Mumbai
Shares of Oil India surged 5 per cent to Rs 261.45 on the BSE in Monday’s intra-day trade, in an otherwise weak market, as Brent crude oil prices rose after Saudi Arabia hiked prices for its crude sales in July. In comparison, the S&P BSE Sensex was down 0.45 per cent at 55,519 points at 10:09 AM.
The stock of Oil India was trading close to its 52-week high level of Rs 267.70, touched on October 1, 2021. In the past one week, it has outperformed the market by gaining 17 per cent as compared to 0.61 per cent decline in the S&P BSE Sensex.
According to source report, oil prices rose more than $2 in early trade on Monday after Saudi Arabia raised prices sharply for its crude sales in July, an indicator of how tight supply is even after OPEC+ agreed to accelerate its output increases over the next two months.
Meanwhile, Oil India had reported strong earnings in March 2022 quarter (Q4FY22), as turnover and profit after tax (PAT) increased by 74 per cent and 92 per cent, respectively. The company reported its highest-ever quarterly net profit of Rs 1,630 crore in Q4FY22, as it received nearly $100 a barrel price for oil – produced and sold. The net profit during quarter almost doubled, as compared to Rs 847.56 crore profit in the same period last year.
Analysts at HDFC Securities believe that Oil India is a favourable buy after an increase in crude price realisation and improvement in domestic gas price.
