We looked at gold and real estate as investment option in the previous posts. This one talks about buying shares as investment options.
Currently, oil shares are starting to do well in the market.
ONGC (Oil and Natural Gas Corporation Ltd) has got a triple AAA stable rating by ICRA and ONGC is planning to raise money through non- convertible debenture to the extent of Rs. 5000 crores.
Why should you consider investing in ONGC?
Valuations of oil companies are going up and it is especially good for oil marketing companies like BPCL, HPCL.
A few months back, Brent Oil traded at $20 per barrel. But right now, it has risen to $43-$44 per barrel.
ONGC is a huge group and accounts for 62% of crude production in India and has around 75% of total natural gas production as of last year.
ONGC's operating profitability is huge on revenue basis and has a huge cash profit to pay the interest on the debts. They have a lot of liquid investments.
Valuations of oil companies are likely to go up.
Make a wise investment and see your money grow!
