With Dividend Yield At 7% Maharatna Company Sets Record Date For 55% Dividend

Oil India Limited (OIL), which recently received Maharatna status from the Indian government, has announced its 55% FY23 final dividend. For the purpose of the same record date has been also finalized. Along with BHEL, BPCL, CIL, GAIL, HPCL, IOCL, NTPC, ONGC, PFC, POWERGRID, RECL, and SAIL, OIL has become the 13th Maharatna CPSE in the nation.

Oil India Dividend

"Register of Members and Share Transfer Books of the Company will remain closed from 26th August, 2023 to 09th September, 2023 (both days inclusive) for the purpose of AGM and for ascertaining the eligibility of members for payment of Final Dividend 2022-23 @ Rs.5.5/- per share (55% of the paid-up capital) on the equity shares of the Company subject to 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 the financial year ended March 2023. This provides a dividend yield of 7.17% at the current share price of Rs 277.75. The company has a solid track record of dividend declarations during the past five years. Since February 10, 2010, Oil India Ltd. has issued 32 dividends, according to Trendlyne statistics.

Oil India Result

In comparison to a consolidated net profit of Rs 2,805.16 crore for the same time a year ago, the company reported a net profit of Rs 1,426.6 crore for the first quarter of the current financial year. For the fiscal year that ended on June 30, 2023, the company's EBITDA margin increased by 19.51 percentage points to 53.49 percent from 44.76 percent during the year-ago quarter. EBITDA, or earnings before interest, taxes, depreciation, and amortization, was Rs 2,277 crore for Q1FY24 compared to Rs 4,874 crore in Q1FY23. According to a regulatory filing, its revenue for the quarter ended June 30 fell by 44.6% on a yearly basis to Rs 6,408.8 crore during the quarter under review.

Oil India Share Price Target

Post Q1 results of Oil India, brokerage firm ICICI Securities has maintained a buy call on the stock for a target price of INR 356. "We cut our earnings estimates for FY24E / FY25E EPS by 7.5% / 2% respectively owing to lower estimates for NRL (due to the sharp dip in Q1 earnings). Yet, our target price for the stock reduces only by 3.7% and still implies a material 29% upside from CMP. At current levels, valuations are at 6.1x FY25E EPS and ~5.0x FY25E EV/EBITDA (on consolidated basis), which we think remain attractive. We value OIL using SoTP methodology, with DCF used for the upstream segment, EV/EBITDA for NRL earnings, EV/boe for the holdings in Mozambique and Russia, and investment in IOCL valued at 20% discount to CMP - delivering a target price of INR 356/sh (prior: INR 370)," said ICICI Sec in a note.

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