Buy Oil India, target price Rs 110: Motilal Oswal

Motilal Oswal has given a buy rating to Oil India Ltd with a target price of Rs 110. The share price moved down by -0.99 per cent from its previous close of Rs 95.65. The stock’s last traded price is Rs 94.70.

Oil India’s 4QFY20 oil and gas sales were in line with brokerage estimates. However, EBITDA (excluding impairment) was 5 per cent lower than estimates. The company recorded impairment and write offs of Rs 17.8 billion during the quarter. For FY20, oil sales were down 5 per cent year on year to 3.06 mmt and gas sales were down 4 per cent year on year to 2.4bcm, as operations were hampered due to (a) CAB (Citizen Amendment Bill) related protest for 10-15 days, and (b) lockdown in the last week of March. The company stated that current production is at ~90 per cent of the normal levels.