Please refer to important disclosures at the end of this report
1
Oil India Limited (OINL) is engaged in providing crude oil and natural gas. The
Company's segments include Crude Oil, Natural Gas, LPG, Pipeline
Transportation and Others. OINL’s management expects operational parameters
across the business to improve, guiding for gas production of ~3bcm for FY17
and 3.1bcm for FY18, but stagnant oil production. Management indicated that
~80% of its costs are fixed as it owns most of the drilling assets. OINL’s
management expects that in coming years the gas business to clearly outperform
the crude oil which is led by a faster production ramp-up. OINL bearing in mind
a better production position and promising benefits from cost efficiency can be
positive for the company in long run. The company has been maintaining a
healthy dividend payout of 44.19% (Div Yield: 3.84%). The company has
reported a good Return on Equity (RoE) of 15% for the last 5 years. Hence Buy.
BUY
CMP `417
Stock Info
Sector
Beta 0.4
Bloomberg Code
Shareholding Pattern (%)
Promoters 67.6
MF / Banks / Indian Fls 25.1
FII / NRIs / OCBs 3.7
Indian Public / Others 3.6
Abs. (%) 3m 1yr 3yr
Sensex (7.9) (0.2) 27.4
Oil India 11.8 12.9 (7.8)
Reuters Code OILI.BO
10
BSE Sensex 25,765
Nifty 7,929
Face Value (`)
Oil & Gas
Market Cap (` cr) 25,058
52 Week High / Low 426/301
Avg. Daily Volume 56,357
Vaibhav Agrawal
022 – 3935 7800 Ext: 6808
Oil India
Others | Oil & Gas
November 22, 2016
Oil India | Oil & Gas
November 22, 2016
2
Research Team Tel: 022 - 39357800 E-mail: [email protected] Website: www.angelbroking.com
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Disclosure of Interest Statement Oil India
1. Financial interest of research analyst or Angel or his Associate or his relative No
2. Ownership of 1% or more of the stock by research analyst or Angel or associates or relatives No
3. Served as an officer, director or employee of the company covered under Research No
4. Broking relationship with company covered under Research No
Ratings (Based on expected returns Buy (> 15%) Accumulate (5% to 15%) Neutral (-5 to 5%)
over 12 months investment period): Reduce (-5% to -15%) Sell (< -15)