Oil India Ltd (OIL) is a large-cap firm with a market capitalization of ₹32,239 crore that operates within the Fuel & Petroleum trade. It’s a government-owned enterprise with Navratna standing below the executive supervision of the Ministry of Petroleum and Pure Fuel. On the NSE, OIL shares opened at this time at ₹280.30 and reached a brand new all-time excessive of ₹306.00. The inventory’s earlier 52-week excessive was ₹301.20, set on 07-Jun-2022. The shares’ commerce quantity at this time was 28,835,734, and after reaching a brand new 52-week excessive of ₹306 on each the BSE and the NSE, the inventory at this time outperformed the sector by greater than 3%. On the BSE, the shares of Oil India have risen from ₹140.65 to the newest buying and selling worth of ₹297.15, representing a multibagger acquire of 111.27 per cent in a single yr, surpassing the Sensex by 105.5 per cent. On a year-to-date (YTD) foundation, Oil India shares have risen by 49.70 per cent in comparison with a 6.53 per cent decline within the Sensex thus far in 2022, outperforming the Sensex by 43 per cent.
Primarily based on a brand new 52-week excessive of ₹306 as of ninth June 2022 and a 52-week low of ₹139.40 as of tenth June 2021, the inventory is now buying and selling 2.54 per cent beneath its 52-week excessive and 113 per cent above its 52-week low at ₹298.20 and its present stage is an upside hole of 6.48% from its earlier shut of ₹280.05. The corporate’s Board of Administrators has proposed a ultimate dividend of ₹5/- per share for the fiscal yr 2021-22, topic to shareholder approval. So, ought to one purchase the inventory proper now? Let’s examine what totally different brokerage companies should say.
The brokerage agency Prabhudas Lilladher has stated in a observe that Oil India is properly positioned to profit from rising oil and gasoline costs and excessive GRMs and FY25E EBIDTA can improve to Rs210bn (FY22-Rs105bn) on greater volumes. The brokerage has maintained a purchase score on the inventory with a goal worth of ₹344 per share.
The brokerage firm Sharekhan has stated in a report that “The current sharp surge in crude oil costs and expectation of additional steep hike in home gasoline costs from October 2022 would drive an 11% CAGR in OIL’s standalone PAT over FY2022-FY2024E and enhance RoE to 14.3%. Furthermore, the current stake improve in Numaligarh Refinery Ltd (NRL) might create long-term worth for OIL. Therefore, we preserve a Purchase score with an unchanged SoTP-based PT of Rs. 290.”
The views and suggestions made above are these of particular person analysts or broking firms, and never of Mint.
Supply: Live Mint