Oil India - From Rooted Connections To Expansive Reach: Yes Securities

Yes Securities Report

Oil India Ltd. continues to advance its operational endeavors, boasting 58 E&P blocks domestically, alongside international projects spanning seven countries. With a significant equity stake in NRL, undergoing a capacity expansion from 3 million metric tonne to 9mmt, bolstering its regional presence. Despite challenges, including maintenance shutdowns and minor incidents, NRL achieved gross refining margin of over $13/barrel of oil, post expansion expects the opex to fall from $4.5/bbl to below three which would further uplift profitability of the company.

Committed to sustainability, Oil India aims to achieve net-zero emissions by 2040, reflecting its strategic direction towards becoming an integrated energy player.

In FY25, the company plans to invest Rs 69 billion to support its growth plans.

We maintain a Buy rating on Oil India, with a target price of Rs 820/share, and it remains our top pick in the space.

Our target price of Rs 820/share comprises-

1. Rs 566/share for the stand-alone domestic business, valued on 4.8 times EV/Ebitda FY26e,

2. Rs 174/share for NRL on EV/Ebitda of 7.5 times FY26e,

3. Rs 79/share for investment in listed equities, valued at 30% hold-co discount to market price.

Click on the attachment to read the full report:

DISCLAIMER

This report is authored by an external party. NDTV Profit does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of NDTV Profit.

Users have no license to copy, modify, or distribute the content without permission of the Original Owner.