Executive Summary
Indian Oil Corporation Limited, together with its subsidiaries, engages in the refining, pipeline transportation, and marketing of petroleum products in India.
Rewards
Risk Analysis
Snowflake Analysis
Established dividend payer and good value.
Similar Companies
Share Price & News
How has Indian Oil's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: IOC's share price has been volatile over the past 3 months.
Market Performance
7 Day Return
3.5%
IOC
6.7%
IN Oil and Gas
2.2%
IN Market
1 Year Return
-47.8%
IOC
-24.7%
IN Oil and Gas
-27.6%
IN Market
Return vs Industry: IOC underperformed the Indian Oil and Gas industry which returned -29.8% over the past year.
Return vs Market: IOC underperformed the Indian Market which returned -31.7% over the past year.
Shareholder returns
| IOC | Industry | Market | |
|---|---|---|---|
| 7 Day | 3.5% | 6.7% | 2.2% |
| 30 Day | -17.8% | -9.6% | -20.0% |
| 90 Day | -34.3% | -25.2% | -25.9% |
| 1 Year | -44.8%-47.8% | -22.0%-24.7% | -26.1%-27.6% |
| 3 Year | -52.4%-60.0% | -2.8%-13.6% | -15.9%-20.5% |
| 5 Year | 14.6%-12.3% | 31.7%7.1% | -5.7%-10.6% |
Price Volatility Vs. Market
How volatile is Indian Oil's share price compared to the market and industry in the last 5 years?
Simply Wall St News
4 days ago | Simply Wall St
Introducing Indian Oil (NSE:IOC), The Stock That Slid 60% In The Last Three Years3 weeks ago | Simply Wall St
Why We Like Indian Oil Corporation Limited’s (NSE:IOC) 13% Return On Capital Employed1 month ago | Simply Wall St
Here's What You Should Know About Indian Oil Corporation Limited's (NSE:IOC) 8.2% Dividend YieldValuation
Is Indian Oil undervalued compared to its fair value and its price relative to the market?
5.85x
Price to Earnings (PE) ratio
Share Price vs. Fair Value
Below Fair Value: IOC (₹83) is trading above our estimate of fair value (₹64.24)
Significantly Below Fair Value: IOC is trading above our estimate of fair value.
Price To Earnings Ratio
PE vs Industry: IOC is good value based on its PE Ratio (5.9x) compared to the Oil and Gas industry average (6.5x).
PE vs Market: IOC is good value based on its PE Ratio (5.9x) compared to the Indian market (9.4x).
Price to Earnings Growth Ratio
PEG Ratio: IOC is good value based on its PEG Ratio (0.3x)
Price to Book Ratio
PB vs Industry: IOC is good value based on its PB Ratio (0.7x) compared to the IN Oil and Gas industry average (0.8x).
Next Steps
Future Growth
How is Indian Oil forecast to perform in the next 1 to 3 years based on estimates from 16 analysts?
20.1%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: IOC's forecast earnings growth (20.1% per year) is above the savings rate (6.5%).
Earnings vs Market: IOC's earnings (20.1% per year) are forecast to grow faster than the Indian market (19.1% per year).
High Growth Earnings: earnings are expected to grow significantly over the next 3 years.
Revenue vs Market: IOC's revenue (3.5% per year) is forecast to grow slower than the Indian market (8.8% per year).
High Growth Revenue: IOC's revenue (3.5% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: IOC's Return on Equity is forecast to be low in 3 years time (12.1%).
Next Steps
Past Performance
How has Indian Oil performed over the past 5 years?
8.1%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: IOC has high quality earnings.
Growing Profit Margin: IOC's current net profit margins (2.6%) are lower than last year (3.3%).
Past Earnings Growth Analysis
Earnings Trend: IOC's earnings have grown by 8.1% per year over the past 5 years.
Accelerating Growth: IOC's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.
Earnings vs Industry: IOC had negative earnings growth (-23.7%) over the past year, making it difficult to compare to the Oil and Gas industry average (-17%).
Return on Equity
High ROE: IOC's Return on Equity (11.1%) is considered low.
Next Steps
Financial Health
How is Indian Oil's financial position?
Financial Position Analysis
Short Term Liabilities: IOC's short term assets (₹1,202.4B) do not cover its short term liabilities (₹1,537.5B).
Long Term Liabilities: IOC's short term assets (₹1,202.4B) exceed its long term liabilities (₹653.7B).
Debt to Equity History and Analysis
Debt Level: IOC's debt to equity ratio (73.7%) is considered high.
Reducing Debt: IOC's debt to equity ratio has reduced from 99.3% to 73.7% over the past 5 years.
Debt Coverage: IOC's debt is well covered by operating cash flow (24.8%).
Interest Coverage: IOC's interest payments on its debt are well covered by EBIT (9.6x coverage).
Balance Sheet
Next Steps
Dividend
What is Indian Oil's current dividend yield, its reliability and sustainability?
8.26%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: IOC's dividend (8.13%) is higher than the bottom 25% of dividend payers in the Indian market (0.96%).
High Dividend: IOC's dividend (8.13%) is in the top 25% of dividend payers in the Indian market (4.06%)
Stability and Growth of Payments
Stable Dividend: IOC's dividend payments have been volatile in the past 10 years.
Growing Dividend: IOC's dividend payments have increased over the past 10 years.
Current Payout to Shareholders
Dividend Coverage: With its reasonably low payout ratio (37.6%), IOC's dividend payments are well covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: IOC's dividends in 3 years are forecast to be well covered by earnings (47.3% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
2.2yrs
Average management tenure
CEO
Sanjiv Singh (59yo)
2.83s
Tenure
₹8,798,405
Compensation
Mr. Sanjiv Singh has been Chairman and Managing Director of Indian Oil Corporation Limited since June 1, 2017. Mr. Singh has been Whole-Time Director of Indian Oil Corporation Limited since July 1, 2014. H ...
CEO Compensation Analysis
Compensation vs Market: Sanjiv's total compensation ($USD115.77K) is below average for companies of similar size in the Indian market ($USD807.37K).
Compensation vs Earnings: Sanjiv's compensation has been consistent with company performance over the past year.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Chairman & MD | 2.83yrs | ₹8.80m | 0.00021% ₹1.6m | |
| Compliance Officer & Company Secretary | 2.58yrs | ₹7.10m | no data | |
| Director of Marketing & Whole-time Executive Director | 1.75yrs | ₹8.46m | 0.000020% ₹152.0k | |
| Director of HR & Whole-time Executive Director | 2.17yrs | ₹8.09m | 0.00010% ₹760.2k | |
| Director of Planning & Business Development and Whole-Time Executive Director | 3.58yrs | ₹8.77m | 0.000020% ₹152.0k | |
| Director of Research & Development and Whole-Time Executive Director | 3.17yrs | ₹9.57m | 0.00010% ₹760.2k | |
| Director of Pipelines & Whole-time Executive Director | 1.67yrs | ₹5.06m | no data | |
| CFO & Director of Finance | 0.92yr | no data | no data | |
| General Manager of Corporate Finance | no data | no data | no data | |
| General Manager of Information Systems - Refinery Head Quarters | no data | no data | no data |
2.2yrs
Average Tenure
58yo
Average Age
Experienced Management: IOC's management team is considered experienced (2.2 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Chairman & MD | 2.83yrs | ₹8.80m | 0.00021% ₹1.6m | |
| Director of Marketing & Whole-time Executive Director | 1.75yrs | ₹8.46m | 0.000020% ₹152.0k | |
| Director of HR & Whole-time Executive Director | 2.17yrs | ₹8.09m | 0.00010% ₹760.2k | |
| Director of Planning & Business Development and Whole-Time Executive Director | 3.58yrs | ₹8.77m | 0.000020% ₹152.0k | |
| Director of Research & Development and Whole-Time Executive Director | 3.17yrs | ₹9.57m | 0.00010% ₹760.2k | |
| Director of Pipelines & Whole-time Executive Director | 1.67yrs | ₹5.06m | no data | |
| Director of Refineries & Director | 0.50yr | no data | no data | |
| Independent Non-Executive Director | 2.58yrs | ₹640.00k | no data | |
| Independent Non-Executive Director | 2.58yrs | ₹840.00k | no data | |
| Independent Non-Executive Director | 2.58yrs | ₹1.00m | no data |
2.6yrs
Average Tenure
58yo
Average Age
Experienced Board: IOC's board of directors are not considered experienced ( 2.6 years average tenure), which suggests a new board.
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.
Ownership Breakdown
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Top Shareholders
Company Information
Indian Oil Corporation Limited's company bio, employee growth, exchange listings and data sources
Key Information
- Name: Indian Oil Corporation Limited
- Ticker: IOC
- Exchange: NSEI
- Founded: 1959
- Industry: Oil and Gas Refining and Marketing
- Sector: Energy
- Market Cap: ₹760.154b
- Shares outstanding: 9.16b
- Website: https://www.iocl.com
Location
- Indian Oil Corporation Limited
- 3079/3, J.B. Tito Marg
- Sadiq Nagar
- New Delhi
- Delhi
- 110049
- India
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| 530965 | BSE (Mumbai Stock Exchange) | Yes | Equity Shares | IN | INR | Jul 1996 |
| IOC | NSEI (National Stock Exchange of India) | Yes | Equity Shares | IN | INR | Jul 1996 |
Biography
Indian Oil Corporation Limited, together with its subsidiaries, engages in the refining, pipeline transportation, and marketing of petroleum products in India. It is also involved in the exploration and production of crude oil and gas; and marketing of natural gas and petrochemicals. The company’s products include petrol/gasoline, diesel/gas oil, lubricants and greases, auto gas, cooking gas, kerosene, LPG, bulk/industrial fuels, aviation fuel, marine oils, and bitumen. In addition, it offers special products, such as carbon black feedstock, raw petroleum coke, Sulphur, paraffin wax, raw petroleum coke, jute batching oil, micro crystalline wax, mineral turpentine oil, toluene, propylene, benzene, and petcoke. The company operates through a network of approximately 9 refineries; 14,231 kilometers of crude/product and gas pipelines; approximately 27,702 fuel stations, including 7,857 Kisan Seva Kendra outlets; 125 terminals and depots; 91 LPG bottling plants; 116 aviation fuel stations; 6,960 consumer pumps; and approximately 11,964 LPG distributors. Indian Oil Corporation Limited’s exploration and production portfolio comprises 10 oil and gas blocks in India; and 12 blocks in Canada, Gabon, Israel, Libya, Nigeria, Oman, Russia, the United Arab Emirates, the United States, and Venezuela. Further, it engages in the explosives and cryogenic; wind and solar power generation; lube blending; and lubricants and base oil marketing activities. The company also exports its products. It has strategic alliance with ENOC Group. The company was founded in 1959 and is based in New Delhi, India.
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/04/08 12:54 |
| End of Day Share Price | 2020/04/08 00:00 |
| Earnings | 2019/12/31 |
| Annual Earnings | 2019/03/31 |
Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.