⚠ Disclaimer: This report is generated using AI tools and is for informational purposes only. It does not constitute investment advice. Please consult a registered financial advisor before making any investment decisions.
OIL - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 3.9
| Stock Code | OIL | Market Cap | 76,459 Cr. | Current Price | 470 ₹ | High / Low | 524 ₹ |
| Stock P/E | 18.0 | Book Value | 298 ₹ | Dividend Yield | 2.44 % | ROCE | 15.2 % |
| ROE | 13.5 % | Face Value | 10.0 ₹ | DMA 50 | 465 ₹ | DMA 200 | 441 ₹ |
| Chg in FII Hold | -0.02 % | Chg in DII Hold | 0.23 % | PAT Qtr | 808 Cr. | PAT Prev Qtr | 1,044 Cr. |
| RSI | 48.7 | MACD | 0.62 | Volume | 27,76,929 | Avg Vol 1Wk | 42,49,560 |
| Low price | 322 ₹ | High price | 524 ₹ | PEG Ratio | 1.12 | Debt to equity | 0.28 |
| 52w Index | 73.2 % | Qtr Profit Var | -33.8 % | EPS | 26.2 ₹ | Industry PE | 23.3 |
📊 Financial Overview
- Revenue & Profitability: Quarterly PAT declined to ₹808 Cr. from ₹1,044 Cr. (-33.8%). Despite this, ROE (13.5%) and ROCE (15.2%) remain strong, reflecting efficient capital use.
- Debt & Liquidity: Debt-to-equity at 0.28 indicates low leverage, ensuring financial stability and manageable obligations.
- Valuation: P/E of 18.0 is below industry average (23.3), suggesting fair to undervalued pricing. P/B ~1.58 indicates moderate premium over book value. PEG ratio (1.12) shows balanced growth prospects.
- Technical Indicators: RSI at 48.7 shows neutral momentum; MACD at 0.62 indicates mild bullishness. Current price ₹470 is above DMA 50 (₹465) and DMA 200 (₹441), showing strength.
🏢 Business Model & Competitive Advantage
- Oil India Limited (OIL) operates in upstream oil & gas exploration and production, with diversified energy operations.
- Competitive advantage lies in government backing, scale of operations, and strategic role in India’s energy sector.
💡 Entry Zone Recommendation
- Entry zone: ₹440–₹470, near DMA support levels.
- Attractive for long-term investors given strong fundamentals, moderate valuation, and dividend yield.
📈 Long-Term Holding Guidance
- Suitable for long-term holding due to strong ROE/ROCE and stable dividend payouts.
- Upside potential linked to global crude price cycles and domestic energy demand growth.
✅ Positive
- Strong ROE (13.5%) and ROCE (15.2%).
- Low debt-to-equity ratio (0.28).
- P/E (18.0) below industry average (23.3).
- Dividend yield of 2.44% adds investor appeal.
⚠️ Limitation
- Quarterly PAT declined (-33.8%).
- P/B ratio (~1.58) indicates premium valuation.
- High dependence on global crude price volatility.
📉 Company Negative News
- Recent profit decline from ₹1,044 Cr. to ₹808 Cr.
- FII holdings slightly reduced (-0.02%).
📈 Company Positive News
- DII holdings increased (+0.23%).
- Strong fundamentals with high ROE/ROCE.
- Price trading above DMA 200, showing technical strength.
🏭 Industry
- Oil & gas industry P/E at 23.3, higher than OIL’s valuation.
- Sector growth tied to global energy demand and crude price cycles.
🔎 Conclusion
- OIL is fundamentally strong with efficient returns, low debt, and fair valuation compared to peers.
- Entry near ₹440–₹470 is attractive for long-term investors; recommended as a stable holding with consistent dividends and sector resilience.