Upside risk on volumes key to sustaining valuations

Company
12 Aug 2024
5 Min read 
  • Oil India's 1QFY25 EBITDA in line with estimates, but PAT 20% below expectations.
  •  Company's oil and gas production increased 6% and 10% YoY in 1QFY25.
  •  Numaligarh refinery achieved PAT of INR4.3b and GRM of USD6.4/bbl in 1QFY25.
  •  Capacity expansion for NRL from 3mmt to 9mmt to be completed by Dec25.
  •  OINL's SA debt amounted to INR113b, while NRL's debt stood at INR95b as of 30 Jun24.
  •  Reiterate BUY with TP of INR740/share, valuing standalone business at 10x FY26E P/E.
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