Oil India Q3 Results Review - Production Outlook Remains Robust Going Forward: Motilal Oswal

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.Oil India Ltd. reported an Ebitda of Rs 21.1 billion in Q3 FY24, which was 8% lower than expected and down 26% YoY. This decrease was primarily due to higher other expenses compared to the previous year. Total sales volumes were in line with our estimates, with net oil realisation at $ 74.3/ barrel of oil. Reported profit after tax, at Rs 15.8 billion (down 9% YoY), was above our estimate due to higher-than-expected other income and lower tax rate. Management highlighted that there was accelerated drilling in some of the fields. It expects to double the number of wells in FY25 and incremental wells to be drilled in FY26 as well, which would take oil production to 4 million metric tone in FY26. Management guided oil production of 3.35-3.40 million metric tone in FY24, and 3.8 million metric tone in FY25 (after taking into account the natural decline of 8-10% from existing fields in all three years)..Our revised production volume assumptions for FY26 for oil and gas remains at 3.68 million metric tone for oil and 4.22 billion cubic meters for gas, still 8/16% below company guidance. Our crude assumption remains at $ 85/ bbl for FY25/26. We raise our earning per share by 8% for FY24E and increase the revenue/Ebitda/EPS for FY25E and FY26E by 4%/8%/13% and 5%/10%/14%, respectively, fueled by the strong outlook for oil and gas production. The stock currently trades at a price/earning multiple of 7.2 times FY25E EPS and 5.5 times FY25E enterprise value/Ebitda. We value the stock at 7 times December- 25E standalone adjusted EPS and add investments to arrive at our target price of Rs 650. Reiterate 'Buy'..Click on the attachment to read the full report:.Retail Traders Are Losing Billions In India’s Booming Options Market.DISCLAIMERThis 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.

Oil India Q3 Results Review - Production Outlook Remains Robust Going Forward: Motilal Oswal

Miss on Ebitda; beat on profit after tax due to higher-than expected other income and lower tax.

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