Despite profitability overhang, OMC stocks remain attractive bets

Analysts expect marketing margin concerns, most of which are already priced in, to recede after elections, and say valuations are now attractive

Stocks of oil marketing companies (OMCs) continue to remain volatile, thanks to the volatility in the underlying crude oil prices after US sanctions on Iran. The Brent crude now trades near $69.5 a barrel, up significantly from the $52 a barrel mark seen at the start of 2019. 

Accordingly, the Indian crude basket has also risen. The Indian crude basket is the weighted average of Dubai, Oman, and Brent crude oil prices. It is used as an indicator of the price of crude imports into India and the index is tracked for examining domestic fuel prices.

While the retail prices