Long Term Buy Call For Oil India

Oil-IndiaStock market analyst Nalin Shah of NVS Brokerage has maintained 'buy' rating on Oil India Limited stock with long-term target of Rs 1850.

According to analyst, the said target can be achieved in a period of 12 months.

Today, the stock of the company opened at Rs 1417.65 on the Bombay Stock Exchange (BSE).

The share price has seen a 52-week high of Rs 1635 and a low of Rs 1104 on BSE.

As per announcement by the department of Petroleum and Natural Gas, oil marketing companies (OMCs) would increase supplies of LPG in order to cover the whole population of the country.

S Sundareshan, petroleum secretary stated, "It is a natural compulsion to provide LPG to all. LPG has to go to every household and 100 per cent of India has to be covered beyond 2015. This is the vision you must have."

Oil India has registered a growth of 26.78% in its net profit after tax (PAT), which stood at Rs 9,160.30 million for the three month period ended September 30, 2010.

The company had net profit after tax of Rs 7,225.60 million during the same period of last year (Sept. 30, 2009).

Company's total income grew 10.71% to Rs 26,332.10 million for the three month period ended Sept 30 as against Rs 23,784.20 million for the three month period ended September 2009.