DINESH

Oil India

Latest CMP 468
Today's Change ▼ -2.36%
52-Week High / Low 518 | 380
Price Date: 14-Aug-2026
Recommendation Buy
Target Price 757
Expected Upside 27.1%
Forecast Horizon 2 Years
Historical CAGR 13.0%
1,000 Invested 30-Sep-2009
Today's Value 7,884
Investment Period 17 Years

Stock Snapshot

Post Results Return
+4.4%
Mild Positive Re-rating
1-Year Target Price
754
2-Year Target Price
757
52-Week High / Low
518 / 380
20-Day Return
+3.3%
Market Cap (Cr.)
76,207
Current PE
11.0
P/BV Ratio
1.3
Dividend Yield
3.7%
Industry PE
17.9

Price Performance

Basis of our Recommendation

Oil India Limited is positioned for significant growth, driven by management's aggressive drilling strategy and the expansion of the Numaligarh Refinery (NRL). Recent earnings calls highlight a bullish outlook, with expectations to increase crude oil production to over 4 million metric tons and resolve gas evacuation bottlenecks through critical pipeline projects. This operational focus aligns with Vista's forecast of accelerating revenue growth and improving margins, supported by favorable crude price realizations. However, potential execution risks related to infrastructure delays and regulatory pressures on refinery margins remain key watchpoints. The broader industry context, characterized by improving pricing power and stable demand, further supports Oil India's growth trajectory. Over the next 12-24 months, the company faces opportunities in deep-water exploration and renewable energy initiatives, while geopolitical tensions and rising operational costs present notable headwinds. Overall, Oil India's strategic initiatives and market positioning suggest a robust outlook, with a target price reflecting substantial upside potential

👍 Why We Like This Stock

  • Management's aggressive drilling and refinery expansion plans are expected to significantly boost production volumes
  • Improving pricing power in the oil market enhances revenue potential for Oil India
  • Strategic investments in renewable energy and deep-water exploration align with long-term growth objectives

Things To Watch Out For

  • Execution risks related to infrastructure bottlenecks and project delays could hinder growth
  • Regulatory pressures on refinery margins may impact profitability
  • Geopolitical tensions and rising operational costs pose ongoing challenges to the business

Key Parameters

Balance Sheet Strength
Stable Financial Structure
Market Share
Stable
Industry Outlook
Improving
Analyst View
Buy
Dividend History
Consistent
FII Holdings
Stable

Financial Snapshot

Actuals Forecast
FY24 FY25 FY26 FY27 FY28
Revenue (Cr.) 31,749 31,703 33,946 46,176 51,991
Profit Before Tax (Cr.) 11,170 9,369 9,582 17,866 18,098
PBT Margin 35.2% 29.6% 2822.7% 38.7% 34.8%
Net Profit (Cr.) 7,861 7,105 7,488 13,997 12,416
Earnings Per Share 44.4 40.7 40.3 75.4 76.3

Analyst Recommendations

Broker Recommendation Target Price Date
CLSA ▲ Outperform 550 11-Aug-2026
HDFC Securities ▲ Buy 639 27-May-2026
ICICI Securities ▲ Buy 545 11-Aug-2026
JMFinancials ▲ Buy 620 18-May-2026
Kotak Securities ▼ Sell 365 11-Jun-2026
Morgan Stanley ▼ Underweight 404 10-Jun-2026
Motilal Oswal ► Neutral 485 10-Aug-2026
Nomura ▲ Buy 720 14-May-2026
Prabhudas Liladhar ► Accumulate 511 11-Aug-2026
Consensus Recommendation ▲ Buy
Consensus Target 510
Coverage 9 Analysts
Analysts' Viewpoint
Oil India's strategic focus on aggressive capital deployment and operational expansion, including a record-high drilling target and significant refinery capacity increase at Numaligarh, supports its growth trajectory. The company's ability to overcome infrastructure bottlenecks and execute the NRL expansion is crucial, with potential risks from exploration write-offs and crude price volatility. Future catalysts include the full commissioning of NRL by March 2027 and completion of pipeline projects, which are expected to enhance gas offtake and production volumes.

Company Overview

Show Company Profile

Oil India Limited engages in the exploration, development, and production of crude oil and natural gas in India. It operates through Crude Oil, Natural Gas, Liquefied Petroleum Gas (LPG), Pipeline Transportation, Renewable Energy, and Others segments. The company owns and operates automated crude oil trunk pipeline comprising an area of 1,157 kilometers; and drilling rigs and workover rigs. It is also involved in the transportation of crude oil and natural gas; and production of LPG and condensate, as well as in the pipeline transportation services. In addition, it generates energy through wind and solar power projects. Oil India Limited was founded in 1889 and is based in Noida, India.