NSEI:OIL

Stock Analysis Report

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Executive Summary

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


Snowflake Analysis

Solid track record established dividend payer.


Similar Companies

Share Price & News

How has Oil India's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: OIL has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

4.7%

OIL

-0.5%

IN Oil and Gas

0.3%

IN Market


1 Year Return

-46.4%

OIL

0.6%

IN Oil and Gas

-11.3%

IN Market

Return vs Industry: OIL underperformed the Indian Oil and Gas industry which returned 0.6% over the past year.

Return vs Market: OIL underperformed the Indian Market which returned -11.3% over the past year.


Shareholder returns

OILIndustryMarket
7 Day4.7%-0.5%0.3%
30 Day9.1%9.8%7.2%
90 Day13.0%44.2%26.2%
1 Year-42.0%-46.4%4.6%0.6%-9.6%-11.3%
3 Year-35.2%-46.2%38.7%24.2%-0.3%-5.6%
5 Year-40.2%-54.9%72.4%41.4%21.6%10.2%

Price Volatility Vs. Market

How volatile is Oil India's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Oil India undervalued compared to its fair value and its price relative to the market?

2.71x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: OIL (₹95.2) is trading above our estimate of fair value (₹20.3)

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


Price To Earnings Ratio

PE vs Industry: OIL is good value based on its PE Ratio (2.7x) compared to the Oil and Gas industry average (14.3x).

PE vs Market: OIL is good value based on its PE Ratio (2.7x) compared to the Indian market (12.2x).


Price to Earnings Growth Ratio

PEG Ratio: OIL's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: OIL is good value based on its PB Ratio (0.4x) compared to the IN Oil and Gas industry average (1x).


Next Steps

Future Growth

How is Oil India forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?

-24.3%

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 (-24.3% per year).

Earnings vs Market: OIL's earnings are forecast to decline over the next 3 years (-24.3% per year).

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

Revenue vs Market: OIL's revenue is expected to decline over the next 3 years (-7.6% per year).

High Growth Revenue: OIL's revenue is forecast to decline over the next 3 years (-7.6% 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 (7.9%).


Next Steps

Past Performance

How has Oil India performed over the past 5 years?

7.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: OIL has high quality earnings.

Growing Profit Margin: OIL's current net profit margins (31.4%) are higher than last year (23.5%).


Past Earnings Growth Analysis

Earnings Trend: OIL's earnings have grown by 7.7% per year over the past 5 years.

Accelerating Growth: OIL's earnings growth over the past year (17.8%) exceeds its 5-year average (7.7% per year).

Earnings vs Industry: OIL earnings growth over the past year (17.8%) exceeded the Oil and Gas industry -22%.


Return on Equity

High ROE: OIL's Return on Equity (13.2%) is considered low.


Next Steps

Financial Health

How is Oil India's financial position?


Financial Position Analysis

Short Term Liabilities: OIL's short term assets (₹100.0B) exceed its short term liabilities (₹56.7B).

Long Term Liabilities: OIL's short term assets (₹100.0B) do not cover its long term liabilities (₹169.2B).


Debt to Equity History and Analysis

Debt Level: OIL's debt to equity ratio (50.2%) is considered high.

Reducing Debt: OIL's debt to equity ratio has increased from 42.2% to 50.2% over the past 5 years.

Debt Coverage: OIL's debt is well covered by operating cash flow (36.6%).

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


Balance Sheet


Next Steps

Dividend

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

11.13%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: OIL's dividend (11.13%) is higher than the bottom 25% of dividend payers in the Indian market (0.7%).

High Dividend: OIL's dividend (11.13%) is in the top 25% of dividend payers in the Indian market (2.92%)


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.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (30.1%), OIL's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: OIL's dividends in 3 years are forecast to be well covered by earnings (19.7% payout ratio).


Next Steps

Management

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

1.3yrs

Average management tenure


CEO

Sushil Mishra

0.75

Tenure

Mr. Sushil Chandra Mishra serves as Chairman & Managing Director at Oil India Limited since October 1, 2019. 


Leadership Team

NamePositionTenureCompensationOwnership
Biswajit Roy
Director of Human Resources & Business Development and Director5.17yrs₹8.20mno data
Pattabhiraman Chandrasekaran
Director of Exploration & Development and Director3.25yrs₹6.67mno data
Sushil Mishra
Chairman & MD0.75yrno datano data
Harish Madhav
CFO, Director of Finance & Director0.92yrno datano data
Pankaj Goswami
Director of Operations & Director0.083yrno datano data
Ajaya Sahoo
GM, Company Secretary & Compliance Officer1.25yrsno datano data
Hem Sharma
Head of CLPno data₹3.91mno data
Purushottam Saraswat
Head of Services RP - Jodhpurno datano datano data
Tabarak Mazumdar
Head of Drilling Supportno datano datano data
Udaysankar Sengupta
Head of Chemicalno datano datano data

1.3yrs

Average Tenure

64.5yo

Average Age

Experienced Management: OIL's management team is not considered experienced ( 1.3 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Biswajit Roy
Director of Human Resources & Business Development and Director5.17yrs₹8.20mno data
Pattabhiraman Chandrasekaran
Director of Exploration & Development and Director3.25yrs₹6.67mno data
Sushil Mishra
Chairman & MD0.75yrno datano data
Harish Madhav
CFO, Director of Finance & Director0.92yrno datano data
Pankaj Goswami
Director of Operations & Director0.083yrno datano data
Rajiv Gupta
Chief Vigilance Officer & Directorno datano datano data
Amar Nath
Government Nominee Director1.75yrsno datano data
Asha Kaul
Independent Director2.83yrs₹340.00kno data
Priyanka Sharma
Independent Director2.83yrs₹480.00kno data
S. Manoharan
Independent Director2.83yrs₹500.00kno data

2.8yrs

Average Tenure

59yo

Average Age

Experienced Board: OIL's board of directors are not considered experienced ( 2.8 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.


Recent Insider Transactions

Ownership Breakdown

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


Top Shareholders

Company Information

Oil India Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Oil India Limited
  • Ticker: OIL
  • Exchange: NSEI
  • Founded: 1889
  • Industry: Oil and Gas Exploration and Production
  • Sector: Energy
  • Market Cap: ₹102.802b
  • Shares outstanding: 1.08b
  • Website: https://www.oil-india.com

Number of Employees


Location

  • Oil India Limited
  • Plot No. 19
  • Near Film City
  • Noida
  • Uttar Pradesh
  • 201301
  • India

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
533106BSE (Mumbai Stock Exchange)YesEquity SharesININRSep 2009
OILNSEI (National Stock Exchange of India)YesEquity SharesININRSep 2009

Biography

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), and Pipeline Transportation segments. It is also involved in the transportation of crude oil; and production of LPG, as well as in the provision of exploration and production related services. The company owns and operates 1,157 kilometers of cross-country crude oil pipelines; and 13 drilling rigs and 14 work-over rigs, as well as owns 10 crude oil pumping stations and 17 repeater stations in Assam, West Bengal, and Bihar states. It also generates energy through wind and solar power projects. In addition, the company has participating interests in NELP exploration blocks in Mahanadi Offshore, Mumbai Deepwater, Krishna Godavari Deepwater, etc., as well as in various projects in Libya, Gabon, the United States, Nigeria, Sudan, Yemen, Venezuela, Mozambique, Myanmar, Bangladesh, Russia, and Israel. Oil India Limited was founded in 1889 and is based in Noida, India. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/07/02 12:36
End of Day Share Price2020/07/02 00:00
Earnings2020/03/31
Annual Earnings2020/03/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.