Oil India Limited Fundamental Analysis (BSE: OIL.BO)
Oil India Limited Fundamental Analysis (BSE: OIL.BO)
Oil India Limited (BSE: OIL.BO) shows moderate financial fundamentals with a PE ratio of 9.25, profit margin of 21.69%, and ROE of 15.28%. The company generates $385.3B in annual revenue with weak year-over-year growth of 0.14%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 30.1/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze OIL.BO's fundamental strength across five key dimensions:
Efficiency Score
WeakOIL.BO struggles to generate sufficient returns from assets.
Valuation Score
ExcellentOIL.BO trades at attractive valuation levels.
Growth Score
WeakOIL.BO faces weak or negative growth trends.
Financial Health Score
ExcellentOIL.BO maintains a strong and stable balance sheet.
Profitability Score
ModerateOIL.BO maintains healthy but balanced margins.
Key Financial Metrics
Is OIL.BO Expensive or Cheap?
P/E Ratio
OIL.BO trades at 9.25 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, OIL.BO's PEG of 0.34 indicates potential undervaluation.
Price to Book
The market values Oil India Limited at 1.33 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 2.87 times EBITDA. This is generally considered low.
How Well Does OIL.BO Make Money?
Net Profit Margin
For every $100 in sales, Oil India Limited keeps $21.69 as profit after all expenses.
Operating Margin
Core operations generate 28.83 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $15.28 in profit for every $100 of shareholder equity.
ROA
Oil India Limited generates $6.74 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Oil India Limited generates limited operating cash flow of $33.00B, signaling weaker underlying cash strength.
Free Cash Flow
Oil India Limited generates weak or negative free cash flow of $-20.93B, restricting financial flexibility.
FCF Per Share
Each share generates $-12.87 in free cash annually.
FCF Yield
OIL.BO converts -2.71% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
9.25
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.34
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.33
vs 25 benchmark
P/S Ratio
Price to sales ratio
2.006
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.65
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.09
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.15
vs 25 benchmark
ROA
Return on assets percentage
0.07
vs 25 benchmark
ROCE
Return on capital employed
0.10
vs 25 benchmark
How OIL.BO Stacks Against Its Sector Peers
| Metric | OIL.BO Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 9.25 | 21.23 | Better (Cheaper) |
| ROE | 15.28% | 1266.00% | Weak |
| Net Margin | 21.69% | 1278.00% | Weak |
| Debt/Equity | 0.65 | -1.82 (disorted) | Distorted |
| Current Ratio | 1.09 | 2.24 | Neutral |
| ROA | 6.74% | 4418.00% | Weak |
OIL.BO outperforms its industry in 1 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Oil India Limited's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
6.82%
Industry Style: Cyclical, Value, Commodity
GrowingEPS CAGR
-7.11%
Industry Style: Cyclical, Value, Commodity
DecliningFCF CAGR
42.40%
Industry Style: Cyclical, Value, Commodity
High Growth