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This Navratna stock hits new 52-week high in trade today: Should you buy?


Oil India Ltd (OIL) is a large-cap company with a market capitalization of 32,239 crore that operates in the Gas & Petroleum industry. It is a government-owned enterprise with Navratna status under the administrative supervision of the Ministry of Petroleum and Natural Gas. On the NSE, OIL shares opened today at 280.30 and reached a new all-time high of 306.00. The stock’s previous 52-week high was 301.20, set on 07-Jun-2022. The stocks’ trade volume today was 28,835,734, and after reaching a new 52-week high of 306 on both the BSE and the NSE, the stock today outperformed the sector by more than 3%. On the BSE, the shares of Oil India have risen from 140.65 to the latest trading price of 297.15, representing a multibagger gain of 111.27 per cent in one year, surpassing the Sensex by 105.5 per cent. On a year-to-date (YTD) basis, Oil India shares have risen by 49.70 per cent compared to a 6.53 per cent decline in the Sensex so far in 2022, outperforming the Sensex by 43 per cent.

Based on a new 52-week high of 306 as of 9th June 2022 and a 52-week low of 139.40 as of 10th June 2021, the stock is now trading 2.54 per cent below its 52-week high and 113 per cent above its 52-week low at 298.20 and its current level is an upside gap of 6.48% from its previous close of 280.05. The company’s Board of Directors has proposed a final dividend of 5/- per share for the fiscal year 2021-22, subject to shareholder approval. So, should one buy the stock right now? Let’s see what different brokerage firms have to say.

The brokerage firm Prabhudas Lilladher has said in a note that Oil India is well placed to benefit from rising oil and gas prices and high GRMs and FY25E EBIDTA can increase to Rs210bn (FY22-Rs105bn) on higher volumes. The brokerage has maintained a buy rating on the stock with a target price of 344 per share.

The brokerage company Sharekhan has said in a report that “The recent sharp surge in crude oil prices and expectation of further steep hike in domestic gas prices from October 2022 would drive an 11% CAGR in OIL’s standalone PAT over FY2022-FY2024E and improve RoE to 14.3%. Moreover, the recent stake increase in Numaligarh Refinery Ltd (NRL) could create long-term value for OIL. Hence, we maintain a Buy rating with an unchanged SoTP-based PT of Rs. 290.”

The views and recommendations made above are those of individual analysts or broking companies, and not of Mint.

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