Jefferies starts Oil India with 'buy' rating

Last Updated: Fri, Apr 05, 2013 06:33 hrs

Jefferies initiates coverage of Oil India Ltd with a "buy" rating and a target price of 665 rupees.

The brokerage says the company will benefit from the government's action to allow higher diesel prices, which reduces the subsidy burden on Oil India, and says a potential gas price hike could be an additional catalyst.

The bank says that every $1/mmbtu increase in gas prices would increase Oil India's fiscal 2015 earnings per share by 6 percent.

At 0553 GMT, Oil India shares are up 2.5 percent.

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