Companies that benefit when oil slump

In Capital markets, whether dollar goes up or oil goes up or the reverse happens you will always find beneficiaries. Basically any event will have some beneficiaries. 

Companies which will benefit directly from falling crude oil prices are mainly upstream oil companies like ONGC, Oil India and less OMC's. These are the obvious gainers. Other big gainers would be paint companies like Asian Paints, Kansai, Berger and Shalimar as 25% of the raw material cose if from crude derivative and when price reduces, margin improves. Analysts say, 10% fall in crude oil prices will boost margins by 200bps. 

Another gainer will be tyre companies which uses crude derivatives in its raw material - infact it has double advantages of falling rubber prices too. Companies making plastics will also be beneficiary as cost of its crude oil polymer to make plastics comes down. Packaging costs will come down as it also uses petroleum derivative. FMCG and airline companies will also do well as falling crude will help better their balance sheets - a 10% fall in crude will lead to 300bps rise in EBITDA margins.