Hindustan Oil Exploration - Undergoing A Strategic Shift: Motilal Oswal

BQ Prime’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BQ Prime’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..Motilal Oswal Report.We met with Mr. Ramasamy Jeevanandam, Chief Executive Officer of Hindustan Oil Exploration Company Ltd., on Dec 01, 2023. Hindustan Oil Exploration is a play in the upstream sub-sector within the oil and gas sector, which is seeing a multi-year upcycle (as we noted in our report) after nearly eight years of under-investment globally. Hindustan Oil Exploration management highlighted the following positive factors: the company is transitioning from a single-asset to a multi-asset growth strategy;the management remains confident of doubling the production in the next three-four years from a primarily low-cost reserve base (opex: $5-8/barrel of oil);operating cash flow has improved significantly after the start of the B-80 asset (partially operating) in May 2022;the company has engaged Baker Hughes to resolve production issues at the B-80 asset. Hindustan Oil Exploration (not covered) trades at FY23 price-to-earning of 13.2 times.Our top picks in the oil and gas sector remain Oil and Natural Gas Corporation Ltd. and Oil India Ltd. For oil and gas companies, we believe the key risks are volatility, a sharp decline in oil prices and execution issues related to production volume..Click on the attachment to read the full report:.Promoter Entity Warburg Pincus Exits CAMS With Four Times Returns.DISCLAIMERThis report is authored by an external party. BQ Prime does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of BQ Prime..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

Hindustan Oil Exploration - Undergoing A Strategic Shift: Motilal Oswal

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