EBITDA (earnings before interest, tax, depreciation and amortization) margin, however, declined 150 bps to 39.4% in Q2FY19 from 40.9% in Q2FY18.
said that the board of directors of the company is scheduled to meet on Monday, November 19, 2018, to consider the proposal for buyback of the fully paid-up equity shares of the company.
Last year, Oil India, the nation's second-largest state explorer, had bought back 44.9 million equity shares for Rs 15.27 billion at a price of Rs 340 per equity share (pre-bonus share in the ratio of 1:2).
According to analyst BOB Capital Markets, the stock offers deep value at current levels, factoring implied oil realisations of around US$ 40/bbl (net of a subsidy hit of US$ 10-14/bbl over FY19-FY21E).
“We continue to factor in a subsidy burden of US$ 10-14/bbl for Oil India
over FY19-FY21 due to a lack of clarity from the government. Still, at 5.7x/5.5x FY20E/FY21E EPS, Oil India offers value and is pricing in the worst case (viz. an ad-hoc subsidy-sharing regime). The recent decline in oil price offers respite from subsidy concerns. In case of a confirmation of nil subsidies (clarity likely by Q3FY19 earnings),” the brokerage firm said result review with maintaining ‘buy’ rating on the stock.
At 09:41 AM; Oil India was trading 1.6% higher at Rs 202 on the BSE, as compared to 0.06% rise in the S&P BSE
Sensex. A combined 701,342 equity shares changed hands on the counter on the BSE