Oil India (OIL)

FairStock Score: 50/100 — MIXED

Score breakdown: P/E: 2/3 · ROCE: 1/2 · Growth: 0/2 · Dividend: 1/1

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I approach Oil India with Graham's caution and Buffett's preference for durable economics. It is an oil exploration and production business, so I must treat it as cyclical, not a compounder. At ₹468.50, market cap ₹76,207 Cr, P/E 9.12 and P/B 1.31, the market is not paying a rich multiple. Book value is ₹356.62, dividend yield 4.06%, and promoter holding 56.66% give some comfort. Returns are moderate: ROE 11.72% and ROCE 12.89%, not the high-return hallmark I seek. Debt/equity 0.59 is manageable but not fortress-like. The latest quarter showed sales ₹8,330 Cr and net profit ₹1,436 Cr, while sales growth 57.70% and profit growth 91.40% are impressive. However, 5-year revenue CAGR is only 11.24%, so the recent surge may be cyclical, not structural. Free cash flow is negative ₹2,182 Cr, and Altman Z-Score 1.54 suggests balance-sheet stress. EV/EBITDA of 200.70 is a red flag I cannot ignore. On valuation, Graham Number ₹496.72 gives only 2.58% margin of safety, so price is close to formula value. Piotroski F-Score 6/9 is decent. FairStock Score 50/100 is mixed. With a 52-week range of ₹395.60 to ₹531.00, I see commodity-like swings and no evidence of a wide moat. Graham would demand a larger discount for a cyclical E&P. Buffett would ask whether the 4.06% dividend is covered by durable cash flows; the negative FCF makes that uncertain from the data. I would call it a cyclical, asset-backed dividend play, not a wonderful business at a wonderful price. I'd want a wider discount and positive FCF before buying.

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Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer