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Last Updated : Jul 01, 2020 10:45 AM IST | Source: Moneycontrol.com

Buy Oil India target of Rs 115: Sharekhan

Sharekhan is bullish on Oil India has recommended buy rating on the stock with a target price of Rs 115 in its research report dated June 29, 2020.

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Sharekhan's research report on Oil India


Q4FY2020 adjusted PAT of Rs. 502 crore (down 38.6% y-o-y) was above our estimate as higher-than-expected other income and lower-than-expected DD&A cost was partially offset by miss in gas sales volume and higher operating expenses. Oil sales volume at 0.75mmt (down 3.7% y-o-y; up 3% q-o-q) was in-line with estimates and net oil realisation at $52.2/bbl (down 15.5% y-o-y; down 17.5% q-o-q) was marginally above our expectation at $50.8/bbl. The management has guided for flat y-o-y oil and gas production in FY2021 and has guided for capex of Rs. 3,875 crore for FY2021E and Rs. 4,000 crore-4,200 crore for FY2022E.



Outlook


We maintain our Buy rating on Oil India Limited with an unchanged SoTP-based PT of Rs. 115, given an attractive valuation of 4.6x its FY2022E EPS (46% discount to historical average one-year forward PE multiple) and high dividend yield of 9-10%.





For all recommendations report, click here

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First Published on Jul 1, 2020 10:45 am
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