Buy Oil India Ltd., target Rs 450.0 : CLSA

CLSA has Buy call on Oil India Ltd. with a target price of Rs 450.0. The current market price of Oil India Ltd. is 398.0. Time period given by analyst is year, when Oil India Ltd. price can reach defined target. The global investment bank has built in lower cess, and recently announced monthly kerosene price hikes in their estimates to arrive at the new target price. Higher Brent crude prices of $48/60/bbl drive a 24.4/23.6% boost to the earnings per share (EPS). The Cess rate is effectively lower than our estimate, said the CLSA report. The global investment bank sees crude rebounding to $60 in the next 12 months.