'Buy' Indian Oil Shares Maintains ICICI Securities On Positive Outlook, Comfortable Valuation

NDTV Profit’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer NDTV Profit’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.

ICICI Securities Report

Driven by the 15% drop in the stock price in past 12 months, the stock currently trades at an attractive 8.4x FY27E PER, 0.9x FY27E price-to-book value and 6.4x EV/Ebitda.

Our SoTPbased valuation, assigning an EV/Ebitda multiple of 5.5x (FY28E) to consolidated Ebitda and valuing its listed investments at current market price, delivers a fair value of Rs 170, ~17% upside (from current market price). Maintain Buy.

Key downside risks:

1. Sharper-than-expected fall in gross refining margins;

2. sharper rise in crude prices; and

3. capex delays and execution challenges.

Key upside risks:

1. Fall in crude prices;

2. improvement in refining margins; and

3. stronger fuel consumption growth and petchem demand growth in India.

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.