Update shared on 12 Nov 2025
Fair value Increased 2.81%Analysts have raised their price target for Indian Oil from ₹163.43 to ₹168.03. They cite improved revenue growth forecasts and a lower discount rate as key drivers for this upward revision.
What's in the News
- Indian Oil plans to acquire a 50% stake in Fourth Partner Energy, marking its first major entry into the green energy sector through a deal valued at about $400 million. The move would provide an exit for several international investors. The acquisition is yet to be finalized (M&A Rumors and Discussions).
- The company and Air India have signed an MoU for the supply of Sustainable Aviation Fuel. This establishes a joint effort to support decarbonization and produce certified sustainable fuel for both national and international flights (Strategic Alliances).
- Indian Oil is entering a joint venture with Rajasthan Rajya Vidyut Utpadan Nigam Limited to develop and operate renewable energy projects in solar parks (Strategic Alliances).
- A Board Meeting is scheduled for October 27, 2025, to consider and approve the company's unaudited financial results for the recent quarter and half-year period (Board Meeting).
- The dividend declared for the year 2024-25 is INR 3 per equity share, as approved at the latest AGM (Dividend Decreases).
Valuation Changes
- Fair Value Estimate has increased from ₹163.43 to ₹168.03. This reflects a moderate upward revision in analyst expectations.
- Discount Rate has decreased from 14.09% to 13.09%. This indicates a marginally lower risk assessment in valuation models.
- Revenue Growth Projection has risen slightly, moving from 82.84% to 85.73%.
- Net Profit Margin Estimate has edged down from 3.32% to 3.28%.
- Future P/E Ratio has increased modestly from 11.92x to 12.06x. This suggests a higher valuation of future earnings.
Disclaimer
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