Oil And Gas - Outlook Improving For Oil India, Petronet LNG; Growth Faces A Hurdle At IGL: Motilal Oswal

Motilal Oswal Report

Oil India Ltd. remains a strong conviction Buy with the stock currently trading at 1.4 times FY25E price/book (standalone). It is a unique play to benefit from the strong multi-year upcycle in both upstream and refining sectors. The stock currently trades at a P/E multiple of 7.9 times FY25E earnings per share and six times FY25E enterprise /Ebitda.

We the stock at seven times December-25E standalone adjusted earnings per share and add investments to arrive at our target price of Rs 650. 

Petronet LNG Ltd. currently trades at a P/E multiple of 11.5 times FY25E EPS of Rs 23.1. We the stock at 12 times Dec’25E standalone adjusted EPS of Rs 24.6 and add investments to arrive at our target price of Rs 295.

Indraprastha Gas Ltd. stock currently trades at a P/E multiple of 16.7 times FY25E adjusted on a standalone basis. We the stock at 12 times Dec-25E adj. EPS of Rs 25 and add of joint venture at 25% holding company discount to arrive at our target price of Rs 350 and reiterate our Sell rating on the stock.

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