Buy Oil India, target price Rs 305: Emkay Global

Emkay Global has buy call on Oil India Ltd. with a target price of Rs 305. The current market price of Oil India Ltd. is Rs 262.75.

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 28595.76 Crore) operating in Gas & Petroleum sector.


Oil India Ltd. key Products/Revenue Segments include Oil Crude, Gas Natural, Income From Transportation Services, Other Operating Revenue, Renewable Energy System, Condensate and Income from OFC Fibre Leasing for the year ending 31-Mar-2021.


Financials
For the quarter ended 31-03-2022, the company reported a Consolidated Total Income of Rs 9294.52 Crore, up 13.87 % from last quarter Total Income of Rs 8162.56 Crore and up 29.21 % from last year same quarter Total Income of Rs 7193.40 Crore. Company reported net profit after tax of Rs 2909.79 Crore in latest quarter.

Investment Rationale
The brokerage lowers FY23E/24E EPS by 13%/14%, factoring in higher opex and revenue realignment. Accordingly, it lowers DCF-SOTP based TP by 9% to Rs 305, factoring in lower dividends from NRL due to capex.

Promoter/FII Holdings
Promoters held 56.66 per cent stake in the company as of 31-Mar-2022, while FIIs owned 11.23 per cent, DIIs 16.84 per cent.