Oil India Q4 Review - Surge In Oil Price To Drive Strong Rebound: ICICI Securities

Oil India Ltd.'s crude oil storage tank. (Source: company website)

Oil India Q4 Review - Surge In Oil Price To Drive Strong Rebound: 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

Oil India Ltd.’s Q4 FY21 recurring standalone earnings per share was in the black versus in the red in Q4 FY20, driven by oil price and dividend rise.

Q4 consolidated recurring earnings was up 77% YoY due to jump in share of profit in Numaligarh Refinery Ltd. on increase in stake.

We have raised FY22-FY23E brent estimate by 13-8% to $67.5-65/barrel of oil and administered pricing mechanism gas price estimate by 4-37% to $2.6-4.25/metric million British thermal unit to factor the rise in underlying gas prices.

Factoring oil and gas price based on futures and higher gross refining margin for Numaligarh Refinery would mean further upside to FY22-FY23E earnings per share of 14-5% and to future value of 8%.

Click on the attachment to read the full report:

ICICI Securities Oil India Q4FY21 Results Update.pdf

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