Oil India Ltd. (OIL) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

C P C L

ONGC

MRPL

Oil India

I O C L

HPCL

Deep Industries

B P C L

Reliance Industr

Gulf Oil Lubric.

Castrol India

Why is Oil India Ltd. ?

High Management Efficiency with a high ROCE of 16.18%

Company has a Debt to Equity ratio (avg) of 0.44 times

Healthy long term growth as Net Sales has grown by an annual rate of 21.98% and Operating profit at 46.91%

With ROCE of 8.6, it has a Attractive valuation with a 1.3 Enterprise value to Capital Employed

The stock is trading at a discount compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of 19.48%, its profits have risen by 1.1% ; the PEG ratio of the company is 11.7

High Institutional Holdings at 36.98%

These investors have better capability and resources to analyse fundamentals of companies than most retail investors.

Market Beating performance in long term as well as near term

Along with generating 19.48% returns in the last 1 year, the stock has outperformed BSE500 in the last 3 years, 1 year and 3 months

Real-Time Research Report

Verdict Report

How much should you buy?

Overall Portfolio exposure to Oil India should be less than 10%
Overall Portfolio exposure to Oil should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Oil)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is Oil India for you?

Medium Risk, High Return

Absolute

Risk Adjusted

Volatility

Oil India

19.46%

0.64

30.27%

Sensex

-6.84%

-0.53

12.96%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

21.98%

EBIT Growth (5y)

46.91%

EBIT to Interest (avg)

9.90

Debt to EBITDA (avg)

2.25

Net Debt to Equity (avg)

0.54

Sales to Capital Employed (avg)

0.49

Tax Ratio

21.20%

Dividend Payout Ratio

24.82%

Pledged Shares

Institutional Holding

36.98%

ROCE (avg)

15.88%

ROE (avg)

16.64%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

1.40

EV to EBIT

14.58

EV to EBITDA

10.79

EV to Capital Employed

1.26

EV to Sales

3.32

PEG Ratio

11.66

Dividend Yield

2.40%

ROCE (Latest)

8.65%

ROE (Latest)

11.41%

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Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

No Signal

Bollinger Bands

Mildly Bullish

Bullish

Moving Averages

Bullish (Daily)

KST

Mildly Bearish

Dow Theory

No Trend

Mildly Bullish

OBV

No Trend

Bullish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

13What is working for the Company

NET SALES(Q)

Highest at Rs 9,293.27 cr

PBDIT(Q)

Highest at Rs 3,280.91 cr.

OPERATING PROFIT TO NET SALES(Q)

Highest at 35.30%

PBT LESS OI(Q)

Highest at Rs 2,617.38 cr.

PAT(Q)

Highest at Rs 2,099.61 cr.

EPS(Q)

Highest at Rs 12.91

-9What is not working for the Company

DEBT-EQUITY RATIO(HY)

Highest at 0.65 times

DEBTORS TURNOVER RATIO(HY)

Lowest at 8.19 times

INTEREST(Q)

Highest at Rs 381.33 cr

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Here's what is working for Oil India

Profit Before Tax less Other Income (PBT) - Quarterly

At Rs 2,617.38 cr has Grown at 53.0% (vs previous 4Q average)

over average PBT of the previous four quarters of Rs 1,710.93 Cr

MOJO Watch

Near term PBT trend is very positive

PBT less Other Income (Rs Cr)

Profit After Tax (PAT) - Quarterly

At Rs 2,099.61 cr has Grown at 44.0% (vs previous 4Q average)

over average PAT of the previous four quarters of Rs 1,457.61 Cr

MOJO Watch

Near term PAT trend is very positive

PAT (Rs Cr)

Net Sales - Quarterly

Highest at Rs 9,293.27 cr

in the last five quarters

MOJO Watch

Near term sales trend is positive

Net Sales (Rs Cr)

Operating Profit (PBDIT) - Quarterly

Highest at Rs 3,280.91 cr.

in the last five quarters

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (Rs Cr)

Operating Profit Margin - Quarterly

Highest at 35.30%

in the last five quarters

MOJO Watch

Company's efficiency has improved

Operating Profit to Sales

Profit Before Tax less Other Income (PBT) - Quarterly

Highest at Rs 2,617.38 cr.

in the last five quarters

MOJO Watch

Near term PBT trend is positive

PBT less Other Income (Rs Cr)

Profit After Tax (PAT) - Quarterly

Highest at Rs 2,099.61 cr.

in the last five quarters

MOJO Watch

Near term PAT trend is positive

PAT (Rs Cr)

Earnings per Share (EPS) - Quarterly

Highest at Rs 12.91

in the last five quarters

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (Rs)

Here's what is not working for Oil India

Debt-Equity Ratio - Half Yearly

Highest at 0.65 times and Grown

each half year in the last five half yearly periods

MOJO Watch

The company is borrowing more to fund its operations; it's liquidity situation may be stressed

Debt-Equity Ratio

Interest - Quarterly

Highest at Rs 381.33 cr

in the last five quarters and Increased by 19.65 % (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (Rs cr)

Debtors Turnover Ratio- Half Yearly

Lowest at 8.19 times

in the last five half yearly periods

MOJO Watch

Company's pace of settling its Debtors has slowed

Debtors Turnover Ratio