Citi has noted that the recent correction in the stocks of oil marketing companies (OMCs) following weak Q2 earnings offers a favorable re-entry point for investors. The brokerage highlighted that the weak Q2 results were driven largely by non-recurring factors, making the recent correction an opportunity rather than a sign of persistent underperformance.
Citi remains constructive on OMCs, not only on an absolute basis but also in comparison to upstream state-owned enterprises (SOEs) like ONGC. The favorable risk/reward balance, following the recent pullback, enhances the attractiveness of OMC stocks for long-term investors, according to Citi’s analysis.
Disclaimer: This article is for informational purposes only and does not constitute financial advice. Please consult with a financial advisor before making any investment decisions.
