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ICICI Direct has buy call on Oil India with a target price of Rs 232. The current market price of Oil India Ltd. is Rs 161.6. Time period given by analyst is one year when Oil India Ltd. price can reach defined target.
Oil India Ltd., incorporated in the year 1959, is a Mid Cap company (having a market cap of Rs 17545.68 Crore) operating in Gas & Petroleum sector.
Financials
For the quarter ended 31-03-2021, the company reported a Consolidated Total Income of Rs 7193.40 Crore, up 220.25 % from last quarter Total Income of Rs 2246.20 Crore and up 116.85 % from last year same quarter Total Income of Rs 3317.29 Crore. Company reported net profit after tax of Rs 945.89 Crore in latest quarter.
Investment Rationale
High excise duty on auto fuels appears likely to continue for longer than expected and hence, an upside appears likely for subsidiary NRL’s GRM. Thus, based on latest oil and gas futures and NRL’s FY22E GRM at US$37/bbl (US$32/bbl in base case), the brokerage estimates 9% upside to OIL’s FY22E EPS and 4% to its FY23E EPS. Its valuation is also attractive.
Promoter/FII Holdings
Promoters held 56.7 per cent stake in the company as of June 30, 2021, while FIIs held 8.6 per cent, DIIs 18.5 per cent and public and others 16.3 per cent.
Oil India Ltd., incorporated in the year 1959, is a Mid Cap company (having a market cap of Rs 17545.68 Crore) operating in Gas & Petroleum sector.
Financials
For the quarter ended 31-03-2021, the company reported a Consolidated Total Income of Rs 7193.40 Crore, up 220.25 % from last quarter Total Income of Rs 2246.20 Crore and up 116.85 % from last year same quarter Total Income of Rs 3317.29 Crore. Company reported net profit after tax of Rs 945.89 Crore in latest quarter.
Investment Rationale
High excise duty on auto fuels appears likely to continue for longer than expected and hence, an upside appears likely for subsidiary NRL’s GRM. Thus, based on latest oil and gas futures and NRL’s FY22E GRM at US$37/bbl (US$32/bbl in base case), the brokerage estimates 9% upside to OIL’s FY22E EPS and 4% to its FY23E EPS. Its valuation is also attractive.
Promoter/FII Holdings
Promoters held 56.7 per cent stake in the company as of June 30, 2021, while FIIs held 8.6 per cent, DIIs 18.5 per cent and public and others 16.3 per cent.
(Disclaimer: Views and recommendations given in this section are the analysts' own and do not represent those of ETMarkets.com. Please consult your financial adviser before taking any position in the stock/s mentioned.
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