OIL India a 'neutral' bet, says Credit Suisse

Moneycontrol Bureau

Brokerage house Credit Suise has retained its ‘neutral’ rating on upstream oil firm OIL India after the fourth quarter numbers, saying the company will not benefit much from lower under-recoveries.

"Revenue was in line, while costs were meaningfully ahead, due to higher expenditure on provisions and support services," said the Credit Suisse note.

"Despite recent 'reforms,' it has been our base case that the government will retain most of the savings from lower under-recoveries. Management commentary on FY14 volumes point to 2% growth over FY12 levels; it appears that most volume growth could be behind," the Credit Suisse note said.