Oil India Stock Jumps 4%, Sees Over 20% Upside Ahead: CLSA

Oil India stock saw significant gains on Tuesday after the company reported its Q1 FY27 results. The shares rose over 4% to Rs 473, making it one of the top gainers on the Nifty Midcap 100.

The positive performance can be attributed to strong oil production and the expansion of the Numaligarh refinery, which are seen as key triggers for the company's growth. CLSA maintains a 'Outperform' rating on Oil India with a target price of Rs 550 per share, implying an upside of more than 20% from Monday's closing price.

However, the recent increase in royalty poses a headwind to earnings. CLSA has cut its FY27 and FY28 earnings-per-share estimates by 8 percent and 4 percent, respectively, to factor in the higher royalty burden.