The shares of the Oil & Gas stock specializing in exploration, development, and production of crude oil & natural gas, transportation of crude oil, and production of LPG are in focus upon winning oil and gas exploration blocks bid under OALP Round IX.
Price action
With a market capitalization of Rs. 59,907.96 crores on Wednesday, the shares of Oil India Limited jumped upto 2.3 percent, making a high of Rs. 374.85 per share compared to its previous closing price of Rs. 366.40 per share.
What Happened
Oil India Limited (OIL), a major government-owned energy company, has successfully secured all 9 oil and gas blocks it bid for under the OALP Round IX, increasing its exploration area by 85 percent from 60,000 sq.km to 110,000 sq.km.
This includes challenging offshore regions and new areas like the Cambay Basin and Meghalaya. The achievement highlights OIL’s strong strategy, technical expertise, and support from government policies aimed at boosting domestic energy production. This move reflects OIL’s commitment to energy security and expanding into high-potential, unexplored regions of India.
About the Company
Oil India Limited (OIL) is a Maharatna Central Public Sector Enterprise under the Ministry of Petroleum and Natural Gas, Government of India. It is a leading Indian oil and gas company engaged in the exploration, production, and transportation of crude oil and natural gas. Headquartered in Duliajan, Assam, OIL operates both onshore and offshore assets across India and abroad.
Production Guidance
Oil India targets an oil production of 3.5 MMT and natural gas production of 3.3 BCM by FY 2025, and the company aims to increase output to 4 MMT of oil and 5 BCM of gas by FY 2027, reflecting its focus on long-term growth in energy production.
Key Insights
The company’s PEG ratio of 0.33 indicates it may be undervalued compared to its growth potential. It has a low debt-to-equity ratio of 0.53, showing financial stability. Additionally, its average return on equity (ROE) of 16.13 percent over the last three years reflects strong profitability.
Financials
The company’s revenue declined by 15.26 percent from Rs. 10,194 crore to Rs. 8,639.01 crore in Q3FY24-25. Meanwhile, Net profit declined from Rs. 2,347.12 crore to Rs. 1,338.85 crore during the same period.
Written by Sridhar J
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