Author: Prashant Marathe
Date Published: May 21, 2025
🧾 At a Glance
- Total Income (Q4): ₹9,970.12 Cr
- Net Profit (Q4): ₹1,496.97 Cr
- EPS (Q4): ₹8.05
- CMP: ₹426.25
- EduFair Value: ₹550–₹620
👉 Verdict: A cash-minting PSU priced like a leaking drum.
🛢️ About the Company
Oil India Ltd is India’s second-largest national oil & gas explorer after ONGC. It:
- 🔍 Explores and produces crude oil & natural gas
- 🔌 Runs refineries, pipelines, and gas monetisation infra
- 💰 Owns a stake in Numaligarh Refinery & other strategic assets
This isn’t just a PSU. It’s a dividend-paying monster with energy security upside.
📊 Quarterly Breakdown (FY25)
| Quarter | Revenue (₹ Cr) | Net Profit (₹ Cr) | EPS (₹) |
|---|---|---|---|
| Q1 | 6,001.41 | 1,466.84 | 9.02 |
| Q2 | 6,374.58 | 1,834.07 | 11.27 |
| Q3 | 5,428.29 | 1,221.80 | 7.51 |
| Q4 | 9,970.12 | 1,496.97 | 8.05 |
Full-year EPS = ₹35.85
Net Profit FY25 = ₹6,019.7 Cr
Even with crude prices fluctuating, OIL India is printing money like ONGC used to 10 years ago.
🧠 EduInvesting Take
“Everyone talks about ONGC. But Oil India has the better margins, better dividends, and better runway.”
✅ ROE > 20%
✅ EPS above ₹35
✅ PE ratio under 12
✅ Dividend yield over 4%
You don’t get this combo even in IT midcaps.
It’s not a trading stock. It’s a long-term NAV-backed cash cow.
🧮 EduFair Value Calculation
- EPS FY25 = ₹35.85
- Assign P/E of 15x (energy, high margin)
✅ EduFair Value = ₹550 – ₹620
CMP = ₹426.25 → Undervalued by ~25–45%
🧾 Valuation Table
| Metric | Value |
|---|---|
| CMP | ₹426.25 |
| EPS (FY25) | ₹35.85 |
| P/E (Current) | ~11.89x |
| Fair Value Range | ₹550 – ₹620 |
| Dividend Yield | 4.2% (FY25e) |
| Upside Potential | 25–45% |
⚠️ Risks
- 🌍 Crude price volatility
- 🏛️ PSU pricing and subsidies
- 🔄 Capex/expansion in new energy may compress margin
- 🧾 Limited institutional attention
🛢️ What Makes Oil India Different?
| Feature | ONGC | OIL India |
|---|---|---|
| FY25 EPS | ₹30–₹32 est | ₹35.85 ✅ |
| Dividend Yield | ~3% | ~4.2% ✅ |
| PE Ratio | ~10.5x | ~11.9x |
| Institutional Holding | Higher | Lower |
Retail is still sleeping on this one. That’s opportunity.
🏁 EduFinal Word
Oil India Ltd is:
- Cheap ✅
- Consistent ✅
- Strategic ✅
- Severely underowned ✅
Edu Verdict:
This is not a pump stock. It’s a long-term portfolio essential.
Dividend + valuation + commodity upside = solid SIP candidate.
