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Another sector that is going through a transformation: 6 energy stocks which can give more than 18% return in one year.

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Synopsis

In the last one month, there has been more sectoral rotation than probably one would have seen in the last one year. The reason is, some of the sectors which have been going through structural changes and a number of them are close to a point where either companies should produce results or they would disappoint. Take the case of auto, and a year back they were close to the same inflection point. One year later as they launch their EV’s they are being re-rated. In the case of energy companies, because the transformation is different and is much more basic in nature which requires more capex, it is going to take time. Hence the expectation of a similar reaction on the street should not be expected, but there is another side to it, it would be a more sustainable change on a much bigger balance sheet and long runway of growth.

While structural transformation in the auto sector is much talked about and given credit by the street. The fact is that the energy sector as a whole has been quietly going under a transformation. While many would not have realized that large companies which are in the energy space, whether it be oil market and refining companies or any other, they have been forming joint ventures or subsidiaries to get into new energy areas. Even when elections

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