Crude Oil & Natural Gas · OINL
Oil Drilling & Exploration
from 468 today
Hollow marker shows the firm’s previous target.
Oil India continues to build momentum across both core upstream and downstream segments, with oil production on track to reach ~4mt in FY27 and gas output set to show exponential growth. We reiterate BUY with a revised target price of INR 600, keeping Oil India as our top pick.
We reiterate our Neutral rating on the stock and arrive at our SoTP-based TP of INR485, as we model a CAGR of 5.4%/8.1% in oil/gas production volume over FY26-28.
OINL reported a beat on EBITDA aided by 11.4% YoY growth in oil production volumes and higher crude oil realizations, partly offset by an 8.5% decline in gas production. Maintain Accumulate, valuing the standalone business at 10x FY28E Adj EPS and adding the value of investments in NRL and other JVs, we arrive at a TP of Rs511.
OIL India saw its EBITDA/PAT accelerate 2.1x/2.9x YoY to INR 43.3/INR 28.7bn, driven by higher oil and gas output, oil realisations and gas realisations. We upgrade to BUY and raise our TP to INR 545, supported by attractive valuations and a dividend yield of ~5.5%.
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