Selan exploration holds few oil fields. It is in exploration activities. Oil price increase is beneficial for this stock. Buy this stock for steady gain in mid-term. The Company has signed Production Sharing Contracts with Government of India for Bakrol, Indrora, Lohar, Ognaj and Karjisan fields.
CMP: Rs 175
It has not gained much in recent rally but Oil price has gained almost 40%. Hoping for the rally to continue for some time here. Oil price increase will help in bottom line which was on decline due to lower price of oil. So, even if rally in the price do not sustain here and Oil price stay at this level then also it should post better profit in coming quarters. I do not know if the profit gain will start from the coming quarter or it will take one two quarters.
Budget was also good for these stocks:
- To incentivise gas production from deep sea & ultra deep waters;
- Cess on crude reduced from Rs 4500/MT to 20% ad valorem.
More info on Selan Exploration.