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Last Updated on: 21 June, 2024|Author: Getaka | Social: X Twitter Profile
Stock Ticker - BSE: 530965 | NSE: IOC

Fundamental Analysis of Indian Oil Corporation Ltd

About the Company - Indian Oil Corporation Ltd

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
Dr. S S V RamakumarDirector - R & D
Ms. Sukla MistryDirector
Mr. Sujoy ChoudhuryDirector
Mr. Dilip Gogoi LalungIndependent Director
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
Mr. Satish Kumar VaduguriDirector - Marketing
Mr. Sunil KumarIndependent Director

Basic Stock Data of Indian Oil Corporation Ltd

Last Updated: June 20, 2024, 10:43 pm

Market Cap 2,38,535 Cr.
Current Price 169
High / Low197/85.5
Stock P/E5.72
Book Value 130
Dividend Yield7.10 %
ROCE21.2 %
ROE25.8 %
Face Value 10.0
PEG Ratio0.06

Competitors of Indian Oil Corporation Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
Bharat Petroleum Corporation Ltd 1,35,936 Cr. 627688/3315.02 3491.68 %32.1 %41.9 % 10.0
Reliance Industries Ltd 19,94,224 Cr. 2,9473,030/2,22028.6 1,1730.31 %10.0 %9.23 % 10.0
Mangalore Refinery & Petrochemicals Ltd 37,262 Cr. 213289/75.210.4 75.60.47 %25.2 %31.2 % 10.0
Industry Average722,474.00 Cr1,262.3314.67532.530.82%22.43%27.44%10.00

Indian Oil Corporation Ltd Quarterly Results

MonthSep 2020Dec 2020Mar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023
Sales81,709101,835119,874115,503133,195165,335175,292223,411208,757205,715203,872198,551179,246
Expenses71,51292,050105,534104,004122,006154,565161,019217,996205,477201,411186,173174,834155,917
Operating Profit10,1979,78614,34011,49911,18910,77014,2735,4153,2804,30417,69923,71623,328
OPM %12%10%12%10%8%7%8%2%2%2%9%12%13%
Other Income1,2851,2431,2808461,2881,4777179941,0311,7311,305954829
Interest3207341,2031,3831,1141,1191,8061,9081,5542,1221,9571,7432,135
Depreciation2,6562,7232,9492,9313,0123,1123,2923,1583,2833,4513,2883,4763,610
Profit before tax8,5067,57211,4698,0308,3518,0169,8911,344-52746213,75919,45018,413
Tax %28%46%20%24%25%22%28%34%-73%-93%21%24%26%
Net Profit6,1654,1029,1456,1416,2356,2617,089883-91089010,84114,73513,713
EPS in Rs4.273.096.394.334.394.354.71-0.20-0.700.557.2910.229.29

Indian Oil Corporation Ltd Quarterly Chart

Indian Oil Corporation Ltd Profit & Loss

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023TTM
Sales408,923461,780488,345449,507346,045355,379421,492528,158483,763363,950589,321841,756787,384
Expenses389,402447,919471,123438,932324,007321,230379,834492,896467,710324,021541,563811,010718,336
Operating Profit19,52113,86117,22210,57522,03834,14941,65835,26216,05339,92947,75830,74569,048
OPM %5%3%4%2%6%10%10%7%3%11%8%4%9%
Other Income-4,2683,4995,0645,8605,2194,3564,3314,097-7,1654,6964,3325,0614,819
Interest5,9487,1645,9484,2013,4873,7433,8754,9255,7922,9335,4547,5887,958
Depreciation5,3095,6926,3605,2195,6986,8067,6648,50610,27310,94112,34813,18113,826
Profit before tax3,9954,5049,9787,01418,07227,95634,45025,927-7,17730,75134,28915,03852,084
Tax %-7%19%30%31%31%27%34%33%74%29%25%22%
Net Profit4,2653,6276,9674,87212,41320,38522,62617,274-1,87621,76225,72711,70440,180
EPS in Rs2.903.054.863.378.2513.6315.2312.31-0.6315.3217.786.9327.35
Dividend Payout %30%36%30%33%28%45%90%49%-437%51%46%42%

Indian Oil Corporation Ltd 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 Growth

Compounded Sales Growth
10 Years:5%
5 Years:8%
3 Years:29%
TTM:-8%
Compounded Profit Growth
10 Years:22%
5 Years:19%
3 Years:24%
TTM:326%
Stock Price CAGR
10 Years:12%
5 Years:10%
3 Years:32%
1 Year:85%
Return on Equity
10 Years:16%
5 Years:16%
3 Years:18%
Last Year:26%

Last Updated: June 15, 2024, 4:39 pm

Indian Oil Corporation Ltd Balance Sheet

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Sep 2023
Equity Capital2,4282,4282,4282,4282,3704,7399,4799,1819,1819,1819,18113,77213,772
Reserves57,94560,60965,48566,40487,61097,357104,395103,28886,217102,657124,354125,949153,045
Borrowings80,01589,67194,91664,89358,55263,27165,65096,765129,790116,649132,020148,977115,418
Other Liabilities79,43889,170103,124100,15883,184108,352116,336126,128104,773126,658145,327153,342175,389
Total Liabilities219,827241,878265,953233,883231,715273,719295,860335,363329,962355,145410,882442,039457,623
Fixed Assets64,58666,70769,72472,84495,761112,031119,937127,223141,594151,287154,420173,665191,287
CWIP15,45027,24038,06140,37826,21916,77819,13028,28132,84536,29147,46951,13351,642
Investments17,58817,35115,89516,06931,18543,68744,80644,11235,57144,71752,35252,19056,664
Other Assets122,203130,580142,273104,59278,551101,222111,987135,746119,952122,851156,641165,050158,030
Total Assets219,827241,878265,953233,883231,715273,719295,860335,363329,962355,145410,882442,039457,623

Indian Oil Corporation Ltd Reserves and Borrowings Chart

Indian Oil Corporation Ltd Cash Flow

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Cash from Operating Activity -7639,34024,19546,09225,62428,21629,11512,7477,14649,65025,74729,644
Cash from Investing Activity -13,056-9,294-18,594-10,215-13,610-17,684-17,119-22,569-29,101-22,935-21,294-28,030
Cash from Financing Activity 13,103352-3,116-38,283-11,890-10,937-12,00710,43622,456-27,369-4,058-1,794
Net Cash Flow-7163982,485-2,406124-405-11614502-653395-180

Indian Oil Corporation Ltd Free Cash Flow

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

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.

Indian Oil Corporation Ltd Free Cash Flow Chart

Indian Oil Corporation Ltd Financial Efficiency Indicators

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Debtor Days10968991110141276
Inventory Days5961465487776459111845969
Days Payable303429314140342449372734
Cash Conversion Cycle393623315546414576594042
Working Capital Days433152-11-397-2988
ROCE %8%9%6%14%20%22%16%5%15%16%8%

Indian Oil Corporation Ltd Financial Efficiency Indicators Chart

Indian Oil Corporation Ltd Share Holding Pattern

MonthJun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 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%
FIIs6.70%7.21%7.94%8.36%8.19%7.22%7.01%6.91%7.56%7.84%8.84%8.49%
DIIs12.37%4.57%12.51%11.32%11.50%11.24%11.54%11.92%11.55%10.70%9.90%10.23%
Government0.11%0.11%0.11%0.11%0.11%19.60%19.60%19.60%19.60%19.60%19.60%19.57%
Public29.31%36.60%27.94%28.71%28.69%10.42%10.34%10.06%9.77%10.36%10.13%10.18%
No. of Shareholders9,40,6519,55,41011,45,47313,35,44314,84,84717,99,11718,17,77518,27,30317,91,34919,72,34020,65,51424,28,561

Indian Oil Corporation Ltd Shareholding Pattern Chart

No. of Indian Oil Corporation Ltd Shareholders

Indian Oil Corporation Ltd Mutual Fund Holdings

Fund NameNo of SharesAUM (%)Amount Invested (Cr)Previous Number of SharesPrevious DatePercentage Change
SBI Balanced Advantage Fund44,040,3072.35647.179,290,9122024-06-20374.01%
ICICI Prudential Bharat 22 ETF38,647,0763.61567.929,290,9122024-06-20315.97%
SBI Contra Fund16,549,5781.03243.29,290,9122024-06-2078.13%
Kotak Equity Arbitrage Fund - Regular Plan12,636,0000.52185.699,290,9122024-06-2036%
Franklin India Flexi Cap Fund12,000,0001.24176.349,290,9122024-06-2029.16%
Nippon India ETF Nifty Next 50 Junior BeES9,290,9123.24136.539,290,9122024-06-200%
ICICI Prudential Nifty Next 50 Index Fund8,562,8873.24125.839,290,9122024-06-20-7.84%
UTI Nifty Next 50 Index Fund6,934,2943.24101.99,290,9122024-06-20-25.36%
Franklin India ELSS Tax Saver Fund6,000,0001.4688.179,290,9122024-06-20-35.42%
SBI Blue Chip Fund6,000,0000.288.179,290,9122024-06-20-35.42%

Indian Oil Corporation Ltd ROCE Trend

Indian Oil Corporation Ltd EPS Trend

Indian Oil Corporation Ltd 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)0.280.450.410.540.58
Total Debt / Equity (X)0.721.000.920.971.32
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) (%)0.0033.7538.4044.55-539.70
Dividend Payout Ratio (CP) (%)0.0014.3825.7429.5951.38
Earning Retention Ratio (%)0.0066.2561.6055.45639.70
Cash Earning Retention Ratio (%)0.0085.6274.2670.4148.62
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.)365233.40248847.82232529.90191298.07199511.53
EV / Net Operating Revenue (X)0.470.290.390.520.41
EV / EBITDA (X)4.607.134.584.3410.17
MarketCap / Net Operating Revenue (X)0.290.120.180.230.15
Retention Ratios (%)0.0066.2461.5955.44639.70
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

Indian Oil Corporation Ltd Profitability Ratios (%)

Indian Oil Corporation Ltd Liquidity Ratios

Indian Oil Corporation Ltd Liquidity Ratios (%)

Indian Oil Corporation Ltd Interest Coverage Ratios (%)

Indian Oil Corporation Ltd Valuation Ratios

Fair Value

Fair Value: 205.47

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.

Undervalued: 21.58% compared to the current price 169

Intrinsic Value: 417.94

Calculation basis:

  • Fair 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 fair value of the stock by analyzing its fundamental indicators along with EPS growth.

Undervalued: 147.30% compared to the current price ₹169

Last 5 Year EPS CAGR: 103.41%

*Investments are subject to market risks

Strength and Weakness of Indian Oil Corporation Ltd Stock

StrengthWeakness
  1. The stock has a low average Working Capital Days of 8.83, which is a positive sign.
  2. 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 11.58%, which may not be favorable.
  2. The stock has a high average Cash Conversion Cycle of 44.42, which may not be favorable.
  3. The company has higher borrowings (96,660.54) compared to reserves (95,024.23), which may suggest financial risk.

Should I Buy Indian Oil Corporation Ltd Share Now?

  • 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: 23.90% (Industry Average ROCE: %)
      • 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: %)
      • 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: 5.72 (Industry average Stock P/E: )
      • 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: 0.72
      • 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:

FAQ

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

The latest fair value of Indian Oil Corporation Ltd is ₹205.47.

What is the Market Cap of Indian Oil Corporation Ltd?

The Market Cap of Indian Oil Corporation Ltd is 2,38,535 Cr..

What is the current Stock Price of Indian Oil Corporation Ltd as on 21 June 2024?

The current stock price of Indian Oil Corporation Ltd as on 21 June 2024 is ₹169.

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 197/85.5.

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

The Stock P/E of Indian Oil Corporation Ltd is 5.72.

What is the Book Value of Indian Oil Corporation Ltd?

The Book Value of Indian Oil Corporation Ltd is 130.

What is the Dividend Yield of Indian Oil Corporation Ltd?

The Dividend Yield of Indian Oil Corporation Ltd is 7.10 %.

What is the ROCE of Indian Oil Corporation Ltd?

The ROCE of Indian Oil Corporation Ltd is 21.2 %.

What is the ROE of Indian Oil Corporation Ltd?

The ROE of Indian Oil Corporation Ltd is 25.8 %.

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