IOC - Swing Trade Analysis with AI Signals

Last Updated Time : 20 Dec 25, 07:01 am

Swing Trade Rating: 4.3

📊 IOC shows strong potential for swing trading. The stock is currently priced at ₹163, close to its 50 DMA (₹162) and comfortably above the 200 DMA (₹151), suggesting near-term support. RSI at 44.6 indicates neutral momentum, while MACD (0.42) reflects mild bullishness. Strong quarterly profit growth (+1,016%) and attractive dividend yield (3.11%) add to its appeal. Optimal entry would be near ₹158–160, close to support. If already holding, consider exiting around ₹170–172, near resistance levels.

✅ Positive

• Low P/E ratio (10.0) compared to industry PE (11.3)
• Strong quarterly profit growth (₹7,610 Cr vs ₹5,689 Cr)
• Attractive dividend yield of 3.11%
• Positive institutional inflows (FII +0.21%, DII +0.13%)
• Healthy EPS (16.6 ₹)

⚠️ Limitation

• Moderate ROCE (7.26%) and ROE (6.41%)
• High debt-to-equity ratio (0.74)
• PEG ratio (-0.45) indicates valuation concerns
• Volume lower than weekly average, showing reduced trading activity

📉 Company Negative News

• High leverage compared to peers
• Profitability ratios remain modest despite strong PAT growth

📈 Company Positive News

• Massive quarterly profit surge (+1,016%)
• Strong operational performance with consistent cash flows
• Positive institutional investor support

🏭 Industry

• Industry PE (11.3) is slightly higher than IOC’s PE (10.0), showing relative undervaluation
• Oil & gas sector remains cyclical but supported by demand recovery and government backing

📝 Conclusion

IOC presents a favorable swing trade opportunity with strong fundamentals, undervaluation, and attractive dividend yield. Entry near ₹158–160 is optimal, while exit should be considered around ₹170–172. Despite leverage concerns, strong profit growth and institutional inflows support medium-term prospects.

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