Gasping for breath

The country is literally gasping for breath. While those of us who are still negative, are fighting to breath good, unpolluted air but unfortunately, those who are currently positive, struggling with their oxygen levels, are worse off.

The shortage of oxygen, medical oxygen, needed to support Covid patients is so huge today that India is planning to float a tender for import of 50,000 metric tonnes of oxygen. What about local manufacturers? Needless to say, they are working at full capacity and every company which makes oxygen for their industrial use is also diverting it for medical usage now. Those making other industrial gases are also diverting all facility to making oxygen.

In India, the largest oxygen producer is the unlisted Inox Air, making 2000 tonnes per day currently and taking care of 60% of the country’s needs. But among listed oxygen or other gas makers, Linde India, National Oxygen, Bhagwati Gas, Refex, GFL Ltd are top picks. And these stocks have been hitting new highs over the past few days but beware as some are just riding the wave. Bhagwati Oxygen has very poor volumes, market cap is less than even Rs.5 crore and it had ended FY20 with a net loss of Rs.6 lakh.

And another big opportunity along with the oxygen are cylinder makers and there, the market leader is Everest Kanto Cylinder and then there is Mauria Udyog (blink an eye and you could read it as Maruti Udyog!). Confidence Petroleum is also in the limelight. All these stocks are moving so fast, they are gasping for breath!

The market is so focused on the word ‘oxygen’ that it does not seem to be too bothered about the company’s business. The stock – Bombay Oxygen Investments has been hitting the UC and new highs consistently. Currently, it has nothing to do with Oxygen apart from the word being in its name. It stopped manufacture and supply of industrial gases from 1st August, 2019 and its only business now is financial investment – its investments in the form of shares, mutual funds & other financial securities and the income from such financial investments is the source of revenue for the company.

That’s how the market is – every adversity is a profit-making opportunity, even a pandemic. Call such trading scavenging or whatever but the truth is that every trade is an opportunity – some we make during good times and some during bad times; ultimately the aim of every person in the market is to make money.

This is not a buy  or sell recommendation, while stock recommendations are provided exclusively to our paid members in the Member Zone.