Analysts have modestly raised the fair value estimate for Indian Oil from ₹168.03 to ₹168.68. This update reflects an improved outlook, driven by stronger revenue growth expectations despite minor revisions to profit margins and discount rates.
What's in the News
- Indian Oil Corporation plans to acquire a 50% stake in renewable energy firm Fourth Partner Energy through its subsidiary Terra Clean Ltd in a deal estimated at $400 million. This marks its first foray into green energy acquisitions (Key Developments).
- The deal for Fourth Partner Energy, if finalized, will involve both primary and secondary share transactions. This would provide a partial exit for international stakeholders including IFC, ADB, DEG, TPG’s RISE Fund, and Norfund (Key Developments).
- A Board Meeting is planned for October 27, 2025, to consider and approve unaudited financial results for the quarter and half year ended September 30, 2025 (Key Developments).
- At the August 30, 2025 AGM, Indian Oil approved a dividend of INR 3 per equity share for the year 2024-25 (Key Developments).
Valuation Changes
- Fair Value Estimate has risen slightly from ₹168.03 to ₹168.68, reflecting updated market prospects.
- Discount Rate increased marginally from 13.09% to 13.13%.
- Revenue Growth expectations have improved from 0.86% to 0.98%.
- Net Profit Margin edged down from 3.28% to 3.25%.
- Future P/E Ratio has increased noticeably from 12.06x to 13.30x.
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