all these companies have been reporting lot of under recovery especially BPCL, HPCL and IOC. These stocks had actually run up quite significantly more on news and less on fundamentals because the under recovery number currently which the government has announced is roughly about 52000 odd crores.

So our sense is that typically these are all value picks provided the investor takes a longer term call. Today, primarily I think there has been selling because everyone was expecting the diesel deregulation also to happen pretty soon after the petrol announcement. So I think it’s a short term blip. But longer term there is definitely good value. I mean, one should look at a medium term perspective when one looks at these stocks.