Showing posts with label Oil India. Show all posts
Showing posts with label Oil India. Show all posts

Monday, August 29, 2011

Oil India Buy




The upstream PSU oil company, Oil India, has benefited from an uptick in oil and gas production and lower subsidy burden. The last quarter saw its profitability improve 70% over the corresponding period last year due to the 20% jump in net realisation and 18% growth in production. Compare this with its peers in the upstream space, ONGC and Gail, which reported a profit growth of only 12% as they struggle to improve productivity.

While gas production remained muted throughout 2010-11 due to environmental issues, the company clocked a 16% rise in gas production to 642 million cubic meters in the previous quarter, along with a 20% jump in crude oil production to 0.96 million tonnes. The net realisation improved to $59.6/bbl on account of lower subsidy and higher crude oil prices. Its lower leverage and healthy balance sheet also put Oil India in a good position vis-a-vis most of its peers.

However, clarity is awaited from the government on the subsidy burden that is to be shared by upstream oil companies in the future. Oil India is likely to suffer if the government decides to fix the subsidy sharing burden on the basis of volumes rather than profits.



The scrips is relatively safe bet with limited down risk. The track of the scrip is given below.

Time Span Price Change %Change
Today 1,315.10 8.05 0.61
Week 1,302.50 4.55 0.34
Month 1,257.40 49.65 3.94
Three Months 1,268.05 39.00 3.07
Six Months 1,217.35 89.70 7.36
One Year 1,442.50 -135.45 -9.38

Our Recommendation :

Buy on declines to around Rs. 1250 levels on a weak day and hold for long term.

Bought to you by

Ingenious Investor
Equity Research Division

Ravina Consulting
Pattamal Plaza
3rd Cross Kamanahalli
BANGALORE 560084

For Free Stock Advise + Ideas
sowmya@ravinaconsulting.com
Talk / SMS 08105737966

Read - www.ingeniousinvestor.blogspot.com
Follow us - www.twitter.com/smartinvestor

Sunday, August 28, 2011

Oil India - Buy on correction




Oil India is the smaller peer of ONGC, which endows it with twin benefits, it enjoys the same traits as its larger peer when it comes to being defensive, but its smaller size means it can grow faster. It has steadily improved output in the past few quarters and is looking for overseas acquisitions. Being restricted to Northeast India was a major drawback, but it is expanding in other parts of India and overseas.


The scrip has under performed during the last 1 year as per the details given below.


Time Span Price Change %Change
Today 1,307.05 -1.30 -0.09
Week 1,302.50 5.85 0.44
Month 1,257.40 50.95 4.05
Three Months 1,268.05 40.30 3.17
Six Months 1,217.35 91.00 7.47
One Year 1,442.50 -134.15 -9.29


Investors should add this scrip to your portfolio on any declines to Rs.1200 and hold for a target price of Rs.1800/-


Bought to you by

Ingenious Investor
Equity Research Division

Ravina Consulting
Pattamal Plaza
3rd Cross Kamanahalli
BANGALORE 560084

For Free Stock Advise + Ideas
sowmya@ravinaconsulting.com
Talk / SMS 08105737966

Read - www.ingeniousinvestor.blogspot.com
Follow us - www.twitter.com/smartinvestor