OIL - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 3.6
| Stock Code | OIL | Market Cap | 81,306 Cr. | Current Price | 500 ₹ | High / Low | 531 ₹ |
| Stock P/E | 18.2 | Book Value | 298 ₹ | Dividend Yield | 2.30 % | ROCE | 10.5 % |
| ROE | 9.48 % | Face Value | 10.0 ₹ | DMA 50 | 480 ₹ | DMA 200 | 454 ₹ |
| Chg in FII Hold | 0.13 % | Chg in DII Hold | -0.01 % | PAT Qtr | 1,790 Cr. | PAT Prev Qtr | 808 Cr. |
| RSI | 56.3 | MACD | 8.58 | Volume | 20,07,553 | Avg Vol 1Wk | 25,23,416 |
| Low price | 385 ₹ | High price | 531 ₹ | PEG Ratio | -1.39 | Debt to equity | 0.30 |
| 52w Index | 78.6 % | Qtr Profit Var | 12.4 % | EPS | 27.4 ₹ | Industry PE | 28.6 |
📊 Financial Overview: Oil India Ltd (OIL) has a market cap of ₹81,306 Cr with a current price of ₹500. The 52-week range is ₹531–385. Profitability is moderate with ROE at 9.48% and ROCE at 10.5%. Debt-to-equity ratio of 0.30 indicates manageable leverage. PAT rose to ₹1,790 Cr from ₹808 Cr, showing strong improvement. EPS is ₹27.4, reflecting decent earnings power.
💰 Valuation Indicators: Stock P/E is 18.2, below the industry average of 28.6, suggesting undervaluation. Book value is ₹298, giving a P/B ratio of ~1.68. PEG ratio is negative (-1.39), reflecting growth concerns relative to valuation. Dividend yield of 2.30% adds shareholder value. Intrinsic value appears close to current price, offering moderate margin of safety.
🏭 Business Model & Competitive Advantage: OIL operates in oil & gas exploration and production. Its competitive advantage lies in government backing, established reserves, and integrated operations. Moderate debt and improving profits strengthen its financial health, though earnings remain sensitive to crude price volatility.
📈 Entry Zone & Long-Term Guidance: The stock looks undervalued compared to peers. A good entry zone is ₹460–490, near support levels. Long-term holding is favorable given improving profitability, dividend support, and manageable debt, though commodity price risks remain.
Positive
- 📈 [Profit Growth](ca://s?q=OIL_quarterly_profit_growth): PAT rose from ₹808 Cr to ₹1,790 Cr QoQ.
- 🏦 [Moderate Debt](ca://s?q=OIL_debt_to_equity): Debt-to-equity ratio of 0.30 shows manageable leverage.
- 💸 [Dividend Yield](ca://s?q=OIL_dividend_policy): Dividend yield of 2.30% provides steady income.
Limitation
- 📉 [Moderate Returns](ca://s?q=OIL_ROE_ROCE): ROE at 9.48% and ROCE at 10.5% are below top industry peers.
- ⚖️ [Negative PEG](ca://s?q=OIL_PEG_ratio): PEG ratio of -1.39 reflects valuation concerns.
- 🌍 [Commodity Dependence](ca://s?q=OIL_crude_price_dependency): Earnings highly sensitive to global crude prices.
Company Negative News
- 📊 [DII Exit](ca://s?q=OIL_DII_holdings): DII holdings decreased by -0.01%.
Company Positive News
- 📈 [FII Support](ca://s?q=OIL_FII_holdings): FII holdings increased by +0.13%.
- 💰 [Profit Surge](ca://s?q=OIL_PAT_growth): Quarterly profit growth of 12.4% indicates strong momentum.
Industry
- 🏭 [Oil & Gas Sector](ca://s?q=India_oil_and_gas_industry): Industry PE at 28.6, showing higher valuation compared to OIL.
- 📊 [Energy Demand](ca://s?q=India_energy_consumption_growth): Rising energy demand in India supports long-term sector growth.
Conclusion
⚖️ Oil India’s fundamentals are decent with improving profits, moderate debt, and attractive valuation relative to peers. While returns are moderate and growth concerns persist, dividend yield and government backing provide stability. Entry is advisable near ₹460–490, making it a reasonable candidate for long-term holding, especially for investors seeking value and income.