Oil India shares continue to surge, hit new 52-week high; stock jumps over 42% in year-to-date

Oil India Limited share prices hit a new 52-week high on Wednesday and were trading up by around 2.5 per cent on the BSE at Rs 154.8 per share. The stock prices have been climbing since the announcement of its Q4FY21 results on Monday. 

India’s second-largest state oil explorer — Oil India on Monday reported an eight per cent decline in the net profit to Rs 847.56 crore in the March-ended quarter of the financial year 2020-2021, on the back of lower crude oil production. It had reported Rs 925.6 crore profit in the same period a year ago. 

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It received $ 59.80 for every barrel of crude oil in the quarter, up from $ 5.18 a year back. But oil production fell by 5.28 per cent to 0.72 million tonnes in January-March 2021.  

At around 10:10 am, the shares of Oil India were trading 1.75 per cent higher to Rs 153.85 per share, near day’s high level as compared to Rs 151.20 per share previous close. 

The stock since Monday has surged over three and a half per cent, while soared around five per cent in the last five sessions. It jumped almost 20 per cent in the last one month and spurted over 42 per cent since year-to-date. 

Sharekhan maintains a Hold on Oil India with a target of Rs 165 per share given weak fundamental with muted oil and gas production profile, low domestic gas price, high capex and negative value creation from Mozambique investment; Q4 operating profit sharply below estimates on high cost. 

While CLSA upgrades Oil India to Buy as it finds company the only midcap to offer positive leverage to crude, expecting FY22-23 EPS estimates by 29-38 per cent and see a 120 per cent rise in formula-based domestic gas price over the next nine months. 

During its earnings announcement, the company’s board also recommended a final dividend of Rs 1.50 per share for 2020-21. It had earlier paid an interim dividend of Rs 3.50 per share in February.