Oil India gets 4/5 Rating

CRISIL has assigned “4/5” (four on five) rating to the proposed initial public offer (IPO) of Oil India Ltd. OIL is a Mini Ratna public sector undertaking. This grade indicates that the fundamentals of the IPO are above average relative to the other listed equity securities in India. However, this grade is not an opinion on whether the issue price is appropriate in relation to the issue fundamentals. The grade is not a recommendation to buy / sell or hold the graded instrument, or a comment on the graded instrument’s future market price or its suitability for a particular investor.

As of March 2009, the company had cash and cash equivalent of Rs 61 billion or Rs 283.6 per share.

In 2008-09, the company reported a net profit of Rs 21.6 billion on a turnover of Rs 72 billion. It posted an EPS of Rs 101 during the same period, while its book value per share stood at Rs 436. OIL’s return on capital employed (RoCE) and return on equity (RoE) for the year stood at 35.0 per cent and 25.0 per cent, respectively.