Oil India - Crude Jump To Bring Big Gains; Other Upsides Too: ICICI Securities
BQ Blue’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BloombergQuint’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.
ICICI Securities Report
ICICI Securities reinitiates coverage on Oil India Ltd. with a BUY rating and target price of Rs 205 (55% upside).
We estimate OIL’s FY22E EPS to be up 131% year on year driven by 32% YoY rise in Brent and jump in share of profit from Numaligarh Refinery on hike in its stake to 70%.
Oil price recovery has been driven by OPEC+ capping supply and vaccine rollout hopes driving global oil demand to pre-Covid levels in a few quarters.
Raising stake in NRL would be earnings-accretive even if we assume an excise duty cut of Rs 5/litre on auto fuels.
Click on the attachment to read the full report:
This report is authored by an external party. BloombergQuint does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of BloombergQuint.
Users have no license to copy, modify, or distribute the content without permission of the Original Owner.