NSEI:IOC

Stock Analysis Report

Executive Summary

Indian Oil Corporation Limited, together with its subsidiaries, engages in the refining, pipeline transportation, and marketing of petroleum products in India.


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

IOCIndustryMarket
7 Day3.5%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 Year14.6%-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

Valuation

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

NamePositionTenureCompensationOwnership
Sanjiv Singh
Chairman & MD2.83yrs₹8.80m0.00021% 1.6m
Kamal Gwalani
Compliance Officer & Company Secretary2.58yrs₹7.10mno data
Gurmeet Singh
Director of Marketing & Whole-time Executive Director1.75yrs₹8.46m0.000020% 152.0k
Ranjan Mohapatra
Director of HR & Whole-time Executive Director2.17yrs₹8.09m0.00010% 760.2k
Govind Satish
Director of Planning & Business Development and Whole-Time Executive Director3.58yrs₹8.77m0.000020% 152.0k
S. S. Ramakumar
Director of Research & Development and Whole-Time Executive Director3.17yrs₹9.57m0.00010% 760.2k
Akshay Singh
Director of Pipelines & Whole-time Executive Director1.67yrs₹5.06mno data
Sandeep Gupta
CFO & Director of Finance0.92yrno datano data
Rohit Agrawala
General Manager of Corporate Financeno datano datano data
Subrat Nayak
General Manager of Information Systems - Refinery Head Quartersno datano datano data

2.2yrs

Average Tenure

58yo

Average Age

Experienced Management: IOC's management team is considered experienced (2.2 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Sanjiv Singh
Chairman & MD2.83yrs₹8.80m0.00021% 1.6m
Gurmeet Singh
Director of Marketing & Whole-time Executive Director1.75yrs₹8.46m0.000020% 152.0k
Ranjan Mohapatra
Director of HR & Whole-time Executive Director2.17yrs₹8.09m0.00010% 760.2k
Govind Satish
Director of Planning & Business Development and Whole-Time Executive Director3.58yrs₹8.77m0.000020% 152.0k
S. S. Ramakumar
Director of Research & Development and Whole-Time Executive Director3.17yrs₹9.57m0.00010% 760.2k
Akshay Singh
Director of Pipelines & Whole-time Executive Director1.67yrs₹5.06mno data
Shrikant Vaidya
Director of Refineries & Director0.50yrno datano data
Samirendra Chatterjee
Independent Non-Executive Director2.58yrs₹640.00kno data
Sankar Chakraborti
Independent Non-Executive Director2.58yrs₹840.00kno data
Jagdish Kishwan
Independent Non-Executive Director2.58yrs₹1.00mno 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

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
530965BSE (Mumbai Stock Exchange)YesEquity SharesININRJul 1996
IOCNSEI (National Stock Exchange of India)YesEquity SharesININRJul 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

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/04/08 12:54
End of Day Share Price2020/04/08 00:00
Earnings2019/12/31
Annual Earnings2019/03/31


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.