IOC - Investment Analysis: Buy Signal or Bull Trap?
Back to ListInvestment Rating: 3.9
| Stock Code | IOC | Market Cap | 2,43,988 Cr. | Current Price | 173 ₹ | High / Low | 174 ₹ |
| Stock P/E | 10.7 | Book Value | 133 ₹ | Dividend Yield | 2.89 % | ROCE | 7.26 % |
| ROE | 6.41 % | Face Value | 10.0 ₹ | DMA 50 | 162 ₹ | DMA 200 | 154 ₹ |
| Chg in FII Hold | 0.88 % | Chg in DII Hold | -0.42 % | PAT Qtr | 7,610 Cr. | PAT Prev Qtr | 5,689 Cr. |
| RSI | 67.1 | MACD | 1.22 | Volume | 3,02,36,090 | Avg Vol 1Wk | 1,65,33,454 |
| Low price | 111 ₹ | High price | 174 ₹ | PEG Ratio | -0.48 | Debt to equity | 0.74 |
| 52w Index | 97.3 % | Qtr Profit Var | 1,016 % | EPS | 16.6 ₹ | Industry PE | 10.0 |
📊 IOC shows moderate potential for long-term investment. ROE at 6.41% and ROCE at 7.26% are modest, reflecting average efficiency. The PEG ratio of -0.48 indicates weak growth prospects, but valuation comfort exists with a P/E of 10.7, close to the industry average of 10.0. Dividend yield at 2.89% provides steady income support. Current price (173 ₹) is above DMA 50 (162 ₹) and DMA 200 (154 ₹), showing bullish momentum, but it is near its 174 ₹ resistance. Quarterly PAT surged significantly (7,610 Cr. vs 5,689 Cr.), boosting earnings visibility. Debt-to-equity at 0.74 is manageable for a large-cap PSU.
💡 Ideal Entry Zone: 160 ₹ – 170 ₹ (aligned with DMA 50 and valuation comfort).
📈 Exit / Holding Strategy: If already holding, maintain for 2–3 years provided ROE improves above 8% and profitability sustains. Consider partial profit booking near 174–180 ₹ resistance. Long-term holding is viable if dividend yield remains stable and earnings growth continues.
Positive
- 📌 P/E of 10.7 close to industry PE of 10.0 shows valuation comfort.
- 📌 Dividend yield of 2.89% provides steady income support.
- 📌 EPS at 16.6 ₹ supports earnings visibility.
- 📌 Quarterly PAT growth of 1,016% (5,689 Cr. to 7,610 Cr.).
- 📌 Price above DMA 50 and DMA 200 indicates bullish momentum.
Limitation
- ⚠️ ROE at 6.41% and ROCE at 7.26% are modest.
- ⚠️ PEG ratio of -0.48 indicates weak growth prospects.
- ⚠️ Current price near resistance (174 ₹) may cap upside.
- ⚠️ RSI at 67.1 suggests overbought conditions.
Company Negative News
- ❌ Decline in DII holdings (-0.42%).
- ❌ Weak efficiency metrics compared to peers.
Company Positive News
- ✅ Strong quarterly PAT surge (boosting profitability outlook).
- ✅ FII holdings increased (+0.88%), showing foreign investor confidence.
- ✅ Dividend yield supports long-term investors.
Industry
- ⛽ Industry PE at 10.0 vs stock PE 10.7 highlights fair valuation.
- ⛽ Oil & gas sector supported by rising energy demand and government reforms.
Conclusion
🔎 IOC offers valuation comfort, dividend support, and strong quarterly earnings, making it a moderate candidate for long-term investment. Accumulation near 160–170 ₹ is ideal. Hold for 2–3 years with partial profit booking near 174–180 ₹ resistance, while monitoring ROE improvement and sector trends.