OMCs are trading bets rather than fundamental bets: Emkay Global

In a chat with ET Now, Anish Damania, Head-Institutional Equity, Emkay Global Financial Services Ltd, shares his views on OMCs.

ET Now: What is the call on OMC basket?

Anish Damania: If you look at the OMC basket, BPCL has done extremely well whereas HPCL is the one which has taken that hit on its stock price. So if the stock price starts again coming lower let us say closer to 0.7-0.8 times price to book, I will be looking at that stock again. These are all trading bets rather than any fundamental bets because there is no clarity on how the whole mechanism is moving forward. For these companies to get substantially re-rated on a longer timeframe, then it will require the clarity in the regulatory mechanism to remain there for at least 1-1.5 years before anything can happen good to these stocks.