Buy Oil India, target price Rs 300: Axis Securities

Axis Securities has buy call on Oil India with a target price of Rs 300. The current market price of Oil India is Rs 257.95. Axis Securities recommended to keep stop loss at Rs 233.

Oil India, incorporated in the year 1959, is a Mid Cap company (having a market cap of Rs 27977.65 Crore) operating in Gas & Petroleum sector.

Oil India key Products/Revenue Segments include Oil Crude, Gas Natural, Income From Transportation Services, Other Operating Revenue, Renewable Energy System and Condensate for the year ending 31-Mar-2022.


Financials
For the quarter ended 31-12-2022, the company has reported a Consolidated Total Income of Rs 10712.11 Crore, up 24.58 % from last quarter Total Income of Rs 8598.85 Crore and up 31.23 % from last year same quarter Total Income of Rs 8162.56 Crore. Company has reported net profit after tax of Rs 2799.95 Crore in latest quarter.

The company’s top management includes Dr.Ranjit Rath, Mr.Harish Madhav, Mr.Pankaj Kumar Goswami, Dr.Manas Kumar Sharma, Ms.Pooja Suri, Mr.Raju Revanakar, Mr.Samik Bhattacharya, Mr.Vinod Seshan, Ms.Mamta. Company has V Singhi & Associates as its auditors. As on 31-12-2022, the company has a total of 108 Crore shares outstanding.

Investment Rationale
OIL on the weekly chart has decisively broken out above the “Cup and Handle pattern ” formation indicating positive bias. The breakout is accompanied with an increase in volume confirming participation at breakout level.

Promoter/FII Holdings
Promoters held 56.66 per cent stake in the company as of 31-Dec-2022, while FIIs owned 11.52 per cent, DIIs 16.04 per cent.