Oil India - Crude Jump To Bring Big Gains; Other Upsides Too: ICICI Securities
Emissions rise from chimneys at the Oil and Natural Gas Corporation Ltd. Uran plant in India. (Photographer: Dhiraj Singh/Bloomberg)

Oil India - Crude Jump To Bring Big Gains; Other Upsides Too: ICICI Securities

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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:

ICICI Securities Oil India Reinitiation Update.pdf

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