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On Thursday, CLSA analysts adjusted the price target for Oil India (NSE:OILI) Ltd. (OINL:IN) shares to INR420.00, a decrease from the previous INR450.00, while maintaining a Hold (3) rating on the stock. The revision follows Oil India’s standalone fourth-quarter financial year 2025 (4QFY25) net profit, which fell short of CLSA’s expectations by 13%. The underperformance was attributed to increased operational expenses and diminished other income. Despite this, the company’s crude realizations and sales surpassed analyst projections.
The analysts have revised their earnings per share (EPS) forecasts for the fiscal years 2026 and 2027, reducing them by 13% and 8% respectively. This adjustment is due to lowered Brent crude price assumptions, although there is an anticipation of an improvement in global oil prices starting from the second half of financial year 2025.
The reduction in the price target from INR450 to INR420 reflects a marginal 2% downside, leading the analysts to continue with their Hold recommendation for Oil India’s stock. The analysts’ comments provide insight into the factors influencing the updated valuation, including both the operational challenges faced in the recent quarter and the expected market conditions in the near future.
Oil India’s recent financial performance, particularly in the fourth quarter of fiscal year 2025, has been a key factor in CLSA’s reassessment of the company’s stock value. The higher operational expenses and a decrease in other income have had a notable impact on the net profit, prompting the analysts to recalibrate their expectations.
The company’s stock price adjustment is based on a careful analysis of various financial aspects and market trends. The CLSA analysts have taken into account the current state of the company, along with the broader economic indicators that could affect the oil industry and Oil India’s financial health moving forward.
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