Stock Snapshot
Price Performance
Recommendation Rationale
Moderate growth outlook tempered by significant margin pressures.
Basis of our Recommendation
Indian Oil Corporation is experiencing moderate growth primarily driven by strong performance in petrochemicals and refinery expansions. However, the company faces significant margin pressures due to elevated crude prices and marketing losses, which have led to a downgrade in earnings estimates and reduced visibility for future growth.
Why We Like This Stock
- Strong performance in petrochemicals
- Refinery expansions contributing to growth
- Moderate sales growth
Things To Watch Out For
- Significant margin pressures from elevated crude prices
- Marketing losses impacting profitability
- Insufficient pricing power amid market volatility
Key Parameters
Financial Snapshot
| Actuals | Forecast | ||||
|---|---|---|---|---|---|
| FY24 | FY25 | FY26 | FY27 | FY28 | |
| Revenue (Cr.) | 776,352 | 758,106 | 784,415 | 821,311 | 850,731 |
| Profit Before Tax (Cr.) | 56,918 | 15,118 | 57,472 | 36,024 | 40,962 |
| PBT Margin | 7.3% | 2.0% | 7.3% | 4.4% | 4.8% |
| Net Profit (Cr.) | 44,113 | 13,792 | 44,062 | 26,629 | 30,279 |
| EPS | 30.2 | 9.6 | 30.1 | 18.9 | 21.4 |
Company Overview
Show Company Profile
Indian Oil Corporation Limited, together with its subsidiaries, engages in the oil, gas, petrochemicals, and alternative energy source businesses in India and internationally. It operates through Sale of Petroleum Products, Sale of Petrochemicals, Sale of Gas, and Other segments. The company is involved in the refining of petroleum products; exploration and production of crude oil and gas; explosives and cryogenic businesses; pipeline transportation of crude oil, petroleum, and gas; petrochemicals and gasoline; gas and LPG marketing; research and development; city gas distribution; and downstream operations. It also engages in low carbon, new, clean, and green energy businesses; lube blending; marketing of lubricants and base oil; participation in the shale gas asset project; crude oil trading; import and export of petroleum products; investment in E&P assets, battery technology, and alternative energy technology companies; and wind mill and solar power generation. In addition, the company provides terminalling, retailing, aviation refueling, and bunkering; and financial services, as well as operates fuel stations. It serves motorists, households, businesses, society, suppliers, business partners, and the sports industry. The company was formerly known as Indian Oil Company Limited and changed its name to Indian Oil Corporation Limited in September 1964. Indian Oil Corporation Limited was incorporated in 1959 and is based in New Delhi, India.