Rs 2.5/Sh Dividend, 126.7% YTD Gain: Oil PSU Declines 16.14%, Buy For TP Rs 766

Oil India Ltd shares witnessed sharp rally of 6.20% on BSE on October 4, 2024. Last trading price of Oil India shares on BSE is Rs 572.25 per share. Oil India shares witnessed decline of 16.14% in last 1-month and gained 191% in last 1-month. The company's market capitalization stood at Rs 93,082.63 crore. The ROE of Oil India is 12.25 and PE is 11.48. Earlier this year, Oil India on May 20 declared 1:2 bonus share and a final dividend of Rs 2.50 per share for FY 2023-24. It fixed the record date for 1:2 bonus issue as July 2, 2024 and ex-dividend date was set as August 30, 2024. Check details below:

Should You Buy or Sell Oil India Shares? According to A R Ramachandran, Independent SEBI Research Analyst, "Oil India is bearish on the Daily charts with strong resistance at 590. A Daily close below support of 512 could lead to target of 453 in the near term."

Meanwhile, Prabhudas Lilladher recommended buy call for Oil India shares with a target price of Rs 766 per share. On a conservative basis, the brokerage firm builds in 8 per cent and 16 per cent volume CAGR over FY24-26 to 3.9mmt of oil and 4.3bcm of gas, respectively, by FY26.

Elara Capital assigned buy call to OIL with a target price of Rs 780 per share amid higher FY26E EV/EBITDA assumption at 10.0x (from 7.0x), pushed by prospects of robust production growth in the next five years.

Oil India Shares Performance: Oil India shares rallied 38% in last 6-months, soared 366% in last 2-years, and surged 255% in last 3-years. Oil India shares witnessed surge of 496% in last 5-years. The 52-week high price of Oil India share on BSE is Rs 767.30 apiece (as on 30/08/2024) and 52-week low price is Rs 193.73 per share (as on 05/10/2023), respectively.

LIC Stake In Oil India: Life Insurance Corporation Of India (LIC) has 7.34% stake in Oil India with 119,435,340 shares of the company as of June 2024 quarter.

Oil India Declares Bonus Share: The BSE filing OF Oil India dated May 20 said, "Recommended issue of Bonus Shares in the ratio of 1:2 i.e. 01 (one) equity share of Rs. 10/- each for every 02 (Two) existing equity shares of Rs. 10/- each fully paid up subject to the approval of shareholders through Postal Ballot [E-Voting]. The Board has fixed Tuesday, 02nd July, 2024 as Record Date to determine the eligibility of shareholders to receive bonus shares."

Oil India Dividend: The May 20 BSE filing also added, "It is further informed that the Board has recommended a final dividend of Rs. 3.75 per equity share having face value of Rs. 10/- each (pre-bonus), which translates into final dividend of Rs. 2.50 per equity share having face value of Rs. 10/- each (post-bonus) for financial year 2023-24, subject to the approval of the shareholders of the Company. The final dividend would be paid within 30 days from the date of declaration at the AGM. The final dividend is in addition to the Interim Dividend of Rs. 3.50/- (pre-bonus) and second Interim Dividend of Rs. 8.50/- (pre-bonus) paid for the financial year 2023-24.

Disclaimer:

The stock has been picked from the brokerage report of Prabhudas Lilladher, Elara Capital, and A R Ramachandran. Greynium Information Technologies, the Author, and the respective Brokerage House are not liable for any losses caused as a result of decisions based on the article. Goodreturns.in advises users to check with certified experts before taking any investment decision.