Oil India Ltd could be a great buy if oil prices continue to rise

Oil India Ltd could be a great buy if oil prices continue to rise

by 5paisa Research Team Last Updated: 2022-06-22T14:01:36+05:30

Oil India Ltd is trading strong on June 22 2022.

The Indian equity market is unable to trade above its March 2022 lows which it broke down last week. On June 22 2022, at 1 pm, S&P BSE Sensex is trading at 51860 with 1.28% downward action today.

All the indices are trading in the red. Metal has hit the hardest, S&P BSE Metal index trading with a 4.32% loss. Despite S&P Oil & Gas index trading 2.2% down, the shares of Oil India Ltd were trading with more than a 2% gain early on the day. However, later, started trading negatively.

Indian oil refineries are benefited from India’s increase in oil imports from Russia, which is available at a discount price compared to global markets. If this trend continues, one can benefit by betting on Oil India Limited shares as the company is the second-largest national oil and gas company in India with strong financials. The company has a market capitalisation of Rs 25,570 crore.

Oil India Ltd is involved in the business of refining, petrochemicals, oil & gas transportation, city gas distribution, renewable energy, and other green energy initiatives. The 56.66% stake of the company is owned by the Government of India. FII and DII investors hold 11.23% and 16.84% ownership in the company. The company has a high dividend yield of 3.92% as of the March FY22 period ending.

The company also delivered strong Q4 results. The revenue was recorded at Rs 8870 crore, a 36% YOY growth. The net profit of the company more than doubled from last year’s Q4 figure and stood at Rs 2118 crore.

As per the March period ending, the company has ROE and ROCE of 20.7% and 22%, respectively. The shares of the company are trading below the book value of Rs 282 and with a low PE of 4.56x. The stock has a 52-week high and low of Rs 306 and Rs 146.4, respectively.


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Investment/Trading in securities Market is subject to market risk, past performance is not a guarantee of future performance. The risk of loss in trading and investment in Securities markets including Equites and Derivatives can be substantial.

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