Oil India Limited

LOW RISK / HIGH RETURN

HOLDING PERIOD – ONE MONTH PLUS

OIL INDIA

Present Price – Rs.1150

Projected Price – Rs.1300 plus

Oil India Limited is the second largest national oil and gas company in India as measured by total proved plus probable oil and natural gas

reserves and production . The company is primarily engaged in the exploration, development, production and transportation of crude oil and

natural gas onshore in India. The company also process produced natural gas to extract LPG. They are present internationally through the

exploration of crude oil and natural gas in Egypt, Gabon, Iran, Libya, Nigeria, Timor Leste and Yemen. They primarily conduct activities with

respect to domestic producing blocks and exploration activities in their nomination blocks independently. They also conduct exploration activity,

both in India and overseas, through joint venture arrangements and PSCs with other oil companies.

The Company has interests in downstream activities through a 26% equity stake in NRL, a 10% equity stake in BCPL and a 23% equity stake in

DNP Limited. They also hold a 10% equity stake in a 741 kilometer pipeline construction project in Sudan that was completed in 2005. They have

the ability to provide various exploration and production-related services to the oil and gas industry, both domestically and internationally,

including pipeline construction, pipeline consultancy services, drilling and well work-over services, research and development services and

logging services.

This PSU which came out with an IPO has got listed today and gave listing gains to all investors. We are of the view that FIIs would buy it in a big

way and the price expected in the next month could be around Rs.1300.

BUYING IS ADVISED FOR MEDIUM TERM.