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Oil India Ltd

NSE: OIL BSE: 533106

483.90

(2.21%)

Tue, 03 Mar 2026, 00:09 pm

Oil India Analysis

dividend

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Pros

  • Dividends per share have increased over the past 10 years.
  • Dividends paid are covered by earnings (1.9x coverage).
  • Dividends after 3 years are expected to be well covered by earnings (3.6x coverage).
  • Oil India's pays a higher dividend yield than the bottom 25% of dividend payers in India (0.76%).
  • Oil India's dividend is above the markets top 25% of dividend payers in India (3.08%).
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Cons

  • Dividends per share have been volatile in the past 10 years (annual drop of over 20%).

future

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Pros

  • Oil India's earnings are expected to exceed the low risk growth rate next year.
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Cons

  • Cash flow for Oil India is expected to decrease over the next 2 years.
  • Oil India's earnings are expected to decrease over the next 1-3 years, this is not considered high growth.
  • Oil India's earnings are expected to decrease over the next 1-3 years, this is below the India market average.
  • Oil India's earnings are expected to decrease over the next 1-3 years, this is below the low risk savings rate of 7.2%.
  • Oil India's earnings are expected to decrease over the next 3 years.
  • Oil India's net income is expected to increase but not above the 50% threshold in 2 years time.
  • Oil India is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
  • Performance (ROE) is not expected to exceed the current IN Oil and Gas industry average.
  • A decline in Oil India's performance (ROE) is expected over the next 3 years.
  • Oil India's revenue is expected to decrease over the next 2 years.
  • Oil India's revenue is expected to decrease over the next 1-3 years, this is not considered high growth.
  • Oil India's revenues are expected to decrease over the next 1-3 years, this is below the India market average.

health

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Pros

  • Oil India is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Oil India is profitable, therefore cash runway is not a concern.
  • Oil India is profitable, therefore cash runway is not a concern.
  • Debt is well covered by operating cash flow (51.4%, greater than 20% of total debt).
  • Oil India earns more interest than it pays, coverage of interest payments is not a concern.
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Cons

  • Debt is not covered by short term assets, assets are 0.7x debt.
  • Oil India's long term commitments exceed its cash and other short term assets.
  • The level of debt compared to net worth has increased over the past 5 years (43.8% vs 44.7% today).
  • Oil India's level of debt (44.7%) compared to net worth is high (greater than 40%).
  • High level of physical assets or inventory.

management

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Pros

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    Cons

    • The average tenure for the Oil India board of directors is less than 3 years, this suggests a new board.
    • The average tenure for the Oil India management team is less than 2 years, this suggests a new team.

    misc

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    Pros

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      Cons

      • Oil India has significant price volatility in the past 3 months.

      past

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      Pros

      • Oil India's year on year earnings growth rate has been positive over the past 5 years, however the most recent earnings are below average.
      • Oil India has significantly improved its use of capital last year versus 3 years ago (Return on Capital Employed).
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      Cons

      • Oil India's 1-year earnings growth is negative, it can't be compared to the 5-year average.
      • Oil India used its assets less efficiently than the IN Oil and Gas industry average last year based on Return on Assets.
      • Oil India has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
      • Oil India's 1-year earnings growth is negative, it can't be compared to the IN Oil and Gas industry average.

      value

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      Pros

      • Oil India is good value based on assets compared to the IN Oil and Gas industry average.
      • Oil India is good value based on earnings compared to the IN Oil and Gas industry average.
      • Oil India is good value based on earnings compared to the India market.
      • NSEI:OIL is up 17.9% outperforming the Oil and Gas industry which returned 10.5% over the past month.
      • NSEI:OIL is up 17.9% outperforming the market in India which returned 8% over the past month.
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      Cons

      • Oil India's share price is above the future cash flow value, it's not available at a moderate discount (< 20%).
      • Oil India's share price is above the future cash flow value, it's not available at a substantial discount (< 40%).
      • Oil India earnings are not expected to grow next year, we can't assess if its growth is good value.
      • OIL underperformed the Oil and Gas industry which returned -4% over the past year.
      • OIL underperformed the Market in India which returned -14.5% over the past year.

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