Remain positive on oil marketing companies: Mehraboon Irani, Nirmal Bang Securities

In a chat with ET Now, Mehraboon Irani, Principal & Head- Pvt Client Group Business, Nirmal Bang Securities, shares his views on oil marketing companies. Excerpts:

ET Now: What do you do in the oil marketing companies?

Mehraboon Irani: On the whole I remain very positive.

ET Now: On EIL or on the oil marketing companies?

Mehraboon Irani: On the entire oil and gas space, I expect too much of activity happening. People have tried to point out that if oil having come down, not very remunerative, will exploration continue? We like the service providers in this. The service providers includes names like Alphageo and Dolphin Offshore. In some way or the other they will possibly get into business. I feel it is going to pick up.

There are interesting names coming back to the frontline. In the OMCs there could be a small lull in terms of valuation. There could be a small correction but this is the space to be in. In the front line names we like ONGC and Oil India. In the the oil marketing companies, we continue to BPCL. HPCL could possibly relatively outperform in the very short run.