Oil India stock rating raised to hold by CLSA

Published 10/02/2025, 07:20
Oil India stock rating raised to hold by CLSA

On Monday, CLSA analysts revised their stance on Oil India (NSE:OILI) Ltd. (OINL:IN), lifting the stock rating from Underperform to Hold, while maintaining a price target of INR 450.00. The adjustment follows a notable decline in the company’s share price.

Oil India reported a third-quarter profit that fell short of expectations by 9%, primarily due to elevated costs, although crude and gas sales surpassed estimates. The company’s management highlighted in the post-earnings call that achieving significant production growth hinges on the commencement of major initiatives such as the northeastern gas grid and the NRL expansion, which are anticipated to take more than 18 to 24 months to become operational.

In response to the latest financial results and management’s insights, CLSA has modified its earnings per share (EPS) forecasts for Oil India, reducing projections for fiscal years 2025, 2026, and 2027 by 11%, 3%, and increasing by 3%, respectively. Despite these adjustments, the firm’s price target remains unchanged.

The decision to upgrade Oil India to a Hold rating is based on the potential for a 6% upside, as indicated by the current price target in relation to the recent drop in the stock’s price. This revised rating suggests that CLSA now views Oil India’s stock as a more neutral investment, with balanced risk-reward dynamics following the recent market movements.

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