Oil India (NSEI:OIL) - Share price, News & Analysis

Q: What is the Fair Price of OIL when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

OIL (₹186.9) is trading above our estimate of [[fair value]] (₹173.28)

OIL fundamental analysis
Snowflake Score
Valuation	3/6
Future Growth	0/6
Past Performance	6/6
Financial Health	3/6
Dividends	5/6

OIL Stock Overview

Oil India Limited explores for, develops, and produces crude oil and natural gas in India and internationally.

Rewards

Price-To-Earnings ratio (3.6x) is below the Indian market (21.4x)

Earnings grew by 59.4% over the past year

Risk Analysis

Earnings are forecast to decline by an average of 4.7% per year for the next 3 years

Highly volatile share price over the past 3 months

Has a high level of debt

Unstable dividend track record

Oil India Competitors

Hindustan Oil Exploration

BSE:500186

₹22.4b

Mangalore Refinery and Petrochemicals

BSE:500109

₹125.6b

Petronet LNG

NSEI:PETRONET

₹316.4b

Hindustan Petroleum

NSEI:HINDPETRO

₹340.5b

Price History & Performance

Summary of all time highs, changes and price drops for Oil India
Historical stock prices
Current Share Price	₹186.90
52 Week High	₹306.00
52 Week Low	₹159.80
Beta	0.71
1 Month Change	0.16%
3 Month Change	-16.23%
1 Year Change	14.31%
3 Year Change	23.61%
5 Year Change	-2.13%
Change since IPO	-18.11%

Recent News & Updates

Jul 29

Here's Why Oil India (NSE:OIL) Has Caught The Eye Of Investors

For beginners, it can seem like a good idea (and an exciting prospect) to buy a company that tells a good story to...

Shareholder Returns

	OIL	IN Oil and Gas	IN Market
7D	-1.3%	-0.6%	0.5%
1Y	14.3%	18.9%	8.7%

Return vs Industry: OIL underperformed the Indian Oil and Gas industry which returned 20.1% over the past year.

Return vs Market: OIL exceeded the Indian Market which returned 8.8% over the past year.

Price Volatility

Is OIL's price volatile compared to industry and market?
OIL volatility
OIL Average Weekly Movement	9.8%
Oil and Gas Industry Average Movement	7.2%
Market Average Movement	6.4%
10% most volatile stocks in IN Market	9.1%
10% least volatile stocks in IN Market	4.2%

Stable Share Price: OIL is more volatile than 90% of Indian stocks over the past 3 months, typically moving +/- 10% a week.

Volatility Over Time: OIL's weekly volatility (10%) has been stable over the past year, but is still higher than 75% of Indian stocks.

About the Company

Founded	Employees	CEO	Website
1889	6,074	Ranjit Rath	https://www.oil-india.com

Oil India Limited explores for, develops, and produces crude oil and natural gas in India and internationally. The company operates through Crude Oil, Natural Gas, Liquefied Petroleum Gas (LPG), Pipeline Transportation, and Renewal Energy segments. It is also involved in the transportation of crude oil and natural gas; and production of LPG, as well as in the provision of exploration and production related services.

Oil India Fundamentals Summary

How do Oil India's earnings and revenue compare to its market cap?
OIL fundamental statistics
Market Cap	₹202.68b
Earnings (TTM)	₹56.22b
Revenue (TTM)	₹300.11b

3.6x

P/E Ratio

0.7x

P/S Ratio

Is OIL overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
OIL income statement (TTM)
Revenue	₹300.11b
Cost of Revenue	₹152.46b
Gross Profit	₹147.65b
Other Expenses	₹91.44b
Earnings	₹56.22b

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

Aug 10, 2022

Earnings per share (EPS)	51.84
Gross Margin	49.20%
Net Profit Margin	18.73%
Debt/Equity Ratio	49.5%

How did OIL perform over the long term?

See historical performance and comparison

Dividends

7.6%

Current Dividend Yield

27%

Payout Ratio

We’ve recently updated our valuation analysis.

Valuation

Is OIL undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

3/6

Valuation Score 3/6

Price-To-Earnings vs Peers
Price-To-Earnings vs Industry
Price-To-Earnings vs Fair Ratio
Below Fair Value
Significantly Below Fair Value
Analyst Forecast

Key Valuation Metric

Which metric is best to use when looking at relative valuation for OIL?

Other financial metrics that can be useful for relative valuation.

The above table shows the n/a ratio for OIL. This is calculated by dividing OIL's market cap by their current preferred multiple.
What is OIL's n/a Ratio?
n/a Ratio	0x
n/a	n/a
Market Cap	₹202.68b

OIL key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue	1.2x
Enterprise Value/EBITDA	3.3x
PEG Ratio	-0.8x

Price to Earnings Ratio vs Peers

How does OIL's PE Ratio compare to its peers?

OIL PE Ratio vs Peers

The above table shows the PE ratio for OIL vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	PE	Estimated Growth	Market Cap
Peer Average	28.2x
500186 Hindustan Oil Exploration	112.1x	n/a	₹22.4b
500109 Mangalore Refinery and Petrochemicals	2.1x	n/a	₹125.6b
PETRONET Petronet LNG	9.1x	10.9%	₹316.4b
HINDPETRO Hindustan Petroleum	n/a	60.5%	₹340.5b
OIL Oil India	3.6x	-4.7%	₹202.7b

Price-To-Earnings vs Peers: OIL is good value based on its Price-To-Earnings Ratio (3.6x) compared to the peer average (28.2x).

Price to Earnings Ratio vs Industry

How does OIL's PE Ratio compare vs other companies in the IN Oil and Gas Industry?

Price-To-Earnings vs Industry: OIL is good value based on its Price-To-Earnings Ratio (3.6x) compared to the Indian Oil and Gas industry average (13x)

Price to Earnings Ratio vs Fair Ratio

What is OIL's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

OIL PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	3.6x
Fair PE Ratio	6x

Price-To-Earnings vs Fair Ratio: OIL is good value based on its Price-To-Earnings Ratio (3.6x) compared to the estimated Fair Price-To-Earnings Ratio (6x).

Share Price vs Fair Value

What is the Fair Price of OIL when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: OIL (₹186.9) is trading above our estimate of fair value (₹173.28)

Significantly Below Fair Value: OIL is trading above our estimate of fair value.

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Target price is more than 20% higher than the current share price, but analysts are not within a statistically confident range of agreement.

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Future Growth

How is Oil India forecast to perform in the next 1 to 3 years based on estimates from 8 analysts?

Future Growth Score

0/6

Future Growth Score 0/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

-4.7%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: OIL's earnings are forecast to decline over the next 3 years (-4.7% per year).

Earnings vs Market: OIL's earnings are forecast to decline over the next 3 years (-4.7% per year).

High Growth Earnings: OIL's earnings are forecast to decline over the next 3 years.

Revenue vs Market: OIL's revenue (2.8% per year) is forecast to grow slower than the Indian market (10.7% per year).

High Growth Revenue: OIL's revenue (2.8% per year) is forecast to grow slower than 20% per year.

Earnings per Share Growth Forecasts

Future Return on Equity

Future ROE: OIL's Return on Equity is forecast to be low in 3 years time (12.3%).

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Past Performance

How has Oil India performed over the past 5 years?

Past Performance Score

6/6

Past Performance Score 6/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

16.9%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: OIL has high quality earnings.

Growing Profit Margin: OIL's current net profit margins (18.7%) are higher than last year (15.7%).

Past Earnings Growth Analysis

Earnings Trend: OIL's earnings have grown by 16.9% per year over the past 5 years.

Accelerating Growth: OIL's earnings growth over the past year (59.4%) exceeds its 5-year average (16.9% per year).

Earnings vs Industry: OIL earnings growth over the past year (59.4%) exceeded the Oil and Gas industry 54.4%.

Return on Equity

High ROE: OIL's Return on Equity (20.3%) is considered high.

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Financial Health

How is Oil India's financial position?

Financial Health Score

3/6

Financial Health Score 3/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage

Financial Position Analysis

Short Term Liabilities: OIL's short term assets (₹101.1B) exceed its short term liabilities (₹68.1B).

Long Term Liabilities: OIL's short term assets (₹101.1B) do not cover its long term liabilities (₹208.3B).

Debt to Equity History and Analysis

Debt Level: OIL's net debt to equity ratio (43.1%) is considered high.

Reducing Debt: OIL's debt to equity ratio has increased from 48% to 49.5% over the past 5 years.

Debt Coverage: OIL's debt is well covered by operating cash flow (56.6%).

Interest Coverage: OIL earns more interest than it pays, so coverage of interest payments is not a concern.

Balance Sheet

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Dividend

What is Oil India current dividend yield, its reliability and sustainability?

Dividend Score

5/6

Dividend Score 5/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Cash Flow Coverage

7.62%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: OIL's dividend (7.62%) is higher than the bottom 25% of dividend payers in the Indian market (0.39%).

High Dividend: OIL's dividend (7.62%) is in the top 25% of dividend payers in the Indian market (1.71%)

Stability and Growth of Payments

Stable Dividend: OIL's dividend payments have been volatile in the past 10 years.

Growing Dividend: OIL's dividend payments have increased over the past 10 years.

Earnings Payout to Shareholders

Earnings Coverage: With its reasonably low payout ratio (27.5%), OIL's dividend payments are well covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: With its reasonably low cash payout ratio (46.2%), OIL's dividend payments are well covered by cash flows.

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Management

How experienced are the management team and are they aligned to shareholders interests?

3.3yrs

Average management tenure

CEO

Ranjit Rath

no data

Tenure

Dr. Ranjit Rath is Chairman and Managing Director of Oil India Limited from August 02, 2022.

Leadership Team

Experienced Management: OIL's management team is considered experienced (3.3 years average tenure).

Board Members

Experienced Board: OIL's board of directors are not considered experienced ( 2.6 years average tenure), which suggests a new board.

Ownership

Who are the major shareholders and have insiders been buying or selling?

Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.

Data	Last Updated (UTC time)
Company Analysis	2022/08/10 00:00
End of Day Share Price	2022/08/10 00:00
Earnings	2022/03/31
Annual Earnings	2022/03/31