Oil India Share Price Target: Emkay Rates ‘BUY’ with Revised Target Price

Oil India has garnered attention with a recent analysis by Emkay Global Financial Services, which reaffirmed a ‘BUY’ rating and revised the target price (TP) to Rs 495 following the company’s Q4FY25 financial results. The report underscores significant developments and financial metrics affecting investor sentiment.

Q4FY25 Financial Performance and Key Metrics
According to Emkay’s assessment, Oil India reported a standalone EBITDA of Rs19.8 billion for Q4FY25, slightly missing estimates due to higher-than-expected other expenditures, but achieved a Profit After Tax (PAT) of $15.9 billion, surpassing expectations by 16%. The company’s total oil and gas production showed stability year-over-year, with a notable increase in the crude oil sales-to-production ratio reaching 100%.

NRL’s Contribution and Revised Projections
The report highlights NRL’s robust performance with an EBITDA rise of 53% quarter-over-quarter, driven by higher Gross Refining Margins (GRM) amidst steady volumes. Emkay has adjusted its earnings per share (EPS) estimates for FY26 and FY27 downward by 9% and 11%, respectively, factoring in lower oil and gas realizations based on current market trends.

Read More 
Belrise Industries IPO: Check Latest GMP, Allotment Dates & Key Details

Market Valuation and Investment Outlook
Emkay values Oil India using a Sum-of-the-Parts (SOTP) approach, incorporating both standalone and NRL figures through Discounted Cash Flow (DCF) methodology. Despite revising the Mar-26E TP downward by approximately 15%, the firm maintains a positive outlook with a target Price-to-Earnings (P/E) ratio of 9.4x.

Key Risks and Strategic Considerations

The analysis also outlines key risks, including fluctuating oil and gas prices, policy uncertainties, operational challenges, and geopolitical tensions that could impact Oil India’s future performance and investor sentiment.

With Emkay’s endorsement and revised TP, Oil India continues to navigate market dynamics while focusing on operational efficiencies and strategic growth initiatives. Investors are advised to monitor upcoming analyst meetings for updated guidance on production targets and regulatory developments.
 

The views expressed in this article are purely informational and Republic Media Network does not vouch for, promote or endorse any opinions stated by any third party. Stock market and Mutual Fund investments are subject to market risks and readers are advised to seek expert advice before investing in stocks, derivatives and Mutual Funds