President of India-Backed Oil Exploration Company Signs MoU with IREL to Collaborate on Rare Earth and Critical Minerals

Oil India Limited (OIL), a Maharatna PSU under the Ministry of Petroleum & Natural Gas, signed a Memorandum of Understanding (MoU) with IREL (India) Limited, a Miniratna PSU under the Department of Atomic Energy. This significant collaboration aims to strengthen India's self-reliance in strategic mineral sourcing, specifically focusing on the development of critical minerals. While OIL is primarily known for its expertise in crude oil and natural gas, it has recently diversified into the critical minerals sector, acknowledging its growing importance. IREL, on the other hand, specialises in the mining and processing of mineral sands, including the extraction and refining of rare-earth elements.

This partnership between OIL and IREL represents a crucial milestone in India's quest for self-reliance in critical minerals and rare earth elements. As both companies are identified as PSUs under the Government of India's National Critical Mineral Mission, their collaboration is expected to play a vital role in securing essential strategic mineral resources. This initiative is crucial for bolstering the nation's energy security and driving technological advancement. The MoU was formalised with the signatures of Mr. Ranjan Goswami from Oil India and Mr. Ravi Prakash Jha from IREL, in the presence of the respective Chairman & Managing Directors, Dr. Ranjit Rath and Mr. Sarada Bhushan Mohanty, along with other senior officials.

About the Company

Oil India Ltd (OIL) is a fully integrated National Oil Company, actively involved in the exploration, development, and production of crude oil and natural gas. Beyond upstream activities, the company is also engaged in the production of Liquefied Petroleum Gas (LPG), the transportation of crude oil and natural gas, and has ventured into the generation of renewable energy. Additionally, OIL provides a range of Exploration & Production (E&P) related services for oil blocks, solidifying its comprehensive presence across the hydrocarbon value chain.

The stock’s 52-week high is Rs 767.30 per share and its 52-week low is Rs 322.15 per share. The company has a market cap of over Rs 70,000 crore and has been maintaining a healthy dividend payout of 26.1 per cent. The stock has a PE of 11x whereas the sectoral PE is 12x with ROE and ROCE of 13 per cent each.

The President of India owns the majority of the stake, i.e., 56.66 per cent. The stock is up by 35 per cent from its 52-week low of Rs 322.15 per share.

Disclaimer: The article is for informational purposes only and not investment advice.