Oil India Ltd.
ISIN: INE274J01014 • Market Cap: ₹77,264 Cr
The 5-Pillar Quality Audit for Oil India Ltd.
Evaluated across Profitability, Financial Health, Historical Compounding, Valuation Safety, and Ownership Governance:
1. Profitability & Capital Efficiency
Weight: 25%Measures operating margins (33.7%), Return on Capital Employed (11.8%), and equity compounding (13.2%).
2. Financial Health & Solvency
Weight: 25%Debt-to-Equity is 0.60 with comfortable interest coverage and clean working capital.
3. Growth & Compounding Track Record
Weight: 20%Historical 3Y Sales CAGR (4.5%) and 3Y PAT CAGR (0.8%).
4. Valuation Multiple & Margin of Safety
Weight: 15%Trades at P/E of 9.25 vs PEG of 0.56 and Dividend Yield of 2.4%.
5. Ownership Quality & Governance
Weight: 15%Promoter holding stands at 56.7%, backed by 37.3% institutional ownership.
Key Fundamental Strengths
Attractive Valuation Margin (P/E: 9.25)
Trading at a P/E multiple of 9.25, the stock offers a favourable risk-reward entry for quality compounding.
Deep Institutional Sponsorship (37.3%)
Mutual funds, domestic DIIs, and foreign FIIs hold 37.3%, providing strong governance scrutiny.
Areas to Watch & Potential Risks
Subdued Capital Efficiency (ROCE: 11.8%)
A sub-12% ROCE suggests return on capital barely exceeds the company's weighted average cost of capital (WACC).
Topline Stagnation (3Y Sales CAGR: 4.5%)
Revenue growth has slowed below inflation rates, indicating cyclical demand slowdown or saturated core markets.
Quantitative Strategy Eligibility
Checking OIL against established Indian wealth creation frameworks:
Coffee Can Investing Framework
Fails 10%+ revenue growth or 15%+ minimum capital return benchmark over historical periods.
Quality Factor Screener (High RoIC + Low Debt)
Scorecard of 70/100 or leverage profile sits below strict quality index hurdles.
GARP / Value-Growth Blend
Provides balanced valuation margin with strong profitability scores.
Oil Gas & Consumable Fuels Sector Peer Comparison
Compare OIL directly against top industry peers by market capitalization:
| Company | 5-Pillar Score | Market Cap | P/E | ROCE | D/E | Scorecard |
|---|---|---|---|---|---|---|
| Oil India Ltd. (OIL)Current | 70/100 | ₹77,264 Cr | 9.25 | 11.8% | 0.60 | — |
| Reliance Industries Ltd. (RELIANCE) | 68/100 | ₹17.69 Lakh Cr | 23.68 | 9.2% | 0.41 | View |
| Oil & Natural Gas Corporation Ltd. (ONGC) | 67/100 | ₹2.99 Lakh Cr | 6.88 | 12.7% | 0.38 | View |
| Coal India Ltd. (COALINDIA) | 73/100 | ₹2.47 Lakh Cr | 7.90 | 19.6% | 0.12 | View |
| Indian Oil Corporation Ltd. (IOC) | 69/100 | ₹1.93 Lakh Cr | 5.73 | 18.9% | 0.55 | View |
| Bharat Petroleum Corporation Ltd. (BPCL) | 72/100 | ₹1.34 Lakh Cr | 7.83 | 25.6% | 0.45 | View |
Frequently Asked Questions: Oil India Ltd.
Q:What is the 5-Pillar Fundamental Score for Oil India Ltd. (OIL)?
Oil India Ltd. has a RupeeTools Fundamental Score of 70/100, placing it in the 'Solid & Healthy' category. Its pillar scores are: Profitability (74/100), Financial Health (68/100), Growth (40/100), Valuation (90/100), and Ownership Quality (85/100).
Q:Is OIL fundamentally strong for long-term investment?
Yes, OIL exhibits solid fundamental strength with a 70/100 score, driven by a return on equity of 13.2% and a debt-to-equity ratio of 0.60.
Q:Does OIL pass the Coffee Can Investing filter?
No. OIL does not currently meet the strict 15% ROCE and 10% sustained topline compounding threshold mandated by the Coffee Can investing framework.
Q:How does OIL compare against other Oil Gas & Consumable Fuels peers?
Within India's Oil Gas & Consumable Fuels sector, OIL trades at a P/E of 9.25 and generates an ROCE of 11.8%. Compare its 5-Pillar score of 70/100 against top sector peers like Reliance Industries Ltd. (68/100), Oil & Natural Gas Corporation Ltd. (67/100).
Regulatory & SEBI Research Analyst Compliance Disclaimer:
This 5-pillar fundamental score is an automated quantitative health check generated purely from historical public financial statements, corporate filings, and exchange disclosures for educational and informational purposes only. It does NOT constitute investment advice, a stock recommendation, or a solicitation to buy or sell securities. RupeeTools is not a SEBI-registered Research Analyst. Please consult a SEBI-registered financial advisor before making investment decisions.