Upstream companies were out of flavor despite realizing market price for crude oil, mainly on account of lower provisioning of budgetary support in FY19 (Rs 248bn). The subsidy sharing concern allayed when the Govt. committed to settle Rs 430bn of subsidy from its own pocket. Moreover, we expect the oil prices to remain muted owing to the robust supply from US Shale, despite production cut from OPEC and non-OPEC countries. Hence, given that (1) >80% revenue comes from crude oil, (2) There is no overhang of subsidy sharing, upstream companies should be re-rated. Our TP is Rs 234/sh (6x Mar-21E standalone + Rs 90 from investments). Maintain BUY. We agree that there are concerns over lack of production growth for OIL, however we think that the current valuations (3.8x FY21 EV/EBITDA and 6.5x FY21 PER) indicate strong pessimism.