Oil India Ltd - Q4 FY21 Result Report - YES Securities

(Rating: ADD, TP: Rs175, Upside: 16%)

- Operating Profit and PAT stood at Rs 4.24bn and Rs 8.5bn (-8.6% YoY; -6.3% QoQ), as against at operating loss (Ebitda) of Rs 11bn and Rs 0.94bn in the 4QFY20 and 3QFY21.

- A recovery in crude oil realization to an average of USD 59.8/bbl (3Q: USD 44.1/bbl), along with higher other income of Rs 13.3bn, backed by high dividend payout from IOCL, aided 4Q earnings

- While, FY21 earnings were riddled with several challenges, , going ahead we expect profitability to normalize as a) crude oil prices have recovered and are trending above ~USD 70/bbl as we write, b) natural gas prices through muted at present are likely to be revised upwards in Oct'21, c) crude oil and natural production is likely to improve on backs of EoR activity undertaken and fast track development of new gas fields

- We assume coverage of OINL with an ADD rating and a TP of Rs 175/sh

Shares of OIL INDIA LTD. was last trading in BSE at Rs.152.55 as compared to the previous close of Rs. 151.2. The total number of shares traded during the day was 164779 in over 2277 trades.

The stock hit an intraday high of Rs. 154.85 and intraday low of 151.2. The net turnover during the day was Rs. 25251750.

Source : Equity Bulls

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