⚠ Disclaimer: This report is generated using AI tools and is for informational purposes only. It does not constitute investment advice. Please consult a registered financial advisor before making any investment decisions.
IOC - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 3.7
| Stock Code | IOC | Market Cap | 2,09,743 Cr. | Current Price | 148 ₹ | High / Low | 189 ₹ |
| Stock P/E | 6.42 | Book Value | 133 ₹ | Dividend Yield | 4.71 % | ROCE | 7.26 % |
| ROE | 6.41 % | Face Value | 10.0 ₹ | DMA 50 | 166 ₹ | DMA 200 | 158 ₹ |
| Chg in FII Hold | 0.88 % | Chg in DII Hold | -0.42 % | PAT Qtr | 12,126 Cr. | PAT Prev Qtr | 7,610 Cr. |
| RSI | 28.6 | MACD | -5.84 | Volume | 2,15,64,213 | Avg Vol 1Wk | 2,29,94,778 |
| Low price | 120 ₹ | High price | 189 ₹ | PEG Ratio | -0.29 | Debt to equity | 0.74 |
| 52w Index | 41.3 % | Qtr Profit Var | 420 % | EPS | 23.2 ₹ | Industry PE | 13.7 |
📊 Financial Overview
- Revenue & Profitability: PAT rose sharply from ₹7,610 Cr. to ₹12,126 Cr. (QoQ), showing strong earnings momentum.
- Margins: ROE at 6.41% and ROCE at 7.26% are modest, reflecting average profitability despite large revenues.
- Debt: Debt-to-equity ratio of 0.74 is manageable, but leverage remains notable.
- Cash Flow: EPS of ₹23.2 is decent, supporting shareholder returns.
💹 Valuation Metrics
- P/E Ratio: 6.42 vs Industry PE of 13.7 → undervalued compared to peers.
- P/B Ratio: Price ₹148 vs Book Value ₹133 → trading close to book value, showing fair valuation.
- PEG Ratio: -0.29 → negative, suggesting growth mismatch with valuation.
- Intrinsic Value: Appears undervalued relative to industry, but profitability metrics limit upside.
🏢 Business Model & Competitive Advantage
- Indian Oil Corporation (IOC) operates in refining, marketing, and distribution of petroleum products.
- Competitive advantage lies in scale, government backing, and integrated operations across the energy value chain.
📈 Entry Zone & Long-Term Guidance
- Entry Zone: ₹140–155 range looks attractive given undervaluation and technical support.
- Long-Term Holding: Suitable for dividend-focused investors. Monitor profitability consistency and global crude price volatility.
✅ Positive
- Strong quarterly PAT growth (₹12,126 Cr. vs ₹7,610 Cr.).
- Dividend yield of 4.71% provides steady income.
- Undervalued P/E compared to industry average.
- FII holdings increased (+0.88%).
⚠️ Limitation
- ROE (6.41%) and ROCE (7.26%) are modest.
- PEG ratio (-0.29) indicates valuation mismatch with growth.
- Stock trading below DMA 50 & DMA 200, showing bearish technical trend.
📉 Company Negative News
- DII holdings decreased (-0.42%).
- RSI at 28.6 indicates oversold conditions.
- Stock corrected from high of ₹189 to current ₹148.
📈 Company Positive News
- Quarterly PAT growth of 420% shows strong recovery momentum.
- FII inflows reflect rising foreign investor confidence.
- Dividend yield continues to attract income-focused investors.
🏦 Industry
- Industry PE at 13.7 highlights sector trades at higher multiples than IOC.
- Energy sector growth supported by rising demand and government infrastructure spending.
🔎 Conclusion
- IOC is undervalued relative to peers with strong dividend yield but modest profitability metrics.
- Entry around ₹140–155 is favorable for long-term investors.
- Hold for dividend income and exposure to energy sector, but monitor crude price volatility and profitability consistency.