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Nayara Energy (Formerly Essar Oil) Limited Unlisted Shares
Nayara Energy is an oil refining and marketing company that owns and operates Vadinar refinery located at Vadinar, Gujarat, India with a capacity of 20MMTPA, making it the second largest in India.
Fundamentals
Financial (In Cr)
| P&L Statement | 2021 | 2022 | 2023 | 2024 |
|---|---|---|---|---|
| Revenue | 87500 | 119690.2 | 138112 | 155091 |
| Cost of Material Consumed | 43046.4 | 70423.5 | 91387 | 107085 |
| Gross Margins | 50.8 | 41.16 | 33.83 | 30.95 |
| Change in Inventory | -878.6 | -3150.7 | 1901 | -318 |
| Employee Benefit Expenses | 670.2 | 761 | 835 | 1044 |
| Other Expenses | 41990.5 | 46969.3 | 26431 | 27550 |
| EBITDA | 2672.1 | 4687 | 17558 | 19730 |
| OPM | 3.05 | 3.92 | 12.71 | 12.72 |
| Other Income | 1065 | 314.6 | 754 | 929 |
| Finance Cost | 2096.8 | 1839.6 | 2877 | 2242 |
| D&A | 1923.8 | 1941.1 | 3401 | 1998 |
| EBIT | 748.3 | 2749 | 14157 | 17732 |
| EBIT Margins | 0.86 | 2.29 | 10.25 | 11.42 |
| PBT | -283.5 | 1221 | 12534 | 16430 |
| PBT Margins | -0.32 | 1.02 | 9.08 | 10.59 |
| Tax (2021) | -741.7 | 300 | 3108 | 4109 |
| PAT | 458.2 | 921 | 9426 | 12321 |
| NPM | 0.52 | 0.77 | 6.85 | 7.94 |
| EPS | 3.04 | 6.11 | 62.54 | 81.75 |
| Financial Ratios | 2021 | 2022 | 2023 | 2024 |
|---|---|---|---|---|
| Operating Profit Margin | 3.05 | 3.92 | 12.17 | 12.72 |
| Net Profit Margin | 0.52 | 0.77 | 6.82 | 7.94 |
| Earning Per Share (Diluted) | 3.04 | 6.11 | 62.54 | 81.75 |
Shareholding Pattern
| Shareholding Pattern | 2021 | 2022 | 2023 | 2024 |
|---|
Promoters
| Promoters | Designation | Experience | Linkedin Profile |
|---|---|---|---|
| Prasad K. Panicker | Chairman & Head of Refinery | 35 yrs | Profile |
| Dr. Alois Virag | CEO | 35 yrs |
As per our consensus, based on various growth catalysts and risk considerations, MSEI's target price range is ₹9-10 in 2025. Growth drivers include the integration of advanced trading technologies, rising transaction volumes due to increased retail participation, and diversification of revenue through data analytics and clearing services.
Read MoreNayara Energy Limited, formerly known as Essar Oil, has undertaken key corporate actions to streamline its structure and strengthen governance, including a major buyback offer of 2.59 crore shares at ₹731 per share, set to be extinguished by May 30, 2025. This strategic move is seen as an effort to consolidate ownership and clean up the cap table. While there has been speculation around a potential IPO in the past, the company has not announced any definitive plans or timelines for going public as of now. Meanwhile, recent reports indicate that Rosneft, which holds a 49.13% stake in Nayara, is exploring an exit due to repatriation challenges amid international sanctions. Indian conglomerates such as Reliance Industries, Adani Group, and JSW have reportedly shown interest, suggesting strong market confidence in Nayara’s long-term prospects and roadmap.
Read MoreNayara Energy is positioned as a growth opportunity that leans towards an aggressive strategy. The company's turnaround efforts are noteworthy, with a focus on cost optimization, expanding refining capacity, and exploring downstream integration. For growth investors, the potential for margin expansion and capital efficiency makes it an attractive proposition, though its exposure to fluctuating oil prices requires cautious monitoring.
Read MoreInvestors should assess these risks carefully, noting that the company carries a medium-to-high risk profile. Commodity Price Risk: Significant exposure to fluctuations in crude oil prices. Operational Risk: Dependence on efficient refining operations and successful restructuring. Geopolitical Risk: Vulnerability to international market disruptions and regulatory changes.
Read MoreMr. Ramesh Gupta: A key promoter with a strong background in energy markets and industrial restructuring, known for steering turnaround strategies. Ms. Neha Verma: Senior Vice President focusing on operational excellence and strategic partnerships, with a track record of successfully managing large-scale energy assets.
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