Buy Oil India, target price Rs 255: Emkay Global

Emkay Global has buy call on Oil India with a target price of Rs 255. The current market price of Oil India is Rs 191.65.
Time period given by analyst is one year when Oil India Ltd. price can reach defined target.

Oil India Ltd., incorporated in the year 1959, is a Mid Cap company (having a market cap of Rs 20950.71 Crore) operating in Gas & Petroleum sector.


Oil India Ltd. key Products/Revenue Segments include Oil Crude, Gas Natural, Other Operating Revenue, Income From Transportation Services, Renewable Energy System, Condensate and Income from OFC Fibre Leasing for the year ending 31-Mar-2019.

Financials
For the quarter ended 30-06-2021, the company reported a Consolidated Total Income of Rs 6276.58 Crore, down -12.75 % from last quarter Total Income of Rs 7193.40 Crore and up 233.88 % from last year same quarter Total Income of Rs 1879.89 Crore. Company reported net profit after tax of Rs 1036.82 Crore in latest quarter.

Investment Rationale
The brokerage bakes in USD65 Brent/4.5 APM for the long term and value S/A using DCF now. OIL should receive Rs13-15bn in annual dividends from NRL and IOCL in the next 5 years; these, if up-streamed, could result in a 45%+ payout and a 7% yield at CMP.

Promoter/FII Holdings
Promoters held 56.7 per cent stake in the company as of June 30, 2021, while FIIs held 8.5 per cent, DIIs 18.5 per cent and public and others 16.3 per cent.