We expect oil prices to remain muted owing to robust supply from US Shale, despite production cut from OPEC and non-OPEC countries. Thus, concerns over subsidy sharing are overrated. Upstream companies were undesirable despite realising market price for crude oil, mainly on account of the subsidy sharing with OMCs. OIL will generate OCF yield of almost 30% and divided yield of 7.5% over FY20/21E. The current valuations are contextually low at 2.8/2.1x FY21/22E EV/EBITDA and 5.2/5.0x FY21/22 PER. Our TP is Rs 230/sh (6x Sep-21E standalone + Rs 85 from investments). Maintain BUY. We maintain BUY on OIL post an inline performance in 2QFY20. Though concerns over lack of production growth still persist, we think that the current valuations (2.8/2.1x FY21/22 EV/EBITDA and 5.2/5.0x FY21/22 PER) indicate strong pessimism.