Tag: oil marketing companies (OMCs)

Positive on SBI, like BoB, SAIL, says Centrum Broking’s Nischal Maheshwari

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Nischal Maheshwari, CEO Institutional Equities and Advisory, Centrum Broking continues to be constructive on the market.

“Sooner or later, the demand/supply is going to match and we are going to see prices coming off on the commodity side. So we will wait to see that and that is why I continue to be constructive on the market,” he said.

Maheshwari has been positive on the State Bank of India (SBI).

“Incrementally we have to start looking at few more names as the corporate banking and the economy starts improving. Bank of Baroda (BoB) is another name which we like out there in this space. SBI still continues to remain favourite,” he mentioned.

Oil marketing companies (OMCs) have very good value, Maheshwari said.

“Steel Authority of India Ltd (SAIL) is another good stock out there. It is time to start looking at good quality second-tier banks. City Union Bank is our top favourite out there. DCB Bank, there are a good lot of banks in second-tier space.”

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Disclaimer: The views and investment tips expressed by investment experts on CNBCTV18.com are their own and not that of the website or its management. CNBCTV18.com advises users to check with certified experts before taking any investment decisions.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Elixir’s Dipan Mehta: Positive on RIL; prefer PI Industries over UPL

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Dipan Mehta, Director at Elixir Equities is positive on Reliance Industries Ltd (RIL) and said that the oil-to-telecom-to-retail conglomerate will start outperforming the markets.

“This stock will start to outperform the markets. Underlying fundamentals are improving, it benefits from rising crude oil prices and commodity price increases are going to benefit the oil-to-chemical (O2C) business. Positive on RIL and such corrections are good opportunities for investors who are underweight in RIL to get equal weight considering its massive weightage in the Sensex and Nifty.”

Within the agrochemical space, Mehta prefers PI Industries, a more focused business model that benefits from many cycles that are underway, over United Phosphorous Ltd (UPL).

“I would give UPL a pass. Within the agrochemical space, the best pick remains PI Industries. I would go with PI Industries rather than UPL.”

In terms of metal stocks, he said, “I would like to be a bit cautious as far as metals are concerned. You need to buy them when there is distress in the sector not when the sector is booming the way it is.”

The oil marketing companies (OMCs) like Hindustan Petroleum Corporation Ltd (HPCL), Bharat Petroleum Corporation Ltd (BPCL) and Indian Oil Corporation (IOC) are due for a trading rally.

“Any positive news flow on BPCL privatisation will have beneficial effects on the P/E multiples of IOC and HPCL. These are highly cyclical businesses and they are becoming more like utilities, the end of the day there is hardly any growth as far as OMCs are concerned because of the kind of growth in end product volume. So you could make a trading bet on it but certainly not great long-term portfolio stocks,” Mehta said.

Within non-banking financial companies (NBFCs), Bajaj Finance is a nice stable stock, he said.

“It is a good time to buy midcap stocks and microfinance companies and gold loan companies could outperform the overall NBFC basket,” Mehta added.

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Disclosure: Network18, the parent company of CNBCTV18.com, is controlled by Independent Media Trust, of which Reliance Industries is the sole beneficiary.

Disclaimer: The views and investment tips expressed by investment experts on CNBCTV18.com are their own and not that of the website or its management. CNBCTV18.com advises users to check with certified experts before taking any investment decisions.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Diesel crosses Rs 73-mark, petrol price nears Rs 83 in Delhi; in Mumbai petrol price is Rs 89.52/litre

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Diesel price on Friday crossed Rs 73 a litre mark in Delhi and petrol rate neared Rs 83 after 12th increase in the last fortnight. Petrol price was on Friday hiked by 20 paise per litre and diesel by 23 paise in line with the firming international oil rates, according to a price notification from oil marketing companies.

Petrol price in Delhi rose to Rs 82.86 per litre from Rs 82.66. Diesel rate went up from Rs 72.84 to Rs 73.07 per litre. This is the 12th increase in rates since November 20 when oil companies resumed daily price revision after a nearly two-month hiatus.

In 15 days, the petrol price has gone up by Rs 1.8 per litre and diesel rate has risen by Rs 2.61. Prior to the November 20 hike, petrol price had been static since September 22 and diesel rate hadn’t changed since October 2.

Public sector oil marketing companies – Indian Oil Corporation, Bharat Petroleum Corporation Ltd and Hindustan Petroleum Corporation Ltd – revise rates of petrol and diesel daily based on benchmark international oil price and foreign exchange rate. They have, however, resorted to calibrating the rates since the pandemic broke out with a view to avoiding volatility in retail prices.

The 58-day hiatus in petrol price revision and 48-day status quo on diesel rate were preceded by no change in rates between June 30 and August 15 and an 85-day status quo between March 17 and June 6. In Mumbai, the petrol price on Friday was raised to Rs 89.52 per litre from Rs 89.33, while diesel rate went up from Rs 79.42 to Rs 79.66.

Rates vary from state to state depending on the incidence of local sales tax or VAT.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Expect marketing, refining volume of oil firms to fall 15% in FY21: Fitch Ratings

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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With coronavirus lockdowns pummelling fuel demand in India, Fitch Ratings expects the marketing and refining volume of state-owned oil firms to fall by more than 15 percent in the current fiscal year before a gradual recovery in 2021-22. ”Pent-up demand and the upcoming festival season may support fuel sales in 3QFY21 (October-December), but a sustainable recovery would be subject to risks from the continuing spread of the coronavirus hindering mobility and economic activity,” Fitch said in a note.

India’s fuel demand recovered sharply in June from April before slowing due to the reimposition of restrictions in certain cities because of coronavirus and flooding in some regions. Fitch expects gross refining margins (GRMs) to remain under pressure from weak product demand and crack spreads in the near term until the global economy recovers significantly from the coronavirus crisis.

”We expect the FY21 marketing margins of oil marketing companies (OMCs) to widen from FY20, driven by exceptionally high margins in 1QFY21 when the fall in crude oil prices was not fully passed on to consumers and prices rose to partly cover investments to comply with new emission standards,” it said. It expected marketing margins to normalise from FY22 to below the FY21 level, but remain higher than that of FY20.

”The government may require OMCs to cut marketing margins to keep retail fuel prices affordable if crude oil prices continue to rise,” it said. ”However, state interference in fuel prices, if any, will have a bearing on its plans to divest Bharat Petroleum Corp Ltd (BPCL), which we believe will limit any drastic steps.” GRMs of BPCL, Indian Oil Corp (IOC), Hindustan Petroleum Corp Ltd (HPCL) and Reliance Industries Ltd fell sharply in April-June due to weak industry conditions and inventory losses.

”The FY21 profitability of upstream oil and gas companies like Oil India Ltd and Oil and Natural Gas Corp is likely to weaken on lower oil and gas prices and muted production growth, mitigated by a fall in oil price-linked statutory levies,” Fitch said.

The rating agency expected OMCs to defer and potentially re-evaluate the feasibility of large new refining projects in light of the uncertain industry outlook, while investments in marketing infrastructure would continue. ”However, upstream oil and gas companies may have less flexibility to cut capex due to mandated timelines for the completion of exploration work at oil blocks and India’s energy deficit,” it added.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Non-subsidised LPG rate hiked, aviation fuel ups by Rs 11,000/kl

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Oil marketing companies have hiked the prices of non-subsidised cooking gas and aviation turbine fuel with effect from Monday.

The price of the 14.2 kilogram cylinder of non-subsidised LPG gas in Delhi has been raised by Rs 11.50 from May to Rs 593 per cylinder.

In Kolkata, Mumbai and Chennai, the price of LPG has been raised at Rs 616, Rs 590.50 and Rs 606.50, against Rs 584.50, Rs 579 and Rs 569.50 per cylinder respectively. The highest increase was witnessed in Chennai with a hike of Rs 37 from the price in May.

The government currently subsidises 12 cylinders of 14.2 kilograms each per household in a year. Additional purchases have to be made at the market price.

In a statement on Sunday, Indian Oil Corp said that the retail selling price of LPG in Delhi market for the month of May 2020 was reduced from Rs 744 to Rs 581.50 per cylinder for all consumers in line with drop in International prices.

Also Read: Fuel prices hiked by Rs 2 per litre in Mumbai

“For the month of June, there has been an increase in International prices of LPG. Due to increase in the prices in international market, the RSP of LPG in Delhi market will be increased by Rs 11.50 per cylinder,” it said.

It however said that, this increase will not impact the Pradhan Mantri Ujjwala (PMUY) beneficiaries, as they are covered by the Pradhan Mantri Garib Kalyan Yojana, and entitled to a free cylinder till June 30.

Price of ATF in the national capital has been raised by Rs 11,030.62 to 33,575.37 per kilolitre, according to data on the Indian Oil Corp’s website.

Similarly, that in Kolkata, Mumbai and Chennai has been raised to Rs 38,543.48, Rs 3,070.56 and Rs 34,569.30 per kilolitre.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

OPEC says oil market undergoing ‘historic shock’

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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The OPEC oil cartel said Thursday that the world market for crude is undergoing an unprecedented shock due to coronavirus mitigation measures that have decimated demand.

“The oil market is currently undergoing a historic shock that is abrupt, extreme and at global scale,” said the group of producer nations in its latest monthly report.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Excise duty hike to impact volumes of OMCs; see a shift to CNG over 12-18 months, says IIFL

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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The government on March 14 increased the special excise duty on petrol and diesel by a Rs 2 per litre and road cess by Re 1 litre each.

Harshvardhan Dole of IIFL said,  over the next two quarters, there is going to be an issue in terms of demand particularly diesel. Diesel growth has been more or less flattish on a year-on-year (YoY) basis and that is going to be key.

Discussing the impact of this move on the oil  marketing companies (OMCs), he said they will try and pass on this increase. However, what it does is it makes the alternative fuels, like CNG, much cheaper. With the gas price cut in the offing from April 1, the attractiveness of CNG versus petrol will improve further. So there will definitely be a shift from petrol to CNG over the next 12-18 months which in a way will have an impact of volume growth on the OMCs,” he said.

“All the three OMC stocks, Hindustan Petroleum Corporation Ltd (HPCL), Bharat Petroleum Corporation Ltd (BPCL) and Indian Oil Corporation (IOC) are ridiculously cheap, completely bombed out and trading way below their respective book values. So, in every possible angle, they are cheap. We think fair value for BPCL is in the region of around Rs 500-550. HPCL on a normalised earnings deserves to trade around Rs 270-280 and IOC – considering the fact that it is one of the most defensive stocks in the sector – will lag HPCL and BPCL,” he added.

Speaking about Reliance Industries Ltd (RIL), Dole said, “One has to take a normalised call here and if you take a normalised scenario, one can definitely ascribe a value closer to about Rs 1,600-1,650 for the stock. That is mainly because the weakness in the commodity prices will get more or less offset by strength in Jio and Retail.”

“So, we have a strong buy call on RIL with the caveat that next two quarters are going to be quite challenging for the commodity business and to that extent, the stock will be quite volatile, said Dole.”

Disclosure: RIL, the promoter of Reliance Jio, also controls Network18, the parent company of CNBCTV18.com.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

On track to achieve full-year target of ethanol business, says Balrampur Chini Mills

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Balrampur Chini Mills performed poorly as its ethanol business disappointed. Pramod Patwari, CFO of Balrampur Chini Mills, told CNBC-TV18 that nothing has changed in the ethanol business as such, volumes vary in the quarter-on-quarter (QoQ) basis and in this particular quarter, there was some delay from the oil marketing companies (OMCs) for the regularisation of the new contract.

“However, whatever guidance we have given for the full year, we are on the track,” he said.

“We have already committed around 8.5 crore litre of ethanol in the first round and in the second round we are also committed, the outcome is yet to be announced.”

In terms of revenues, Patwari said: “As far as the revenue is concerned, I don’t think there is any pressure on quarterly basis. Sugar segment has delivered very good numbers. On account of export dispatches, we have dispatched around 9 lakh quintals of sugar. So on a QoQ basis, there has been an improvement in revenue.”

He added that finance cost is marginally higher because the company was carrying higher-level of inventory.

Balrampur Chini Mills is carrying an inventory of about 44 lakh quintal and – I don’t have the industry figures as of January 31, 2020.

But as of September 30, going forward, the industry would be carrying around 10 billion tonnes of inventory after considering an export of around 4-4.5 million tonne, according to him.

On recovery rate, he said recovery in Balrampur Chini Mills has been very good.

“If we adjust the impact of B Heavy diversion, we should be ending the year or the season with an improvement by 15-20 basis points (bps) in terms of recovery.”

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

29,000 is a good level to go long on Bank Nifty, says Gautam Shah of JM Financial

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Gautam Shah, associate director and technical analyst of JM Financial, spoke to CNBC-TV18 about market fundamentals and shared his outlook on Indian equities.

“From a medium-term perspective, the market continues to look very strong. It is just that near-term the indices seem to have got into recess mode and you cannot complain about it because let us understand that the Nifty had seen a 1,200 point rally from 10,600 to 11,800 in a matter of few weeks. Since it had happened so fast, without any major correction in between, at some point of time, the indices had to turn a little overbought and it did turn overbought around the 11,700-11,800 area and not only did it turn overbought but I think a lot of the weaker hands who did not get an opportunity to sell the market – the last September-October when we had got to 11,700-11,800 – I think that little bit of bout of profit booking led to this consolidation,” Shah said on Wednesday.

According to Shah, markets are likely to remain in consolidation mode for some more time. “You could see more price and time correction. However, I do believe that somewhere in the 11,400-11,500 band, this pullback should end and possibly as we get closer and closer to the important event of next month, the market is only creating a platform to start the next leg up and when that next leg upstarts, it should take the Nifty towards our working target of 12,222. So nothing changes from a bigger picture perspective, it is just that short-term things are slightly overbought even at this juncture. Another 50-150 points downmove from here would not surprise me but that is only going to be a buying opportunity because around 11,400 mark, I think the risk reward would once again be strongly justified to go along,” said Shah.

“Somewhere around 29,000 on the Bank Nifty would be justified to go fresh long once again and our bigger picture target for the banking index is about 32,500. So if you do get that index in this 29,000-29,500 band, I think that is a great risk-reward to play with for the next three-six months,” said Shah.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow