Oil India Ltd., incorporated in the year 1959, is a Mid Cap company (having a market cap of Rs 14303.30 Crore) operating in Gas & Petroleum sector.
Financials
For the quarter ended 31-12-2020, the company reported a Consolidated Total Income of Rs 2246.20 Crore, down -1.78 % from last quarter Total Income of Rs 2286.82 Crore and down -27.39 % from last year same quarter Total Income of Rs 3093.72 Crore. Company reported net profit after tax of Rs 696.01 Crore in latest quarter.
Investment Rationale
The target price of Rs205 implies 55% upside and is based on: 1) Brent at US$60/bbl in FY22-FY23E and in the long term; 2) gas price at US$2.5-3.1/mmbtu in FY22-FY23E (LT US$4/mmbtu); 3) NRL stake valuation at 3x FY21E EV/EBITDA (Rs82bn); and 4) Mozambique gas reserves at 0.67x valuation in last deal in the asset (US$400mn). OIL’s current share price reflects long-term Brent of just US$48/bbl (OIL’s realisation at US$47/bbl) vs current price of US$69/bbl.
Promoter/FII Holdings
Promoters held 56.7 per cent stake in the company as of Dec 31, 2020, while FIIs held 6.8 per cent, DIIs 19.5 per cent and public and others 17 per cent.
