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Last Updated on: 23 November, 2024
Author: Getaka|Social: Getaka Financial Services X (Earlier Twitter) Profile Getaka Financial Services LinkedIn Logo
Stock Ticker - BSE: 530965 | NSE: IOC

Indian Oil Corporation Ltd: Intrinsic Value and Fundamental Analysis

Share Price and Basic Stock Data

Last Updated: November 22, 2024, 11:06 pm

Market Cap 1,87,204 Cr.
Current Price 133
High / Low197/103
Stock P/E11.0
Book Value 128
Dividend Yield9.05 %
ROCE21.1 %
ROE25.7 %
Face Value 10.0
PEG Ratio0.11

Stock P/E, Current Price, and Intrinsic Value Over Time

View Share Price Target for Indian Oil Corporation Ltd

Competitors of Indian Oil Corporation Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
Reliance Industries Ltd – Share Price and Detail Financial Report 17,12,106 Cr. 1,2651,609/1,18525.2 6060.40 %9.61 %9.25 % 10.0
Mangalore Refinery & Petrochemicals Ltd 27,560 Cr. 157289/11430.2 70.11.91 %25.8 %32.0 % 10.0
Indian Oil Corporation Ltd 1,87,204 Cr. 133197/10311.0 1289.05 %21.1 %25.7 % 10.0
Hindustan Petroleum Corporation Ltd 76,697 Cr. 361457/21018.3 2165.82 %21.3 %40.4 % 10.0
Chennai Petroleum Corporation Ltd 8,693 Cr. 5831,275/56512.7 5029.43 %35.4 %36.5 % 10.0
Industry Average356,046.00 Cr464.1717.78283.355.66%24.22%30.96%10.00

All Competitor Stocks of Indian Oil Corporation Ltd

Quarterly Result

MonthDec 2020Mar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023
Sales101,835119,874115,503133,195165,335175,292223,411208,757205,715203,872198,551179,246199,906
Expenses92,050105,534104,004122,006154,565161,019217,996205,477201,411186,173174,834155,917183,330
Operating Profit9,78614,34011,49911,18910,77014,2735,4153,2804,30417,69923,71623,32816,576
OPM %10%12%10%8%7%8%2%2%2%9%12%13%8%
Other Income1,2431,2808461,2881,4777179941,0311,7311,3059548291,916
Interest7341,2031,3831,1141,1191,8061,9081,5542,1221,9571,7432,1351,800
Depreciation2,7232,9492,9313,0123,1123,2923,1583,2833,4513,2883,4763,6104,686
Profit before tax7,57211,4698,0308,3518,0169,8911,344-52746213,75919,45018,41312,005
Tax %46%20%24%25%22%28%34%-73%-93%21%24%26%23%
Net Profit4,1029,1456,1416,2356,2617,089883-91089010,84114,73513,7139,225
EPS in Rs3.096.394.334.394.354.71-0.20-0.700.557.2910.229.296.39

Last Updated: Unknown

Quarterly Chart

Profit & Loss - Annual Report

Last Updated: Unknown

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023TTM
Sales408,923461,780488,345449,507346,045355,379421,492528,158483,763363,950589,321841,756781,574
Expenses389,402447,919471,123438,932324,007321,230379,834492,896467,710324,021541,563811,010700,255
Operating Profit19,52113,86117,22210,57522,03834,14941,65835,26216,05339,92947,75830,74581,320
OPM %5%3%4%2%6%10%10%7%3%11%8%4%10%
Other Income-4,2683,4995,0645,8605,2194,3564,3314,097-7,1654,6964,3325,0615,003
Interest5,9487,1645,9484,2013,4873,7433,8754,9255,7922,9335,4547,5887,636
Depreciation5,3095,6926,3605,2195,6986,8067,6648,50610,27310,94112,34813,18115,061
Profit before tax3,9954,5049,9787,01418,07227,95634,45025,927-7,17730,75134,28915,03863,627
Tax %-7%19%30%31%31%27%34%33%74%29%25%22%
Net Profit4,2653,6276,9674,87212,41320,38522,62617,274-1,87621,76225,72711,70448,514
EPS in Rs2.903.054.863.378.2513.6315.2312.31-0.6315.3217.786.9333.19
Dividend Payout %30%36%30%33%28%45%90%49%-437%51%46%42%

Profit & Loss Yearly Chart

YoY Net Profit Growth

Year2012-20132013-20142014-20152015-20162016-20172017-20182018-20192019-20202020-20212021-20222022-2023
YoY Net Profit Growth (%)-14.96%92.09%-30.07%154.78%64.22%10.99%-23.65%-110.86%1260.02%18.22%-54.51%
Change in YoY Net Profit Growth (%)0.00%107.05%-122.16%184.85%-90.56%-53.23%-34.65%-87.21%1370.88%-1241.80%-72.73%

Indian Oil Corporation Ltd has shown an inconsistent trend in YoY Net Profit Growth (%) in the last 11 years from 2012-2013 to 2022-2023.

Growth

Compounded Sales Growth
10 Years:5%
5 Years:8%
3 Years:29%
TTM:-3%
Compounded Profit Growth
10 Years:22%
5 Years:19%
3 Years:24%
TTM:-56%
Stock Price CAGR
10 Years:9%
5 Years:9%
3 Years:16%
1 Year:28%
Return on Equity
10 Years:16%
5 Years:16%
3 Years:18%
Last Year:26%

Last Updated: Unknown

Balance Sheet

Last Updated: November 14, 2024, 11:31 pm

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Sep 2024
Equity Capital2,4282,4282,4282,3704,7399,4799,1819,1819,1819,18113,77213,77213,772
Reserves60,60965,48566,40487,61097,357104,395103,28886,217102,657124,354125,949169,645167,594
Borrowings89,67194,91664,89358,55263,27165,65096,765129,790116,649132,020148,977132,628163,401
Other Liabilities89,170103,124100,15883,184108,352116,336126,128104,773126,658145,327153,298166,639165,544
Total Liabilities241,878265,953233,883231,715273,719295,860335,363329,962355,145410,882441,995482,683510,310
Fixed Assets66,70769,72472,84495,761112,031119,937127,223141,594151,287154,420173,665188,891202,737
CWIP27,24038,06140,37826,21916,77819,13028,28132,84536,29147,46951,13361,03266,316
Investments17,35115,89516,06931,18543,68744,80644,11235,57144,71752,35252,19065,54270,178
Other Assets130,580142,273104,59278,551101,222111,987135,746119,952122,851156,641165,006167,218171,079
Total Assets241,878265,953233,883231,715273,719295,860335,363329,962355,145410,882441,995482,683510,310

Reserves and Borrowings Chart

Cash Flow

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Cash from Operating Activity +9,34024,19546,09225,62428,21629,11512,7477,14649,65025,74729,64471,099
Cash from Investing Activity +-9,294-18,594-10,215-13,610-17,684-17,119-22,569-29,101-22,935-21,294-28,030-31,464
Cash from Financing Activity +352-3,116-38,283-11,890-10,937-12,00710,43622,456-27,369-4,058-1,794-39,385
Net Cash Flow3982,485-2,406124-405-11614502-653395-180250

Free Cash Flow

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Free Cash Flow19.00-76.00-77.00-54.00-36.00-29.00-24.00-61.00-113.00-77.00-85.00-118.00

Free Cash Flow = Income Generated from Operational Activities - Borrowings - Capital Work in Progress (CWIP)

Consistent positive free cash flow is crucial for businesses as it indicates their ability to generate cash from their core operations. It provides financial flexibility, allowing companies to invest in growth opportunities, pay dividends to shareholders, reduce debt, and weather economic downturns more effectively.

Free Cash Flow Chart

Financial Efficiency Indicators

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Debtor Days10968991110141276
Inventory Days5961465487776459111845970
Days Payable303429314140342449372734
Cash Conversion Cycle393623315546414576594042
Working Capital Days433152-11-397-2983
ROCE %8%9%6%14%20%22%16%5%15%16%8%21%

Financial Efficiency Indicators Chart

Share Holding Pattern

MonthSep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024
Promoters51.50%51.50%51.50%51.50%51.50%51.50%51.50%51.50%51.50%51.50%51.50%51.50%
FIIs7.21%7.94%8.36%8.19%7.22%7.01%6.91%7.56%7.84%8.84%8.49%7.79%
DIIs4.57%12.51%11.32%11.50%11.24%11.54%11.92%11.55%10.70%9.90%10.23%10.04%
Government0.11%0.11%0.11%0.11%19.60%19.60%19.60%19.60%19.60%19.60%19.57%19.57%
Public36.60%27.94%28.71%28.69%10.42%10.34%10.06%9.77%10.36%10.13%10.18%11.07%
No. of Shareholders9,55,41011,45,47313,35,44314,84,84717,99,11718,17,77518,27,30317,91,34919,72,34020,65,51424,28,56127,29,165

Shareholding Pattern Chart

No. of Shareholders

Mutual Fund Holdings

Fund NameNo of SharesAUM (%)Amount Invested (Cr)Previous Number of SharesPrevious DatePercentage Change
SBI Balanced Advantage Fund44,040,3072.35647.1738,647,0762024-11-2113.96%
ICICI Prudential Bharat 22 ETF38,647,0763.61567.9238,647,0762024-11-210%
SBI Contra Fund16,549,5781.03243.238,647,0762024-11-21-57.18%
Kotak Equity Arbitrage Fund - Regular Plan12,636,0000.52185.6938,647,0762024-11-21-67.3%
Franklin India Flexi Cap Fund12,000,0001.24176.3438,647,0762024-11-21-68.95%
Nippon India ETF Nifty Next 50 Junior BeES9,290,9123.24136.5338,647,0762024-11-21-75.96%
ICICI Prudential Nifty Next 50 Index Fund8,562,8873.24125.8338,647,0762024-11-21-77.84%
UTI Nifty Next 50 Index Fund6,934,2943.24101.938,647,0762024-11-21-82.06%
Franklin India ELSS Tax Saver Fund6,000,0001.4688.1738,647,0762024-11-21-84.47%
SBI Blue Chip Fund6,000,0000.288.1738,647,0762024-11-21-84.47%

ROCE Trend

EPS Trend

Key Financial Ratios

MonthMar 24Mar 23Mar 22Mar 21Mar 20
FaceValue10.0010.0010.0010.0010.00
Basic EPS (Rs.)30.307.1127.3423.57-0.97
Diluted EPS (Rs.)30.307.1127.3423.57-0.97
Cash EPS (Rs.)41.7417.4440.1234.327.66
Book Value[Excl.RevalReserv]/Share (Rs.)136.63103.99147.18122.88104.86
Book Value[Incl.RevalReserv]/Share (Rs.)136.63103.99147.18122.88104.86
Revenue From Operations / Share (Rs.)563.74611.23641.90396.41526.91
PBDIT / Share (Rs.)57.6825.3455.3648.0221.36
PBIT / Share (Rs.)46.1615.7741.9136.1010.17
PBT / Share (Rs.)40.4810.2936.0032.19-9.30
Net Profit / Share (Rs.)30.227.8726.6822.40-3.53
NP After MI And SOA / Share (Rs.)30.307.1127.3423.57-0.97
PBDIT Margin (%)10.234.148.6212.114.05
PBIT Margin (%)8.182.576.529.101.93
PBT Margin (%)7.171.685.608.12-1.76
Net Profit Margin (%)5.361.284.155.65-0.67
NP After MI And SOA Margin (%)5.371.164.255.94-0.18
Return on Networth / Equity (%)22.757.0018.7919.34-0.93
Return on Capital Employeed (%)23.909.2317.6117.195.55
Return On Assets (%)8.652.216.116.09-0.27
Long Term Debt / Equity (X)0.250.450.410.540.58
Total Debt / Equity (X)0.671.000.920.971.32
Asset Turnover Ratio (%)1.682.021.611.141.50
Current Ratio (X)0.730.760.760.710.68
Quick Ratio (X)0.170.180.180.200.27
Inventory Turnover Ratio (X)3.683.913.162.163.51
Dividend Payout Ratio (NP) (%)26.4033.7538.4044.55-539.70
Dividend Payout Ratio (CP) (%)19.1214.3825.7429.5951.38
Earning Retention Ratio (%)73.6066.2561.6055.45639.70
Cash Earning Retention Ratio (%)80.8885.6274.2670.4148.62
Interest Coverage Ratio (X)10.154.639.3712.282.98
Interest Coverage Ratio (Post Tax) (X)6.322.445.526.732.23
Enterprise Value (Cr.)356059.41248847.82232529.90191298.07199511.53
EV / Net Operating Revenue (X)0.450.290.390.520.41
EV / EBITDA (X)4.487.134.584.3410.17
MarketCap / Net Operating Revenue (X)0.290.120.180.230.15
Retention Ratios (%)73.5966.2461.5955.44639.70
Price / BV (X)1.260.760.810.750.78
Price / Net Operating Revenue (X)0.290.120.180.230.15
EarningsYield0.180.090.220.25-0.01

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value of Indian Oil Corporation Ltd as of November 23, 2024 is: 394.60

Calculation basis:

  • Fair value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100)
  • P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
  • Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance.
  • Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
  • Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.

This formula allows us to gauge the fair value of the stock by analyzing its fundamental indicators.

As of November 23, 2024, Indian Oil Corporation Ltd is Undervalued by 196.69% compared to the current share price 133.00

Intrinsic Value of Indian Oil Corporation Ltd as of November 23, 2024 is: 802.64

Calculation basis:

  • Intrinsic value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100) * (1 + EPS CAGR for Last 5 Years)
  • P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
  • Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance.
  • Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
  • Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.
  • EPS CAGR (Compound Annual Growth Rate): Represents the geometric mean growth rate of earnings per share over the last 5 years. It provides insight into the historical growth trajectory of the company's earnings.

This formula allows us to gauge the intrinsic value of the stock by analyzing its fundamental indicators along with EPS growth.

As of November 23, 2024, Indian Oil Corporation Ltd is Undervalued by 503.49% compared to the current share price 133.00

Last 5 Year EPS CAGR: 103.41%

*Investments are subject to market risks

Strength and Weakness

StrengthWeakness
  1. The stock has a low average Working Capital Days of 8.42, which is a positive sign.
  2. The company has higher reserves (104,735.69 cr) compared to borrowings (104,398.69 cr), indicating strong financial stability.
  3. The company has shown consistent growth in sales (501.00 cr) and profit (20.15 cr) over the years.
  1. The stock has a low average ROCE of 13.33%, which may not be favorable.
  2. The stock has a high average Cash Conversion Cycle of 44.42, which may not be favorable.

Stock Analysis

  • Considering all of the following key financial indicators, prospective investors are encouraged to conduct thorough research and seek professional guidance before considering any investment in Indian Oil Corporation Ltd:
    1. Net Profit Margin: 5.36%
      • Net Profit Margin: This metric indicates the percentage of profit a company makes from its total revenue. A higher net profit margin is generally desirable as it reflects better profitability.
    2. ROCE: 23.9% (Industry Average ROCE: 24.22%)
      • ROCE (Return on Capital Employed): ROCE measures a company's profitability and the efficiency with which its capital is employed. A higher ROCE indicates efficient use of capital.
    3. ROE%: 22.75% (Industry Average ROE: 30.96%)
      • ROE (Return on Equity): ROE measures a company's profitability relative to shareholders' equity. A higher ROE indicates efficient use of shareholders' funds.
    4. Interest Coverage Ratio (Post Tax): 6.32
      • Interest Coverage Ratio: The interest coverage ratio measures a company's ability to cover its interest payments on outstanding debt. A ratio greater than 2 is generally considered healthy as it indicates the company can meet its interest obligations comfortably.
    5. Quick Ratio: 0.17
      • Quick Ratio: The quick ratio assesses a company's ability to cover its short-term liabilities with its most liquid assets. A ratio higher than 1 suggests the company can meet its short-term obligations without relying heavily on inventory.
    6. Stock P/E: 11 (Industry average Stock P/E: 17.78)
      • Stock P/E (Price-to-Earnings) Ratio: The P/E ratio compares a company's current share price to its earnings per share. A lower P/E ratio relative to industry peers or historical values may indicate that the stock is undervalued.
    7. Total Debt / Equity: 0.67
      • Total Debt / Equity: This ratio measures a company's financial leverage by comparing its total debt to its total equity. A lower ratio indicates lower financial risk and greater financial stability.
    The current analysis is available for review. It's important to conduct thorough research and consider consulting with financial professionals before making any investment decisions.
    Stock Rating:

About the Company - Qualitative Analysis

Indian Oil Corporation Ltd. is a Public Limited Listed company incorporated on 30/06/1959 and has its registered office in the State of Maharashtra, India. Company’s Corporate Identification Number(CIN) is L23201MH1959GOI011388 and registration number is 011388. Currently company belongs to the Industry of Refineries. Company’s Total Operating Revenue is Rs. 598163.75 Cr. and Equity Capital is Rs. 9181.04 Cr. for the Year ended 31/03/2022.
INDUSTRYADDRESSCONTACT
RefineriesIndian Oil Bhavan, G-9, Ali Yavar Jung Marg, Mumbai Maharashtra 400051investors@indianoil.in
http://www.iocl.com
Management
NamePosition Held
Mr. Shrikant Madhav VaidyaChairman
Mr. Satish Kumar VaduguriDirector - Marketing
Mr. Sujoy ChoudhuryDirector
Mr. N Senthil KumarDirector
Mr. Anuj JainDirector - Finance
Mr. Alok SharmaDirector - R & D
Ms. Rashmi GovilDirector - Human Resources
Mr. Arvind KumarDirector - Refineries
Dr. Sujata SharmaGovernment Nominee Director
Mr. Dilip Gogoi LalungIndependent Director
Prof. (Dr) Ashutosh PantIndependent Director
Dr. Dattatreya Rao SirpurkerIndependent Director
Mr. Prasenjit BiswasIndependent Director
Mr. Sudipta Kumar RayIndependent Director
Mr. Krishnan SadagopanIndependent Director
Prof. (Dr) Ram Naresh SinghIndependent Director

FAQ

What is the latest intrinsic value of Indian Oil Corporation Ltd?

The latest intrinsic value of Indian Oil Corporation Ltd as on 23 November 2024 is ₹394.60, which is 196.69% higher than the current market price of ₹133.00.

What is the Market Cap of Indian Oil Corporation Ltd?

The Market Cap of Indian Oil Corporation Ltd is 1,87,204 Cr..

What is the current Stock Price of Indian Oil Corporation Ltd as on 23 November 2024?

The current stock price of Indian Oil Corporation Ltd as on 23 November 2024 is 133.

What is the High / Low of Indian Oil Corporation Ltd stocks in FY 2024?

In FY 2024, the High / Low of Indian Oil Corporation Ltd stocks is 197/103.

What is the Stock P/E of Indian Oil Corporation Ltd?

The Stock P/E of Indian Oil Corporation Ltd is 11.0.

What is the Book Value of Indian Oil Corporation Ltd?

The Book Value of Indian Oil Corporation Ltd is 128.

What is the Dividend Yield of Indian Oil Corporation Ltd?

The Dividend Yield of Indian Oil Corporation Ltd is 9.05 %.

What is the ROCE of Indian Oil Corporation Ltd?

The ROCE of Indian Oil Corporation Ltd is 21.1 %.

What is the ROE of Indian Oil Corporation Ltd?

The ROE of Indian Oil Corporation Ltd is 25.7 %.

What is the Face Value of Indian Oil Corporation Ltd?

The Face Value of Indian Oil Corporation Ltd is 10.0.

About the Author

Author Avatar
Getaka

Getaka, CFA, a financial analyst with 15 years of experience in the industry. Getaka holds an MBA degree and the Chartered Financial Analyst designation, demonstrating his profound understanding of financial analysis and investment management. Throughout his career, he has conducted numerous financial analyses and due diligence processes for companies in the industry, and has a strong track record of identifying key trends and opportunities. He leverages his expertise to deliver a thorough financial analysis of a company, encompassing its financial performance, key ratios, future prospects, and risks. Getaka is committed to providing accurate, reliable, and trustworthy information to help readers make informed decisions about their finances and investments.

Disclaimer: This article is for informational purposes only and should not be construed as financial advice. The author is not a SEBI registered financial advisor and does not have any vested interest in Indian Oil Corporation Ltd. Investors are advised to conduct their own due diligence and consult with a financial professional before making any investment decisions. The information provided in this article is based on publicly available data and the author's analysis, but it may not be comprehensive or up-to-date. The author and getaka.co.in are not responsible for any errors or omissions in the content. This article is not intended to promote any particular investment strategy or recommendation, and readers should consult with their own financial advisors before making any investment decisions. Data Source: NSE