💸India’s oldest oil explorer is gushing profits, but trading like a PSU stepchild. Is this the most ignored 13% ROE stock in Nifty 500?
⚡ At a Glance
Oil India Ltd (OIL) clocked ₹7,039 Cr PAT in FY25, with a 115% dividend and capex of ₹8,600 Cr — yet trades at a P/E of just 11.7. With stable crude production, gas ramp-ups, and a Maharatna tag, is it finally ready for a re-rating… or is the PSU curse stronger than oil itself?
🛢️ 1. What Exactly Does Oil India Do?
Founded in 1959 and Maharatna-fied in 2023, Oil India is ONGC’s lesser-hyped cousin, doing all the hard work with half the headlines.
Core Ops:
- 🚜Exploration
- & Production: Crude oil + Natural gas
- 🚚Transportation: Pipelines for crude and gas
- 🔥LPG Production
- ☀️Renewable Energy: Solar, wind, upcoming green hydrogen initiatives
📍 Assets in Assam, Arunachal, Mizoram, Rajasthan, and overseas blocks in Russia, Venezuela, Libya, Mozambique (because why not diversify into geopolitical chaos?).
📈 2. Financial Performance: Solid But Ignored
| FY | Revenue (₹ Cr) | Net Profit (₹ Cr) | OPM % | ROE % | ROCE % |
|---|---|---|---|---|---|
| FY23 | 36,084 | 9,854 | 42% | 25% | 25% |
| FY24 | 31,749 | 6,980 | 39% | 18% | 18% |
| FY25 | 32,512 | 7,039 | 34% | 13% | 13% |
📉 FY24 saw lower crude realizations, but FY25 held steady.
💰Dividend payout: 115% declared. Still yielding 2.24%, as PSU dividend cheer gets
