Oil India shares jump over 5%. What made Emkay upgrade the stock after Q1 results
Oil India shares jumped over 5% after strong Q1FY27 results prompted Emkay Global to upgrade the stock to ‘Buy’. The brokerage cited attractive valuations, higher crude production and improving gas evacuation prospects. Elara Capital also retained its ‘Buy’ rating, while Nomura and Motilal Oswal maintained neutral views on the stock.
Oil India shares experienced a significant surge of over 5%, rising to Rs 478.80 per share on the Bombay Stock Exchange (BSE). This boost followed multiple brokerages upgrading their ratings for the Indian public sector undertaking (PSU) company. Leading the charge was Emkay Global, which raised the stock's rating from "Add" to "Buy," maintaining the target price at Rs 575.
Other firms, such as Elara Capital and Nomura, also held a "Buy" rating and a "Neutral" rating, respectively, with target prices of Rs 672 and Rs 500. These bullish assessments came after the company reported exceptional Q1FY27 earnings, with a record-high standalone profit after tax of Rs 2,870 crore, a substantial 2.5 times year-over-year growth.
Oil India's subsidiary, Numaligarh Refinery Limited (NRL), also saw a remarkable 167% increase in profit after tax, reaching Rs 1,305 crore in Q1FY27, reflecting excellent performance despite facing windfall taxes and lower excise duty challenges. Analysts believe that easing natural gas production bottlenecks and the expansion of NRL's capacity by approximately 1.5 mmscmd by Q3 FY28 will further bolster the stock's prospects.
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