OIL - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 3.8
| Stock Code | OIL | Market Cap | 79,834 Cr. | Current Price | 491 ₹ | High / Low | 524 ₹ |
| Stock P/E | 18.8 | Book Value | 298 ₹ | Dividend Yield | 2.34 % | ROCE | 15.2 % |
| ROE | 13.5 % | Face Value | 10.0 ₹ | DMA 50 | 472 ₹ | DMA 200 | 449 ₹ |
| Chg in FII Hold | 0.13 % | Chg in DII Hold | -0.01 % | PAT Qtr | 808 Cr. | PAT Prev Qtr | 1,044 Cr. |
| RSI | 58.5 | MACD | 3.85 | Volume | 50,41,634 | Avg Vol 1Wk | 60,51,288 |
| Low price | 385 ₹ | High price | 524 ₹ | PEG Ratio | 1.17 | Debt to equity | 0.28 |
| 52w Index | 76.1 % | Qtr Profit Var | -33.8 % | EPS | 26.2 ₹ | Industry PE | 28.2 |
📊 OIL demonstrates solid fundamentals with ROE at 13.5% and ROCE at 15.2%, reflecting efficient capital use. The P/E ratio of 18.8 is well below the industry average of 28.2, suggesting undervaluation. Dividend yield of 2.34% adds income appeal, while debt-to-equity at 0.28 indicates moderate leverage. The PEG ratio of 1.17 suggests growth is reasonably priced. However, quarterly PAT declined significantly (-33.8%), raising concerns about earnings stability.
💰 Ideal Entry Price Zone: 450 ₹ – 470 ₹, near its 200 DMA (449 ₹) and 50 DMA (472 ₹), offering a balanced entry point with valuation support.
📈 Long-Term Holding Guidance: If already holding, OIL is suitable for a medium-to-long-term horizon (3–5 years). Consider partial profit booking near 510–520 ₹ (recent highs) while retaining core holdings for dividend income and long-term growth. Monitor earnings consistency before extending holding beyond 5 years.
✅ Positive
- ROE (13.5%) and ROCE (15.2%) show efficient capital returns.
- P/E of 18.8 is lower than industry average (28.2), indicating undervaluation.
- Dividend yield of 2.34% provides steady income.
- PEG ratio of 1.17 suggests growth at fair valuation.
⚠️ Limitation
- Quarterly PAT dropped sharply (-33.8%), raising concerns about earnings stability.
- DII holding decreased slightly (-0.01%), showing reduced domestic institutional interest.
📉 Company Negative News
- PAT declined from 1,044 Cr. to 808 Cr.
- High volatility in quarterly earnings performance.
📈 Company Positive News
- FII holding increased (+0.13%), reflecting foreign investor confidence.
- MACD positive (3.85) and RSI at 58.5 indicate healthy technical momentum.
🏭 Industry
- Industry P/E at 28.2, higher than OIL’s 18.8, making OIL undervalued relative to peers.
- Energy sector benefits from global demand but remains sensitive to crude price fluctuations and policy changes.
🔎 Conclusion
OIL is a fundamentally strong company with undervaluation, decent dividend yield, and efficient capital returns. Despite recent profit decline, it remains a good candidate for medium-to-long-term investment. Entry near 450–470 ₹ offers better risk-reward. Current holders should maintain positions for 3–5 years, booking partial profits near highs while monitoring earnings stability.