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Check Before You Invest : Oil India Ltd

BSE: 533106 NSE: OIL ISIN: INE274J01014
  |   Sector:  Oil & Gas   |   Industry:  Oil Exploration

Snapshot

Q.1 Which industry/sub-sector does Oil India Ltd belong to?
Oil India Ltd belongs to the Oil & Gas sector, operating specifically within the Oil Exploration segment.
Q.2 Is Oil India Ltd a good quality company?
Oil India Ltd is a good quality company, based on a consistently good 10 year financial track record.
Q.3 Is Oil India Ltd undervalued or overvalued?
Oil India Ltd appears Overvalued, as its key valuation ratios are above with their past averages.
Q.4 Is Oil India Ltd a good buy now?
Oil India Ltd is a neutral opportunity now, based on stable price trend analysis suggesting prices may move sideways. However, you need to check its quality and valuation before making a decision

Performance Analysis

Q.1 Revenue growth of Oil India Ltd?
Oil India Ltd revenue growth is 3% for FY-2025 , which is below its 5 year CAGR of 12% , indicating slower growth.
Q.2 Gross Profit margin of Oil India Ltd?
Oil India Ltd Gross profit margin which is the profit after deduction of direct costs, is 44.2% for FY-2025 , which is below its 5 year median of 44.6% , indicating decreasing margins.
Q.3 Operating Profit Margin of Oil India Ltd?
Oil India Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 42.01% for FY-2025 , which is in line with its 5 year median of 42.01% indicating stable margins.
Q.4 Net Profit Margin of Oil India Ltd?
Oil India Ltd Net Profit Margin is 28.66% for FY-2025 , is above with its 5 year median of 26.79%, indicating increasing margins.
Current Level Historic Median
Gross Profit Margin 44.2 44.6
Operating Profit Margin 42.01 42.01
Net Profit Margin 28.66 26.79
Q.5 Return on Asset of Oil India Ltd?
Oil India Ltd Return on Asset is 8.85%, which is in line with its 5 year historical median of 8.85%, indicating stable asset utilization efficiency.
Q.6 Return on Equity (ROE) of Oil India Ltd?
Oil India Ltd Return on equity is 13.65% for FY-2025 , which is below its historical median of 13.86%, indicating the business is making worse use of its shareholders capital.
Q.7 Return on capital employed (ROCE) of Oil India Ltd?
Oil India Ltd Return on capital employed is 15.43% for FY-2025 , which is above its estimated weighted average cost of capital(WACC) 11.25%, indicating value creation.
Q.8 Cash conversion cycle of Oil India Ltd?
Oil India Ltd Cash conversion cycle is 34 days, above its historical median of 30 days, indicating deteriorated working capital management. However, you need to compare this with its peers in the industry.
Current Level Historic Median
Asset Turnover 0.32 0.32
ROE 13.65 13.86
ROCE 15.43 14.86
Cash Conversion Cycle 34 days 30 days
Q.9 Debt to Equity ratio of Oil India Ltd?
Oil India Ltd Debt-to-Equity ratio is 0.27 , which is lower with the industry average of 0.32 , indicating lower debt levels in the industry.
Q.10 Debt to cash flow from operations of Oil India Ltd?
Oil India Ltd Debt to cash flow from operations is 1.48 , which is at a healthy level.

Ownership & governance

Q.1 Promoter shareholding and pledge status of Oil India Ltd?
Promoters hold 56.66% of the Oil India Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 Revenue growth of Oil India Ltd vs industry peers?
Oil India Ltd revenue CAGR is 11.96% , compared to the industry median CAGR of 11.96% , indicating slower growth and losing its market share.
Profit Metrics
Current Level Industry Median
Revenue 21,336.6 20,724.6
Gross Profit 9,431 9,431
Operating Profit 8,765 8,765
Net Profit 6,114 5,552
Operating Efficiency
Current Level Industry Median
Asset Turnover 0.32 0.32
ROE 13.65 13.86
ROCE 15.43 14.86
Cash Conversion Cycle (days) 34.14 30

Valuation & price assessment

Q.1 Stock return of Oil India Ltd over the last decade?
Over the last 9 year(s), the stock has delivered a CAGR of 16% based on the current price.
Q.2 What return has the stock given over the last decade?
9Y 5Y 3Y 1Y
Share Price 16% 42.8% 38.9% 22.3%
Q.3 Valuation ratios of Oil India Ltd vs historical?
The current P/E is higher that its historical median.
Q.4 How do the current valuation ratios measure up against the historic numbers and the current industry numbers?
Valuation Ratios Current Historic Median Industry Median
Price to Earnings 17.66 6.17 11.98
Price to Book 1.53 0.44 1.32
Price to Sales 3.6 1.01 3.25
EV to EBITDA 9.94 5.35 7.77

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