Maharatna CPSE Oil India To Trade Ex-Dividend Tomorrow: Buy, Sell Or Hold?

Oil India Ltd. (OIL), a Maharatna company as well as the second-largest national oil and gas company in India, is a government-owned firm under the Ministry of Petroleum and Natural Gas. The company has declared a final dividend of Rs 5.50 per share for FY23 and as per the data of BSE the ex-dividend date is falling on 25th August.

OIL Dividend

The Board of Directors of OIL has approved the payment of the final dividend 2022-23 @ Rs.5.5l- per share (55% of the paid-up capital) on the equity shares of the company subject to the approval of the members of the company at the AGM.

"Final Dividend, if approved at the AGM, will be paid/dispatched within the stipulated period of 30 days of its approval to those Members whose names appear on the Company's Register of Members and as per beneficial owners' position received from NSDL & CDSL as at the close of working hours on Friday, 25th August,2023 [Record Date]," said OIL in a stock exchange filing.

Oil India has announced an equity dividend of 200.00% at a face value of Rs 10, or Rs 20 per share, for FY23. This generates a dividend of yield 6.85% at the current share price of Rs 290.85. The company has a solid track record of dividend declarations during the past five years. According to statistics from Trendlyne, Oil India Ltd. has issued 33 dividends since February 10, 2010.

Oil India Financials

In the first quarter of the current fiscal year, the company's net profit grew by 4% YoY to Rs 1,613.34 crore from Rs 1,555.49 crore in the same period last year. EBITDA margin grew to 53.49 percent for the fiscal year that ended on June 30, 2023, up from 44.76 percent in Q1FY23, a 19.51 percent rise. The company received USD 76.85 for each barrel of crude oil produced as opposed to USD 112.73 achieved the previous year. Compared to Rs 5,964 crore in the same quarter last year, OIL's revenue from operations decreased by 22% to Rs 4,644 crore in Q1FY24.

Oil India Share Price Target

Kkunal Parar, Vice President, Research and Development, Choice Broking said, "The script had been the strongest contributor in the advance of the nifty Oil & Gas index, Currently, the script had done a breakout of cup & handle chart pattern after 1 year on weekly charts & it is sustaining above its breakout level strongly, the script had been trading above all its averages which is a bullish sign and the probability of continuation of the trend is high."

"Currently the script is trading near its major resistance of 302-305 levels, once the script starts to sustain above 305 levels then strong momentum on the upside can continue and we may see upside momentum till 333-335 levels and any dip towards 275-280 levels is a strong Retest Zone," said Kkunal Parar.

"As per indicators Rsi on all three higher time frames is trading above 60 levels which shows strong momentum in the script and also the script trading above its 20 ema on all its three higher time frames which shows the upward trend in the script and any dip towards 275-280 levels is a strong accumulation level, so our view is Buy on Dips in Oil India for further upside momentum for the Targets of 335 and our view will negate below 255 Levels," said Kkunal Parar

While writing this copy the stock was trading at Rs Rs 291.15 apiece up by 0.07% from the previous close of Rs 290.95. The stock made a 52-week-high of Rs 296.95 on (23/08/2023) and a 52-week-low of Rs 168.30 on (28/09/2022).

Disclaimer

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