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Q.

Should I buy Indian oil corporation shares now ? pl help guide

About: Company: Indian Oil Corporation Ltd.

Tags: indian oil corporation shares, pl help guide
Asked by sheo mishra, 22 Jan '08 10:16 am
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Answers (1)

1.

Firstly IOC holds 16.45crores shares of ONCG which is valued at Rs. 16450 crores at an average price of Rs. 1000. While it also holds 2 cr shres of GAIL which is valued at Rs. 900 at an average price of Rs. 450. Apart from that they have a 10% stake in Haldia petrochemical making their total investments worth around 18000 crores. Which is 1/3 of their market cap. Besides this there is a lot of value which can be unlocked from Chennai Petroleum Corporation Ltd., IOC Sri Lanka and Mauritius.


Secondly oil price is on the decline from its current highs due to US recession fears, the talk Bush had with the Saudi Kind and as the rupee strengthens oil becomes cheaper to purchase for IOC. This will surely lessen the strain on the losses due to a subsidized fuel price.

Thirdly, Govt of India was expected to increase prices of petrol but is still in the decision making process. We all know Left and other parties will object to such a hike and thus the Govt will look at decreasing the ...more
Answered by Rajesh, 23 Jan '08 09:09 pm

 
  
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