Oil India Shares Jump 18% In Three Days Since Earnings
Emkay raises its estimates of the earnings per share by 18–19% for the current financial year till fiscal 2026.
The shares of Oil India Ltd. has gained 18.42% in the last three days with the shares hitting a fresh life high on Thursday.
The shares of Oil India continued their upward trend on Thursday with 12.04% jump and it hit a fresh life high of Rs 558.80. The shares fell over 9% on Monday but it gained over 6% on Wednesday and over 12% on Thursday.
The company announced its third-quarter earnings on Tuesday, with a 3.12% jump in its consolidated net profit on higher sales. The revenue also saw a rise of 3.16% at Rs 9,614.3 crore.
Oil India FY24 Earnings Highlights (Consolidated, YoY)
Revenue from operations rose 3.16% to Rs 9,614.3 crore.
Operating profit or Ebitda fell 17.57% to Rs 3,443.2 crore.
Ebitda margin narrowed 910 basis points to 35.81%.
Net profit rose 3.12% to Rs 2,607.7 crore.
After earnings, Emkay Global Financial Services hiked the target price on the Oil India stock.
The brokerage reiterated a 'buy' rating for the company with a price target of Rs 670 per share, implying a return potential of 34.33%. The 50% hike in the target price is on the back of strong delivery of the growth target and volume growth.
Here's What Emkay Says
Raises estimates of the earnings per share by 18–19% for the current financial year till fiscal 2026, raising its medium-term upstream estimates.
It takes note of projects like the Barauni–Guwahati, which is almost ready, and the IGGL Phase 1 from Guwahati to Numaligarh, which is also expected to be commissioned this year.
It also said that the NRL's expansion is comfortable and on schedule.
Oil prices and project-related issues are some of the key risks.
Oil India's shares rose as much as 14.39% during the day to Rs 570.50 apiece on the NSE. It was trading 13.68% higher at Rs 567 per share, compared to a 0.13% advance in the benchmark Nifty 50 at 11:15 a.m.
The total traded volume so far in the day stood at 5.2 times its 30-day average. The relative strength index was at 76 indicating it was overbought.
The share price has risen 20.73% in the last three days. It fell over 9% on Monday, but it gained 0.20% on Tuesday and over 6% on Wednesday.
Fifteen out of 18 analysts tracking the company have a 'buy' rating on the stock and three suggest a 'sell', according to Bloomberg data. The average of 12-month analyst price targets implies a potential upside of 139.9%.
