Oil India Share Price: Why Maharatna OMC stock is under pressure today?

Oil India Share Price: Shares of Oil India Ltd are under pressure on Tuesday's trading session after Area-l concessionaires decided to lift the Force Majeure on the Mozambique LNG project. As of 1:27 pm, the stock of the Maharatna PSU was trading at Rs 434.70, up by 0.74 per cent from the previous close.

The stock hit its intraday low of Rs 430 in the early hours of trade before inching up further. The scrip has declined 14.72 per cent yearly.

Force majeure on the Mozambique LNG project resumes

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Oil India Limited holds a 4 per cent interest in Area-l Offshore Rovuma Basin Block in Mozambique through a Joint Venture entity, Beas Rovuma Energy Mozambique Limited (BREML). The initial development of the project is through two LNG trains of total capacity 13.12 MMTPA.

According to the company's exchange filing, in April 2021, the degradation of the security situation in Cabo Delgado Province of Northern Mozambique necessitated the Area-l concessionaires to declare Force Majeure and suspend the development activities.

However, as the security situation has significantly improved, the Area-l concessionaires have decided to lift the Force Majeure, the company said.

Morgan Stanley on Oil India

Morgan Stanley maintains an 'overweight' rating on Oil India with a target price of Rs 467, indicating a strong conviction—around 80 per cent+ probability—of an upward move in the share price.

The brokerage highlighted that Oil India is one of the fastest-growing global producers, projecting a 13 per cent compound annual growth rate (CAGR) in production and an 11 per cent earnings CAGR over FY25–FY28E.

Morgan Stanley noted that the company’s gas average selling price (ASP), linked to about 12 to 15 per cent of oil prices, is expected to benefit from regulatory and infrastructure tailwinds, which could double gas profitability by FY28.

Additionally, refining margins are anticipated to remain higher for longer, supported by capacity expansion that could triple output in Asia’s most profitable refinery.

With an attractive valuation of 6.6x FY27E P/E and consistent return on equity (ROE) above 15 per cent, Morgan Stanley believes Oil India offers a compelling mix of growth, profitability, and value.

Oil India board meeting

Oil India's Board meeting is scheduled to be held on Friday, November 14, 2025, inter alia to:

1) Consider and approve the unaudited financial results of the company for the quarter and half-year ended September 30, 2025.

2) Consider and declare an interim dividend for FY2025-26, if any.