Antique Stock Broking downgrades Oil India

MUMBAI: Antique Stock Broking has downgraded shares of Oil India to ‘hold’ from ‘buy’ with a target price of Rs 465 as the strength in crude oil prices has been factored in.

Oil India’s stock is factoring in the upside from upmove in crude oil prices post OPEC's decision to cut Production, whereas the risk to disciplined implementation of the same still remains, said Antique in a note on Friday.

“We downgrade OINL to a HOLD with a Mar'18 TP (target price) of Rs 465/share, as a) we doubt OPEC ability to influence price on sustainable basis and b) believe that OINL is factoring in a net realization of $55/bbl over FY18-19 and a net realization higher than that is less likely, irrespective of a higher benchmark price, on plausible higher subsidy payout,” said the brokerage.

On Friday, shares of Oil India ended down 0.4% at Rs 436.90 on the BSE. So far this year, shares of Oil India have gained 15.4%.