Oil India Share Price In Green As Maharatna PSU Signs MoU For Clean Energy Projects | Buy or Sell?

Shares of state-owned Oil India Limited surged during Monday's intraday trading session, a day after it announced a Memorandum of Understanding (MoU) with the Government of Haryana for four integrated Waste-to-Clean-Energy projects.

Oil India's share price was trading higher in the first half of Monday's trading session but erased gains at the time of writing the story. The Maharatna PSU stock was down 0.04% at Rs 483.25 per share on BSE, with a market capitalisation of Rs 78,605.82 crore at 12:34 pm on Monday.

Oil India Share Price Recommendation

Higher Oil & Gas realisations and GRMs, along with a sharp rise in NWG sales and NRL capacity, would boost the outlook for the firm, according to Emkay Global brokerage firm. "OIL already achieved the 4mmtpa crude output target of Mission 4+, with the current rate at ~11ktpd. Management expects a further uptick to 4.2mmtpa by FY29. OIL has already achieved the 4 mmtpa crude output target of Mission 4+, with the current rate at ~11 ktpd. Management expects a further uptick to 4.2mmtpa by FY29," stated the brokerage in its report.

Oil India Share Price Target

The brokerage maintained a 'Buy' rating for the stock with a target price of Rs 625 per share. ". We estimate OIL's consolidated ROIC to increase from 10% in FY26 to ~15% in FY27-29E and FCFF yield to rise from negative 8-9% in FY26-27 to +4-6% in FY28-29E as the major capex cycle ends. We raise FY27E EPS by 10% and retain FY28/29E EPS."

Oil India MoU Update

Oil India's subsidiary, OIL Green Energy Limited, signed MoUs with four Municipalities of
Haryana, ie Gurugram, Faridabad, Hisar and Ambala, for development of Integrated
CBG and Waste-to-Energy Projects across the respective clusters.

The four projects are proposed across the Hisar (500 TPD), Ambala (900 TPD), Faridabad (1,600 TPD) and Gurugram (2,000 TPD) clusters, as per the company press release issued on Sunday. Together, the facilities will have the capacity to scientifically process 5,000 tonnes of municipal solid waste per day and are expected to produce 70-75 TPD of Compressed Biogas (CBG) along with 50 MW of green power.

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