Why IndianOil could be Dalal Street's favourite OMC stock
New Delhi   03-Jan-2017



ET Intelligence Group: Indian OilBSE 6.02 %, the country's largest oil marketing company (OMC), may emerge as a top pick among OMCs in 2017 given expectations of higher ear nings surprise once its 15-million tonnes per annum (MTPA) Paradip refinery achieves full utilisation in March 2017.

The Paradip refinery is likely to match RILBSE 0.64 %'s gross refining margin (GRM), thereby improving the margin profile of Indian Oil (IOC).

At the end of the September 2016 quarter,Paradip refinery was oper ating at 43% of its total capacity. Several factors make the refinery an important catalyst in IOC's future growth. Its operating matrix is quite similar to Reliance IndustriesBSE 0.72 %' refinery, which delivers a superior GRM.

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