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Oil India Ltd (OIL) is a large-cap company with a market capitalization of 32,239 crore that operates in the Gas & Petroleum industry. It is a government-owned enterprise with Navratna status under the administrative supervision of the Ministry of Petroleum and Natural Gas. On the NSE, OIL shares opened today at 280.30 and reached a new all-time high of 306.00. The stock's previous 52-week high was 301.20, set on 07-Jun-2022. The stocks’ trade volume today was 28,835,734, and after reaching a new 52-week high of 306 on both the BSE and the NSE, the stock today outperformed the sector by more than 3%. On the BSE, the shares of Oil India have risen from 140.65 to the latest trading price of 297.15, representing a multibagger gain of 111.27 per cent in one year, surpassing the Sensex by 105.5 per cent. On a year-to-date (YTD) basis, Oil India shares have risen by 49.70 per cent compared to a 6.53 per cent decline in the Sensex so far in 2022, outperforming the Sensex by 43 per cent.

Based on a new 52-week high of 306 as of 9th June 2022 and a 52-week low of 139.40 as of 10th June 2021, the stock is now trading 2.54 per cent below its 52-week high and 113 per cent above its 52-week low at 298.20 and its current level is an upside gap of 6.48% from its previous close of 280.05. The company's Board of Directors has proposed a final dividend of 5/- per share for the fiscal year 2021-22, subject to shareholder approval. So, should one buy the stock right now? Let's see what different brokerage firms have to say.

The brokerage firm Prabhudas Lilladher has said in a note that Oil India is well placed to benefit from rising oil and gas prices and high GRMs and FY25E EBIDTA can increase to Rs210bn (FY22-Rs105bn) on higher volumes. The brokerage has maintained a buy rating on the stock with a target price of 344 per share.

The brokerage company Sharekhan has said in a report that “The recent sharp surge in crude oil prices and expectation of further steep hike in domestic gas prices from October 2022 would drive an 11% CAGR in OIL’s standalone PAT over FY2022-FY2024E and improve RoE to 14.3%. Moreover, the recent stake increase in Numaligarh Refinery Ltd (NRL) could create long-term value for OIL. Hence, we maintain a Buy rating with an unchanged SoTP-based PT of Rs. 290."

The views and recommendations made above are those of individual analysts or broking companies, and not of Mint.

ABOUT THE AUTHOR

Vipul Das

Vipul Das is a Digital Business Content Producer at Livemint. He previously worked for Goodreturns.in (OneIndia News) and has over 5 years of expertise in the finance and business sector. Stocks, mutual funds, personal finance, tax, and banking are among his specialties, and he is a professional in industry research and business reporting. He received his bachelor's degree from Dr. CV Raman University and also have completed Diploma in Journalism and Mass Communication (DJMC).
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