Buy Oil India, target price Rs 270: Emkay Global

Emkay Global has buy call on Oil India Ltd. with a target price of Rs 270. The current market price of Oil India Ltd. is Rs 196.4.

Oil India Ltd., incorporated in the year 1959, is a Mid Cap company (having a market cap of Rs 21286.87 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 and Condensate for the year ending 31-Mar-2022.


Financials
For the quarter ended 30-09-2022, the company reported a Consolidated Total Income of Rs 8598.85 Crore, down -26.16 % from last quarter Total Income of Rs 11645.49 Crore and up 15.89 % from last year same quarter Total Income of Rs 7420.13 Crore. Company reported net profit after tax of Rs 1728.50 Crore in latest quarter.

Investment Rationale
The brokerage values OIL on an SOTP basis, comprising standalone (using DCF) and NRL (DDM). Investments are valued at TP or CMP, with a 30% Holdco discount. Key risks: Adverse oil-gas prices, policy issues, local tensions, cost overruns, outages, and dry holes.

Promoter/FII Holdings
Promoters held 56.66 per cent stake in the company as of 30-Sep-2022, while FIIs owned 12.42 per cent, DIIs 15.37 per cent.