Nayara Energy Unlisted Share

₹185

*Average Price as per 4 December, 2024

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Fundamentals

FACE VALUE

10

BOOK VALUE

291

NO OF SHARES

1490561155

EPS

82.7

SALES

155091.5

INDUSTRY PE

5.05

DIVIDEND

0

DIVIDEND YIELD

0

PE

9.61

PB

2.73

PS

0.76

MARKET CAP

118499.61

EQUITY

1507.2

PAT

12321

MESSAGE

2023-24

OVERVIEW

Nayara Energy’s Vadinar refinery is India’s second largest single-site refinery, capable of handling a diverse range of crude


  • They have the most extensive network of fuel stations (over 6300)
  • Their refinery is supported by a robust infrastructure including a crude oil tanker terminal, water intake facilities, a multi-fuel power plant, a product jetty, dispatch facilities (rail, road, and sea), and of course, their retail outlets
  • They even have their own port located conveniently at Vadinar, Gujarat
  • The Refinery has an annual capacity of 20 million metric tonnes (MMT) or 405,000 barrels per day (bpd). It is capable of processing some of the toughest crudes and yet produce high quality Euro IV and Euro VI grade products.
  • Nayara Energy's fleet program FleetPlus is India's first digital fleet program providing over 30000+ Transporters and 569000+ Drivers
  • They have more than 58 supply locations spread across almost entire geography of India
  • Nayara Energy is delivering approximately 8% of India’s refining output


Timeline


1989: Nayara Energy (formerly known as Essar Oil Limited) is incorporated

2010: Increased its capacity to 20 million tonnes per annum

2015: Company underwent a leveraged buyout and transitioned into private ownership, with a valuation of ₹380 billion

2016: Rosneft, and a consortium led by Trafigura and United Capital Partners, acquires Essar Oil for $12.9 billion

2016: Launched its retail operations in India, opening its first petrol pump

2018: Essar Oil is rebranded as Nayara Energy

2023: Trafigura Group Pte Ltd sold its 24.5% interest Nayara Energy Limited to Hara Capital Sarl

2024: Announced plans to invest INR 600 Crore in setting up two new ethanol manufacturing plants


Market Share



Nayara Energy is delivering approximately 8% of India’s refining output


RIL’s direct diesel sales rose to 14.8% in March, up from 13.3% last year. Meanwhile, Nayara Energy’s share grew to 10.9%, up from 8.7% a year ago and a mere 2.6% in 2021. Combined, they accounted for 25.7% of the market, up from 22% last year. Private firms are aggressively pricing to attract large customers, such as railways, state road departments, and mining industries, which buy directly from refiners.


Expansion Plans


  • Nayara Energy has announced plans to invest an estimated INR 600 Crore in setting up two new ethanol manufacturing plants in India. Each plant will have a production capacity of 200,000 kiloliters of ethanol per day. The company aims to use broken rice and maize as feedstock for ethanol production.
  • Nayara Energy plans to have a total of five ethanol manufacturing plants. These new facilities are expected to be operational by 2026. This move toward ethanol production aligns with the company’s plans of blending 20% ethanol in fuels by 2025, contributing to cleaner energy sources in India.
  • The company plans to open a polypropylene unit at its existing 20 million-metric-tonne oil refinery in Vadinar, Gujarat. It will invest an estimated INR 6,000 Crore for a petrochemical unit with an annual capacity of 450,000 tonnes.
  • Nayara Energy will invest approximately INR 4,000 Crore in modernising the refinery to improve its lifespan and reliability.
  • Nayara Energy is studying the prospect of venturing into the sustainable aviation fuel business


Strategic Partnerships


Private oil refiner Nayara Energy Limited (NEL) and state-owned NTPC Green Energy Limited (NGEL) inked a memorandum of understanding (MoU) for collaboration in producing green hydrogen for Nayara’s captive usage.


The MoU envisages to collaborate and produce Green Hydrogen for Nayara Energy’s captive usage, accelerate decarbonisation and catalyse reduction in carbon footprint. This collaboration is in line with NTPC’s initiatives to develop hydrogen projects in India and aligns with the vision of a self-reliant India.

INSIGHT

Consolidated Financial Summary


Revenue From Operations Geographically:


Revenue Segments

In Crs

Segments31st March, 2023% of Total
Export sales51,17333%
Domestic Oil marketing companies53,16534.3%
Retail outlets42,13027.2%
Others8,6425.6%
Total1,55,110100%


Industry outlook


  • India's refining capacity is projected to increase by 56 million tons by 2028, representing a 22% overall boost. This growth is driven by India's oil demand growth for this decade, expected to contribute over one-third of global growth
  • India is a major exporter of refined products, ranking as the 4th largest exporter of middle distillates and 6th largest overall globally in 2023, with exports reaching 1.2 million barrels per day
  • New refining capacity is expected to push product supplies to 1.4 million barrels per day by mid-decade There is a rise in domestic demand for transportation fuels like gasoline and diesel

SECONDARY NAME

Nayara Energy Unlisted Share

ISIN

INE011A01019

CDSL

Yes

NSDL

Yes

INDUSTRY

Manufacturing

SECTOR (READ ONLY)

Oil Refinery

SHARE HOLDINGS

Name of ShareholderHoldings
Kesani Enterprise Company Ltd49.13 %
Rosneft Singapore Pte. Limited (Formerly known as Petrol Complex Pte. Limited)49.13 %
Founders

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