Premium Pick Unlocked : 5X Multibagger Stocks As Value Pick · Oil India Ltd · Apr16

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Oil India Ltd.

Value Pick : Summary

About Business :

OIL is a GoI undertaking that is engaged primarily in the businesses of oil and natural gas exploration and production with majority of earnings coming from production. Government of India (President of India ) currently holds a 67.64% stake in OIL.

With its track record of over one century, OIL has built modest proved reserves, primarily in the onshore regions of Assam, Arunachal Pradesh and Rajasthan. It also has many Joint Ventures ( JVs) in NELP (New Exploration Licensing Policy) which are producing or exploring oil.

OIL also has overseas presence with stakes in blocks spread over US, Venezuela, Mozambique, Russia, Libya, Gabon, Yemen, Nigeria, Egypt, Bangladesh, Myanmar and a pipeline project in Sudan.

In nutshell yeh ek bahut bahut bada & robust business hai, the whole thing is so big that it can't be detailed completely in this value pick.

SWOT Analysis :


  • OIL has vast experience in management of its ageing and depleting oil and gas fields
  • If it keeps up the annual turnover constant even then it has oil reserves worth 10-50 years.
  • Bidding on series of NELPs (New Exploration Licensing Policy) & getting allocated too.
  • Strong R&D and patent line-ups.
  • Being a Sarkari company a push to rev up production & getting bureaucracy hurdle cleared with lesser effort is always there.
  • Government passing on benefits of elimination of subsidies directly to OIL & hence profitability is quite stable even with such a steep Crude oil price crash from $100 down to $40 in International Markets in FY15-16.


  • Output price of Oil is directly related to the volatility of Crude in International markets.
  • Sarkari karamchari ke dharne & band. Seriously disrupts working in drilling & extraction.
  • Rapid expansion to international areas & NELP bidding in recent 2-3 years is quite risky in terms of geographical & situational risks.
  • Spending huge amount of funds just to dig up a dry well. It keeps happening & is a serious business risk for Oil.


  • Nearly 80 percent of the crude oil requirement of the country is imported which results in huge drainage of foreign currency & there lies the opportunities.
  • Government of India has initiated various steps like New Exploration Licensing Policy (NELP), Introduction of CBM policy, exploration of Shale resources (Horizontal drilling) etc.
  • Improving price mechanism including subsidy.


  • Honestly speaking there is as such no major threat to oil businesses.
  • If someone say that crude is about to end on Earth than he/she doesn't know what he/she is talking about. These Oil mammoths have & will be investing multi-billions into R&D to extract oil from any place possible on this earth. Yeh tel nai khatam hone wala, one way or the other these businesses will keep up the production & demand.
  • Alternative energy are very small & will not takeover Oil easily as these Oil mammoths will keep up the lobbying effort globally to make sure that aam aadmi hamesha tel ke chakkar main hi fassa rahe.

Business Verdict :

OIL is in exploration and extraction of monopolistic commodity that is crude oil, with such a steep Crude oil price crash from $100 down to $40 in International Markets in FY15-16 & yet it maintains its profitability. Showing its worst performance is near to its best performance indicating good management decisions & favourable pricing policy for OIL ltd.

With some debt proportion & healthy cash amounts lying spare which actually negates the whole debt. OIL Ltd. is a Value Pick with a strongest possible business model known in history of mankind.

Crude oil by-products are essential part of our daily life. Bina tel ke life chal hi nai sakti kisi ki. Thanks to Stock brokers for recommending for sattebaaji in it . I see minor decline in turnovers & healthy profit margins maintained. OIL Ltd. is a Multibagger stock in India available at the value.

Note : This research is to my best knowledge. Given the size of OIL India, I might be wrong or lesser informed on few of its business activities. I acknowledge that humbly. Add up any more relevant info to this amazing Value Pick if you know more or correct me in case I mis-quoted or spoke something out of place here.

Official Website

Quality Analysis
Value Matrix

What are Value Picks ?

Value picks are stocks of companies that are believed to be undervalued at NSE or BSE. It is an outcome of huge sattebaaji directed by Stock brokers in that stock making Markets overreact to good and bad news, resulting in stock price movements that do not correspond with the company's long-term business or fundamentals.

You can learn Value Pick Multibagger Stock course & start your own research in depth. After completing the Value Pick Multibagger Stock course You have to apply methods & circle of competence on your researched Value Picks.

Is Value Pick Tax Free ?

No, Not anymore. Profit arising from holding Equity shares for 1 Year or more is covered under Long Term Capital Gain ( LTCG) as per Income Tax Act 1961 ( Section 54 ) & are liable to 0% for first 1lk and @10% exceeding 1lk

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jasmeet singh

Founder & Investor

SEBI Regd.(INH100004951)

Jasmeet Singh

About me :

Currently managing assets of 5 Crore+ & still sleep like a baby every night because Valueguyz makes life simpler.

I am passionate about 3 things in my life Financial System, Fitness & Photography

I got introduced to Financial system through Forex Trading back in 2007 during my 3rd Year of Engineering & It was too complex yet magnificent. Officially I entered Indian Stock Market in early 2008 at the very beginning of Global Financial Crisis, but what the hell did I know for me it was the last semester & time to get serious about my passion ie, Counter Strike

Legends :

RoCE : Return on Capital Employed (Effective)

PAT(Avg.) : Net Profit after tax ( Average )

CMP : Current Market Price

MoS : Margin of Safety

Market Cap. : Market Capitalization (Total)


I am a registered Research Analyst with SEBI (INH100004951). My writings n research here at are in accordance with SECURITIES AND EXCHANGE BOARD OF INDIA (RESEARCH ANALYSTS) REGULATIONS, 2014.