Dipan Mehta sees value in oil marketing companies and power lenders, avoids Ola Electric

Dipan Mehta, Director at Elixir Equities, has shared his views across oil marketing companies (OMCs), power finance lenders, information technology (IT) services and select stocks, pointing to valuation gaps, earnings visibility and sector-specific risks.

Mehta said OMCs remain in focus as the government has been highlighting them as investment candidates on valuation grounds. He noted that the sector trades below global peers, with capacity expansion plans adding to earnings visibility. Referring to

BPCL, he said refinery expansion can support both refining and marketing margins. “If you want to lower the average P/E of your portfolio, this is one segment to look at,” he said, adding that dividends also support returns.

Also Read | Earnings growth may return to double digits in 2026 on tariff clarity, says LGT Wealth India CIO

Mehta said REC, PFC and IREDA offer opportunities due to improved management practices and controlled non-performing assets. He expects these stocks to respond when interest returns to mid-cap names and said earnings growth of 12–15% over the next two to three years can support returns, provided asset quality remains stable.

On Ola Electric, Mehta advised investors to stay away. “I don’t see any value picking at these levels,” he said, citing weak post-listing performance, competitive pressure and a long path to profitability. He added that the stock could be reviewed only if volumes rise materially.

Also Read | Quest Investment CIO stays cautious on IT, turns positive on banks and consumption

Mehta said he had been negative on IT services over the past few years due to limited scale-up of AI revenues, but his stance is turning constructive. He expects currency depreciation to support earnings once hedge impacts pass, and said large deal rollouts should aid growth. Commenting on management commentary from

TCS and Accenture, he said AI revenues are scaling faster than traditional lines. “These stocks are under-owned,” he said, adding that valuations, buybacks and governance provide support. He expects a trading rally in software services in 2026 and said pharmaceuticals could also benefit, especially if a US trade deal materialises.

For the full interview, watch the accompanying video

Catch all the latest updates from the stock market here