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Buy Oil India target of Rs 165: Sharekhan

Sharekhan is bullish on Oil India has recommended buy rating on the stock with a target price of Rs 165 in its research report dated February 11, 2020.

February 13, 2020 / 12:48 PM IST
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Sharekhan's research report on Oil India

Q3FY20 adjusted PAT of Rs. 401 crore (down 67.5% y-o-y) was substantially below our estimates due to a sharp miss in oil & gas sales volume, lower-than-expected other income and a higher-than-expected effective income tax rate. A sharp decline of 11% y-o-y in oil sales volume to 0.7 mmt and a fall of 7.4% y-o-y in gas sales volume to 0.6 bcm as production was affected by protests in Assam; net oil realisation stood at $63/bbl (marginally ahead of our estimate). We have cut our FY2020-FY2021 earnings estimates by 13%-23% to factor lower oil & gas realisation and sales volume.


We maintain our Buy rating on Oil India with a revised SoTP-based PT of Rs. 165 given an attractive valuation of 6.1x its FY22E EPS (29% discount to historical average one-year forward PE multiple) and a high dividend yield of 7-8%.

For all recommendations report, click here

Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on are their own, and not that of the website or its management. advises users to check with certified experts before taking any investment decisions.

Broker Research
first published: Feb 12, 2020 04:01 pm

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