⚠ 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: 3.9
| Stock Code | IOC | Market Cap | 2,25,696 Cr. | Current Price | 160 ₹ | High / Low | 174 ₹ |
| Stock P/E | 9.86 | Book Value | 133 ₹ | Dividend Yield | 3.13 % | ROCE | 7.26 % |
| ROE | 6.41 % | Face Value | 10.0 ₹ | DMA 50 | 161 ₹ | DMA 200 | 153 ₹ |
| Chg in FII Hold | 0.88 % | Chg in DII Hold | -0.42 % | PAT Qtr | 7,610 Cr. | PAT Prev Qtr | 5,689 Cr. |
| RSI | 46.9 | MACD | -0.47 | Volume | 82,35,663 | Avg Vol 1Wk | 1,33,57,732 |
| Low price | 111 ₹ | High price | 174 ₹ | PEG Ratio | -0.44 | Debt to equity | 0.74 |
| 52w Index | 76.8 % | Qtr Profit Var | 1,016 % | EPS | 16.6 ₹ | Industry PE | 9.25 |
📊 Core Financials
- Revenue & Profitability: PAT rose sharply from 5,689 Cr. to 7,610 Cr. QoQ (+1,016%), showing strong earnings momentum.
- Margins: ROE at 6.41% and ROCE at 7.26% are modest, reflecting average efficiency.
- Debt: Debt-to-equity ratio of 0.74 is moderate, manageable for a large PSU.
- Cash Flow: Dividend yield of 3.13% provides solid shareholder reward.
💹 Valuation Indicators
- P/E Ratio: 9.86 vs Industry PE of 9.25 → fairly valued, slightly above peers.
- P/B Ratio: Current Price (160 ₹) / Book Value (133 ₹) ≈ 1.20, reasonable valuation.
- PEG Ratio: -0.44 suggests growth prospects are weak relative to valuation.
- Intrinsic Value: Current price near DMA 200 (153 ₹) and support levels (111 ₹) indicates limited downside risk.
🏦 Business Model & Competitive Advantage
- Indian Oil Corporation (IOC) operates as India’s largest oil refining and marketing PSU.
- Competitive advantage lies in scale, government backing, and integrated operations across refining, pipelines, and retail distribution.
- Overall health is stable, but profitability ratios remain modest compared to global peers.
📈 Entry Zone & Long-Term Guidance
- Entry Zone: Attractive entry between 150 ₹ – 160 ₹, near DMA support levels.
- Long-Term Holding: Suitable for dividend-focused investors seeking PSU stability, but monitor margins and global crude price volatility.
✅ Positive
- Strong PAT growth (+1,016% QoQ).
- Dividend yield of 3.13% provides steady income.
- Moderate debt-to-equity ratio (0.74).
- Government backing ensures long-term stability.
⚠️ Limitation
- ROE (6.41%) and ROCE (7.26%) remain modest.
- PEG ratio (-0.44) indicates weak growth prospects.
- Stock trading below recent highs (174 ₹), showing limited momentum.
📉 Company Negative News
- DII holdings decreased (-0.42%), showing reduced domestic institutional confidence.
- Technical weakness with MACD (-0.47) and RSI (46.9) near neutral zone.
📈 Company Positive News
- FII holdings increased (+0.88%), reflecting foreign investor interest.
- PAT surged significantly QoQ, showing strong operational performance.
🏭 Industry
- Industry PE at 9.25 is close to IOC’s PE, indicating fair valuation.
- Oil & gas sector growth driven by energy demand and government infrastructure push.
- Competition from other PSUs (BPCL, HPCL) and private refiners remains strong.
🔎 Conclusion
- IOC offers stability with strong earnings growth and a healthy dividend yield.
- Valuation is fair compared to peers, but profitability ratios remain modest.
- Best suited for long-term investors entering near 150–160 ₹, with monitoring of crude price trends and margin sustainability.