Crude prices firming, Oil companies gaining

Oil Exploration sector is one of the six core industrial sectors in India, and influences all other economic sections of the country. We have analysed share performance of the Oil Exploration sector for last week, month and a year. With the firming in crude oil prices we see that Private sector companies among all have performed well, the top notch being Jindal Drilling & Industries Ltd., which gave returns of 24.87% over the last week and 27.68% for the month; followed by Dolphin Offshore Enterprises (India) Ltd., Deep Industries Ltd., Aban Offshore Ltd., and Hindustan Oil Exploration Company Ltd.

The market sentiment has improved for the Oil exploration companies, with International Brent crude futures trading at USD 47.02 per barrel, 70 percent higher than lows in January 2016. However, we see that for companies – Jindal Drilling, Dolphin offshore enterprises and Aban Offshore, the share prices are still below the levels seen last year.
Meanwhile, Deep Industries has given healthy returns over the span of 3 years with attractive P/E of 15.11, ROCE of 16.24 per cent and expectations of a good quarter.