OIL India Ltd - Weak rupee drives profitability - Emkay

Reco: ACCUMULATE
CMP: Rs 480
Target Price: Rs 573

- Results were above street expectations, with sales at Rs.24.3bn and PAT at Rs.9.3bn. Net realization on oil was in line - declining by 10.2% to $53.8/bbl.

- Lower than expected other operating expenditure helped EBITDA growth of 6.3% to Rs.12bn.

- Plant shutdown at Numaligarh Refinery for 1.5 month affected sales volume, decline by 3.3% YoY to 1.4mmt.

- At CMP stock trades at 8x FY14 EPS and 1.3x P/BV. Maintain Accumulate with TP of Rs.573. Ad hoc subsidy sharing remains key overhang.

Source : Equity Bulls

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