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Oil India Share Price Target Raised by ICICI Securities; Stock Remains Top Pick — Here's Why

Oil India continues to build momentum across both core upstream as well as downstream segments, adds the brokerage.

Oil India Share Price Target Raised by ICICI Securities; Stock Remains Top Pick — Here's Why
Oil India remains ICICI Securities' top pick.
(Photo: NDTV Profit/ AI generated image)
STOCKS IN THIS STORY
Oil India Ltd.
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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.

Motilal Oswal Report

The brokerage firm ICICI Securities has raised its FY27E/FY28E earnings per share of Oil India Ltd. by ~4%/7% and introduce FY29E EPS of Rs  79.2.

The brokerage has maintaied a 'Buy' rating on the stock and has set a higher target price to Rs 600 from earlier Rs 545, implying a potential upside of 28% from the reports CMP of Rs 468. Oil India remains ICICI Securities'  top pick.

The brokrerage highlighted that the stock has outperformed the broader market in the last six and 12 months, and it sees the momentum sustaining, as delivery of the expansion plans at both the upstream and downstream segments comes to fruition over FY27–29E (introduce FY29E EPS of Rs 72.9 with this note).

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At its revised estimates (factoring in stronger production and revisions to gas realisation estimates), EPS CAGR over FY26 –29E is a robust 25%, with steady expansion in return ratios and FCF – dividend yield of ~4% is a bonus.

Alongside, valuations of ~6x FY29E EPS and ~4x EV/Ebitda offer material upside.

Key upside risks:

  • Stronger oil prices.
  • Higher gas production.
  • Stronger GRMs and higher petchem margins.

Key downside risks:

  • Execution delays for NRL.
  • Gas monetisation delays owing to infra delays.
  • Regulatory cha

Click on the attachment to read the full report:

Isec Oil India .pdf
VIEW DOCUMENT

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nges capping oil realisations.

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