By Nandini Sanyal

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ETMarkets.com

RelatedGovt disappointed on state-run oil cos’ valuations by marketsIndia’s 2025 reform moment: Deregulation as the next growth catalystThe policy pivot: India’s strategic shift for 2047

Oil marketing companies (OMCs) may appear undervalued compared to their global peers, but investors should treat them more as trading opportunities rather than long-term bets, according to Ashi Anand, Founder & CEO of IME Capital.Speaking to ET Now, Anand said that while OMCs trade at a significant discount to international private players, the gap is largely due to the persistent risk of government intervention in fuel pricing. “Whenever oil prices move up significantly, fears of subsidies resurface. While we haven’t seen this for many years, the historical risk continues to weigh on valuations,” he explained.He pointed out that greater deregulation and clearer pricing frameworks would be key to any sustained rerating of OMC stocks. Anand recalled the 2002–2007 period, when the first major wave of deregulation created substantial value for the sector. However, he cautioned that despite recent improvements, long-term valuations remain uncertain due to the global shift towards renewable energy and lingering doubts about whether deregulation can hold during periods of oil price volatility.“Yes, there could be a play here, but not necessarily long-term. We really have to see what the eventual regulations are going to be. For now, OMCs are more of a short-term trading opportunity,” Anand said.Tariffs on electricals: Too risky without clarityLive EventsMORE STORIES FOR YOU✕Govt disappointed on state-run oil cos’ valuations by marketsIndia’s 2025 reform moment: Deregulation as the next growth catalystThe policy pivot: India’s strategic shift for 2047« Back to recommendation storiesI don’t want to see these stories becauseSUBMITOn the prospect of potential tariffs on electrical goods by the US, Anand warned that the situation remains too uncertain for investors to build positions with confidence.“Any trade that is based on a 0-1 event like Trump’s tariff decision is inherently risky. From a conservative stance, it’s better to wait for clarity on long-term business economics,” he said.Anand added that bargain hunters may step in if valuations fall steeply enough to factor in most of the downside, but cautioned against aggressive buying in the absence of policy certainty. “There are too many moving parts right now—import tariffs into the US, countermeasures from other countries, and India’s own tariff response. We recommend staying away until there is clarity,” he added.Add as a Reliable and Trusted News Source Add Now!
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(You can now subscribe to our ETMarkets WhatsApp channel)Read More News ontrading opportunitiesOMCsgovernment interventionfuel pricingrenewable energyderegulationelectrical goods tariffsimport tariffsIME Capitalashi anand(What’s moving Sensex and Nifty Track latest market news, stock tips, Budget 2025, Share Market on Budget 2025 and expert advice, on ETMarkets. Also, ETMarkets.com is now on Telegram. For fastest news alerts on financial markets, investment strategies and stocks alerts, subscribe to our Telegram feeds .) Subscribe to ET Prime and read the Economic Times ePaper Online.and Sensex Today. Top Trending Stocks: SBI Share Price, Axis Bank Share Price, HDFC Bank Share Price, Infosys Share Price, Wipro Share Price, NTPC Share Price…moreless

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