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:
-6%
Compounded Profit Growth
10 Years:
22%
5 Years:
19%
3 Years:
24%
TTM:
25%
Stock Price CAGR
10 Years:
10%
5 Years:
11%
3 Years:
23%
1 Year:
86%
Return on Equity
10 Years:
16%
5 Years:
16%
3 Years:
18%
Last Year:
26%
Last Updated: Unknown
Balance Sheet
Last Updated: Unknown
Month
Mar 2013
Mar 2014
Mar 2015
Mar 2016
Mar 2017
Mar 2018
Mar 2019
Mar 2020
Mar 2021
Mar 2022
Mar 2023
Mar 2024
Equity Capital
2,428
2,428
2,428
2,370
4,739
9,479
9,181
9,181
9,181
9,181
13,772
13,772
Reserves
60,609
65,485
66,404
87,610
97,357
104,395
103,288
86,217
102,657
124,354
125,949
169,645
Borrowings
89,671
94,916
64,893
58,552
63,271
65,650
96,765
129,790
116,649
132,020
148,977
132,628
Other Liabilities
89,170
103,124
100,158
83,184
108,352
116,336
126,128
104,773
126,658
145,327
153,298
166,639
Total Liabilities
241,878
265,953
233,883
231,715
273,719
295,860
335,363
329,962
355,145
410,882
441,995
482,683
Fixed Assets
66,707
69,724
72,844
95,761
112,031
119,937
127,223
141,594
151,287
154,420
173,665
188,891
CWIP
27,240
38,061
40,378
26,219
16,778
19,130
28,281
32,845
36,291
47,469
51,133
61,032
Investments
17,351
15,895
16,069
31,185
43,687
44,806
44,112
35,571
44,717
52,352
52,190
65,542
Other Assets
130,580
142,273
104,592
78,551
101,222
111,987
135,746
119,952
122,851
156,641
165,006
167,218
Total Assets
241,878
265,953
233,883
231,715
273,719
295,860
335,363
329,962
355,145
410,882
441,995
482,683
Reserves and Borrowings Chart
Cash Flow
Month
Mar 2013
Mar 2014
Mar 2015
Mar 2016
Mar 2017
Mar 2018
Mar 2019
Mar 2020
Mar 2021
Mar 2022
Mar 2023
Mar 2024
Cash from Operating ActivityÂ
9,340
24,195
46,092
25,624
28,216
29,115
12,747
7,146
49,650
25,747
29,644
71,099
Cash from Investing ActivityÂ
-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 ActivityÂ
352
-3,116
-38,283
-11,890
-10,937
-12,007
10,436
22,456
-27,369
-4,058
-1,794
-39,385
Net Cash Flow
398
2,485
-2,406
124
-405
-11
614
502
-653
395
-180
250
Free Cash Flow
Month
Mar 2012
Mar 2013
Mar 2014
Mar 2015
Mar 2016
Mar 2017
Mar 2018
Mar 2019
Mar 2020
Mar 2021
Mar 2022
Mar 2023
Free Cash Flow
19.00
-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.
Fair Value of Indian Oil Corporation Ltd as of October 8, 2024 is: ₹267.61
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 October 8, 2024, Indian Oil Corporation Ltd is Undervalued by 64.18% compared to the current share price ₹163.00
Intrinsic Value of Indian Oil Corporation Ltd as of October 8, 2024 is: ₹544.34
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 October 8, 2024, Indian Oil Corporation Ltd is Undervalued by 233.95% compared to the current share price ₹163.00
Last 5 Year EPS CAGR: 103.41%
*Investments are subject to market risks
Strength and Weakness
Strength
Weakness
The stock has a low average Working Capital Days of 8.42, which is a positive sign.
The company has higher reserves (99,497.50 cr) compared to borrowings (99,481.83 cr), indicating strong financial stability.
The company has shown consistent growth in sales (501.00 cr) and profit (20.15 cr) over the years.
The stock has a low average ROCE of 13.33%, which may not be favorable.
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:
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.
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.
ROE%: 22.75% (Industry Average ROE: 29.07%)
ROE (Return on Equity): ROE measures a company's profitability relative to shareholders' equity. A higher ROE indicates efficient use of shareholders' funds.
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.
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.
Stock P/E: 7.46 (Industry average Stock P/E: 11.75)
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.
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:
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.
INDUSTRY
ADDRESS
CONTACT
Refineries
Indian Oil Bhavan, G-9, Ali Yavar Jung Marg, Mumbai Maharashtra 400051
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
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