Energy: What the Government giveth, the Government taketh away :: Kotak Securities PDF link

Please Share::  India Equity Research Reports, IPO and Stock News
Visit http://indiaer.blogspot.com/ for complete details �� ��

http://www.kotaksecurities.com/pdf/indiadaily/indiadaily19032012.pdf


Energy
India
What the Government giveth, the Government taketh away. The Government’s
decision to provide `850 bn of compensation to downstream oil companies for FY2012
is a positive for GAIL, OIL and ONGC as it implies a subsidy burden of ~38%. However,
the proposed increase in cess on crude oil is a negative for future earnings of Cairn, OIL
and ONGC. We maintain our BUY rating on ONGC/OIL, ADD on GAIL and SELL on
Cairn India.