Buy Oil India; target of Rs 230: Sharekhan
Sharekhan’s research report on Oil India
Operating profit lagged estimates due to higher-than-expected other operating expenses. Adjusted PAT was in line with estimates, at Rs. 818 crore. We do not expect upstream oil PSUs to bear fuel subsidy with a stable central government and adequate fuel subsidy provision for FY20E; we thus expect net oil realisations at $ 65/bbl during FY20E-FY21E.
We maintain our Buy rating on Oil India with an unchanged SoTP based PT of Rs. 230 as valuations are discounting worst-case net oil realisation of $ 48/bbl; stock also offers healthy dividend yield of 5-6%.
For all recommendations report, click here
Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.