NEW DELHI: Shares of Oil IndiaBSE -3.82 % plunged over 5 per cent in Thursday’s trade after the stock got ex-bonus in 1:3 ratio. The stock dropped 5.4 per cent to hit a low of Rs 342.15 on BSE. The company had on January 6 informed about the outcome of posta; ballot/e-voting for the issue. Shareholders of Oil India would get share each for every three shares held. Brokerage Motilal Oswal Securities has a buy rating on the stock with a target of Rs 457. The brokerage is expecting the company to report a 37.5 per cent jump in net profit to Rs 564 crore for the December quarter. Sales are seen at Rs 2,315 crore, up 4.4 per cent YoY.
The company had in September quarter reported 14 per cent fall in profit on 6.5 per cent drop in net sales. Daljeet Singh Kohli, Head of Research at IndiaNivesh is positive on Oil India. The expert believe that crude prices will stay in $50-60 a barrel range which would benefit companies like Oil India. “In the past one-and-a-half years, de-regularisation has also happened, which means that Oil India, among others, will get the advantage of the crude prices going up,” Kohli recently told ET Now.