OIL India - Results inline, Maintain Accumulate - Emkay

Reco: ACCUMULATE
CMP: Rs475
Target Price: Rs573

- Results were broadly in line with street and our estimates, with sales at Rs.25.1bn and PAT at Rs.9.5bn. Net realization was in line - declining by 2.5% QoQ to $52.5/bbl

- Crude oil sales volume stood at 0.943mmt, decline of 2.45% YoY, flat sequentially. However, natural gas sales volume increased by 13% QoQ and flat YoY at 0.548BCM

- Of the gross under-recovery of Rs.382bn, total upstream share of stood at Rs.151bn (39.7% share). Within upstream OIL India's share stood at 13.7% to Rs.20.7bn

- 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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