in virtually every financial, operational, organisational and structural parameter.
Both companies command about 20 % each of the total petroleum market in India. Both market comparable quantities of fuels, lubricants and other products such as bitumen. Both are equally burdened by fuel subsidies and both are re-imbursed for the same (inadequately that is) in equal measure by the govt. in the form of oil bonds and sharing of burden by upstream companies such as ONGC. Both have similar management structures and the same mode of executive selection and appointments.
The two companies have comparable equity sizes (HPCL 340 crores and BPCL 310 crores) and comparable patterns of equity ownership. Both are controlled in a similar manner by the govt. nominee directors as well as by their own functional directors.
Yet (and a very large yet it is indeed), BPCL quotes at around Rs. 670/- per share while HPCL lags far behind with just 360/- per share !
DONT talk about subsidy given by govt. Those harassing clowns charge hefty tax as part of petrol! Remove the tax and the cost comes down!
Its unfair for government to say they subsidized petrol, remove tax on it. Already we are paying tax on our income, then comes service tax (on phones, broadband....goes on) and again government adds tax to petrol and show us that cost has increased.
Remove tax from petrol and the cost comes down Governement taxes us many times! They tax on what we earn and then again they tax us on what we spend!!
After reading the article, observed that it is not relevant with, wht happening in stock market. Mkt never runs on economics etc. One of the reason to publish the article may be - some courses like Certified Fin Analyst asks student/practising CFA to publish specific number of articles in media. Main purpose behind this to complete the requirements.
Author pretends to write a big principle of Economics and trying to relate it to Stock Market. Only a beginner both in Economics and Stock Market can write such a 'big' thing. First he has to understand that the stock market is driven only on news & sentiments and not on economics. Increase in fuel prices will be leaked out to the big players in the market and they will accumulate the share of OMCs... and when poor retail investor buy on belief of benefits to the OMCs, the real players book the profits. Next day, when OMCs again cry on under recoveries and expected loss, the share price falls again. There is absolutely no economics working in stock market in short to medium term. It's always better not to follow the news or short term trend. Just go against the flow and accumulate the beaten down shares to get good returns in 2-3 years
THIS IS CRAP...........media is not speaking anything about the black money because they happy licking the congress bum. but they want to charge us. shower this up to ur A-----
