Shares of Oil India Limited surged 3 percent to Rs 571 in morning trade on July 23, a day after the company signed an agreement with Norway’s Dolphin Drilling Limited for the hiring of the "Anchor Moored Semi-Submersible Drilling Unit Blackford Dolphin". The company is a leading contractor for the offshore oil and gas industry.
At about 9:20 am, shares of the company were trading at Rs 570, up 2.5 percent from the last close on the NSE. The Oil India stock is on an astronomical run, rallying 124 percent since the start of the year. Its one-year returns are 223 percent.
Follow our LIVE stock market blog for all the latest updates
Last week, international brokerage Morgan Stanley said that the company is underappreciated. This is because the profit of the most profitable fuel refinery in Asia has tripled in four years, while gas production has doubled. Oil India also has 38 years of hydrocarbon reserve life monetisation and 14 percent CAGR in operating cash flow.
Follow our LIVE budget blog for all the latest updates
According to the brokerage, Oil India's achievements are noteworthy, with metrics projected to be met within four years at single-digit multiples. A significant factor is the 20 percent increase in gas ASP over the years, bolstered by new wells extending growth.
Despite its strong dividend distribution and expected doubling of earnings by 2029, Oil India's potential remains underappreciated by the market.
Disclaimer: The views and investment tips expressed by investment experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
