Prabhudas Lilladher's research report on Oil India
We maintain our FY22-24E estimates, as OINL reported strong operational results in Q2 with consolidated EBIDTA/PAT of Rs23.1bn (+7%Q/Q) and Rs14.5bn (+20%Q/Q). Standalone performance was hit by dry well write off provisions (Rs5.9bn vs Rs273m in Q1) and EBIDTA/PAT was at Rs9.1bn (- 26%Q/Q PLe Rs12.4bn) and Rs5.1bn (flat Q/Q; PLe Rs5.6bn). We believe OINL’s earnings will ride on improving crude oil and gas realization, along with expansion of Numaligarh refinery (NRL) by 6MTPA (3MTPA capacity), which will increase consolidated FY25E EBIDTA by ~2.7x to Rs157bn.
Outlook
Maintain ‘BUY’ with TP of Rs351, based on 5x/EV/E FY23E and add value of investment in IOCL.
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