OIL INDIA LTD

Oil India Ltd is engaged in exploration, development and production of crude oil and natural gas, transportation of crude oil and production of LPG. It also provides various E&P related services for oil blocks.

Key Business

• Crude Oil
• Natural Gas
• LPG
• Pipeline Transportation
• Renewable Energy

Shareholding Pattern

–PUBLIC GROUP

-PROMOTER GROUP

Financial Summary

Synopsis of Financials

• Q1 FY ’25 results showed a turnover increase of 25.73% to INR 5,840 crore compared to INR 4,645 crore in Q1 FY ’24.
• Crude oil production increased by 6.22% to 0.871 MMT in Q1 FY ’25 from 0.820 MMT in Q1 FY ’24.
• Natural gas production rose by 9.8% to 0.818 BCM in Q1 FY ’25 from 0.745 BCM in Q1 FY ’24.
• Average crude oil price realization was USD 84.89 per barrel in Q1 FY ’25, up by 10.46% from USD 76.85 per barrel in Q1 FY ’24.
• Average natural gas price remained unchanged at USD 6.5 per MMBtu.
• Profit after tax decreased to INR 1,467 crore in Q1 FY ’25 from INR 1,613 crore in Q1 FY ’24, attributed to increased SAED and statutory levies.
• Earnings per share for Q1 FY ’25 was INR 9.02, down from INR 9.92 in Q1 FY ’24.

Final Outlook

Oil India Limited (OIL) reported an adjusted EBITDA of INR 25.4 billion and a PAT of INR 20.3 billion for the quarter, reflecting year-over-year increases of 8% and 13%, respectively.

For the fiscal year 2024, OIL achieved a standalone EBITDA of INR 99 billion, remaining flat compared to the previous year, while PAT grew by 16% YoY to INR 79 billion.

This stock has the highest momentum in the industry, showing great short term buyer demand.

Analysts give it a Target Price of Rs. 755- Rs. 775, can be bought for short term investment perspective.

stock has shown great price performance over the past year, overall long term position should be determined after 1QFY25 performance because current metrics, including Piotroski Score give mixed implications

The company’s cash flow from operations has been consistently positive, often also showing decent operating profit margins.

The company has increased its fixed asset purchases for capacity expansion especially in NRL, and it is also expanding its pipeline production segment.

Based on these given metrics, we can see Oil India has one of the highest operating profit margins in the industry with a great debt to equity ratio for an asset heavy company that has recently taken on debt.

The PEG ratio is also below 1, as compared to its competitors, showing that the stock is undervalued relative to its expected growth.

Buy/Hold is recommended as per my view.