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Morgan Stanley gives Oil India target price a 36% lift

Updated : June 16, 2022 10:36:05 IST

Morgan Stanley has upgraded Oil India to ‘overweight’ from ‘equalweight’ raising the target price to Rs 369 versus its earlier target price of Rs 272.

The brokerage has also raised the FY23 and FY24 EPS estimates by 37 percent and 56 percent respectively. According to Morgan Stanley, there is a tailwind for the upstream and refining earnings for Oil India on the back of declining inventories, supply-side tightness and demand recovery.

Also Read: Oil recovers from steep drop but remains below $120 per barrel as Fed hikes interest rates

Morgan Stanley believes that the upside from the refining is underappreciated by the Street after the acquisition of Numaligarh refinery. The brokerage house expects the company to deliver 44 percent earnings CAGR and 600 basis points (bps) return on equity (RoE) expansion over the next two years.

Also Read: This smallcap drilling firm's stock has beaten Coal India, ONGC and Oil India's returns by 10 times

Watch the accompanying video of CNBC-TV18’s Nimesh Shah for more details.

To watch other videos in this series, click on the Standout Brokerage Report tab below.

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