Oil India shares jump over 8% after company records highest ever profit in Q3

Shares of Oil India Ltd jumped over 8% in early trade on Monday after the company reported its highest ever profit after tax (PAT) in Q3FY23 (October-December) due to strength of better pricing and higher output of crude oil and natural gas.

The company reported a net profit of ₹1,746.10 crore for the three months ending in December, up from ₹1,244.90 crore during the same period last year.

According to the company's exchange filing, crude oil production for the nine months ended 31st December, 2022 was 2.376 million metric tons (MMT) vis-à-vis 2.262 MMT for the period ended 31st December 2021, up by 5.04%. Whereas, natural gas production for the nine months ended 31st December, 2022 was 2,400 million metric standard cubic meters (MMSCM) vis-à-vis 2,311 MMSCM for the nine months ended 31st December 2021, up by 3.85%.

On the technical front, the stock has gained 43.46% from a 52-week low of ₹167.8 recorded on September 28, 2022. However, the stock price fell 2.9% and underperformed its sector by 0.3% in the past year.

"We are seeing strong positive traction in this counter, and opening ticks have recovered entirely from Friday's weakness. Further, positive traction can be seen with next resistance at 250 level and 230 level is the support," said Rajesh Bhosale - Equity Technical and Derivative Analyst, Angel One.

According to a MintGenie poll, 15 analysts on an average recommend ‘strong buy’ rating on the stock.