Moneycontrol
Last Updated : Jul 01, 2020 10:42 AM IST | Source: Moneycontrol.com

Hold OIL India; target of Rs 95: Emkay Global Financial

Emkay Global Financial recommended hold rating on OIL India with a target price of Rs 95 in its research report dated June 29, 2020.

Broker Research @moneycontrolcom
 
 
live
  • bselive
  • nselive
Volume
Todays L/H
More

Emkay Global Financial's report on OIL India


Oil India reported Q4FY20 standalone revenue/EBITDA loss/PAT of Rs25.9bn/11.0bn/9.26bn. EBITDA was impacted by ~Rs15bn of exceptional provision and impairment coupled with Rs3.2bn of forex loss. OIL moved to the new lower tax rate. Crude oil (incl. JV, condensate) production fell 3% yoy (up 1% qoq) at 0.76mmt, while gas fell 8% yoy/qoq to 0.65bcm. LPG output increased by 23% qoq to 8.5kt (down 8% yoy). Gas sales/production fell from 87% to 83% qoq vs. flat last fiscal. Nominated Block crude realization fell 18% qoq to USD52.2/bbl, with premium to Brent at USD1.6/bbl (vs. USD0.7 in Q3). Gas realization was flat. Depletion fell 80% yoy/qoq due to 1P reserve revision. Other Income included Rs3.2bn of income tax refund interest.



Outlook


We raise FY21/22E EPS by 10%/1% on low future provisions and tax rate. However, due to higher debt and lower investment value, we reduce the FY22E-based TP by 5% to Rs95. Maintain Hold and UW in EAP. Gas pricing reforms and output recovery are key triggers.





For all recommendations report, click here

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

First Published on Jul 1, 2020 10:42 am
Sections