[Infographics] IOC | Understand The Fundamental Background Of IOC (Indian Oil Corporation Ltd) Now!

Indian Oil Corporation Ltd (IOC) is a Maharatna Company controlled by GOI that has business interests straddling the entire hydrocarbon value chain – from Refining, Pipeline transportation, and marketing of Petroleum products to R&D, Exploration & production, marketing of natural gas, and petrochemicals. 

It has a leadership position in the Oil refining & petroleum marketing sector of India.

Refining Capacity
The Largest Refining Company in India. The company owns 11 refineries across India with a total capacity of 81.2 MMTPA. It possesses 32% of the total refining capacity of India.
Two of its refineries in Chennai are owned by its subsidiary Chennai Petroleum Corporation Ltd of which the company owns 52% stake.

Capacity Utilization
The company’s refineries have been operating at 100% capacity utilization rates for the past 3 years.

Pipeline Network
Presently, the company has ~14,500 km of pipelines spread across India with a total capacity of ~95 MMTPA liquid pipeline capacity and ~21.7 MMSCMD Gas pipelines capacity.
It owns ~73% of Crude Pipelines and ~52% of Product pipelines that are spread across India. The average capacity utilization of pipelines for the past 3 years has been ~92%.

Revenue Breakup
Presently, High-speed diesel (HSD) accounts for ~49% of revenues, followed by Motor spirit (20%), liquefied petroleum gas (11%), Aviation turbine fuel (5%), Superior Kerosene Oil (2%), and others (13%).

Customer Touch-Points
Presently, the company operates ~29,000 retail outlets (petrol pumps), ~12,500 LPG distributors, ~7,000 bulk consumer pumps, and ~3,900 SKO/ LDO Dealerships.
The company is a leader in market infrastructure and controls 42% of retail outlets, 50% LPG distributorships, and 47% of Aviation Fuel stations in India

Research & Development
The company’s flagship R&D center at Faridabad is one of Asia’s finest in downstream petroleum R&D, with ~930 active patents. It has 4 decades of experience in lubricants formulations, refinery processes, and pipeline transportation. It spent ~430 crores on R&D in FY20.

Crude Imports
The company fulfills its crude oil requirements by importing crude from across the world. It sources 61% of its needs from the Middle East, followed by Africa (27%), North America (7%), South-East Asia (3%), and Central Asia (2%).

Geographical Presence
The company also has a presence in Sri Lanka, Mauritius, UAE, Singapore, Sweden, the USA, and the Netherlands through its subsidiaries.

Major Projects
In FY20, the company spent ~17,000 cr INR for upgrading its refineries to produce BS-VI compliant fuels.

The company is working on a major Ethylene Glycol Project at its new refinery in Paradip with an estimated cost of ~5,700 crores.

The company got approval for the implementation of a new 9 MMTPA facility at Cauvery Basin, Tamil Nadu. It will be built in a JV wherein the company will hold ~ 25% of the shareholding. The estimated cost of the project is ~29,000 crores.

Important Subsidiaries

Chennai Petroleum Corporation Ltd (52% stake) – The company is involved in the refining of petroleum products and owns 2 refining facilities in Tamil Nadu with a capacity of ~12 MMTPA.

IOCL Singapore Pte Ltd – It is a wholly-owned subsidiary of the company that is involved in the trading operations for procurement of Crude oil, Import/ Export of petroleum products, and Investment company for E&P assets and others.

Petronet LNG Ltd (12.5% stake) – It is an associate of the company that develops, designs, constructs, owns, and operates LNG import and regasification terminals in India.

IOC Stock Index Presence

NIFTYENERGYNIFTY100WEIGHTNIFTYEQWGTNIFTY100NIFTY
NIFTY500NIFTYLGEMID250NIFTY200NV20NIFTYCDTY
NIFTYINFRASTLIQ15NIFTYPSENIFTYDIVOPPTNIFTY500VAL50
NIFTYLOWVOLSNXT50BSE500OILGASSNSX50
BSE100BSEPSUENERGYBSE200LMI250
ALLCAPLRGCAPBSE100LARGECAPTMCBHRT22CARBONEX
CPSES&PDIVSTABLESPBSEVIPS&P LARGEMIDCAP 

IOC Today

INDIAN OIL CORP
IOC.NS
₹ 127.75
1.35%
Marketcap
1.20T
Volume
₹ 11,780,563.00
Shares
9,414,160,384
Range
₹ 125.65 - ₹ 129.00
52 Week Range
₹ 86.85 - ₹ 141.50
INDIAN OIL CORP
sectorEnergy
industryOil & Gas Refining & Marketing
address3079/3, J.B. Tito Marg, New Delhi, India
countryIndia
phone1800 2333 555
websitehttps://www.iocl.com
INDIAN OIL CORP
₹ 127.75
Open ₹ 126.05
High ₹ 129.00
Marketcap 1.20T
Close ₹ 127.75
Low ₹ 125.65
Volume ₹ 11,780,563.00

IOC Chart

IOC Infographics

IOC Stock Infographics
IOC Stock Infographics by Kamlesh Rode, designed in Figma.com

IOC Overview

IOC Stock Infographics - Overview
IOC Stock Infographics – Overview

Key takeaways

  • Intrinsic value of this stock is lower than current price.
  • IOC stock gave high return compare to Fixed-deposits.
  • This stock offered high dividend in past.
  • This stock is not in ASM/GSM list.
PE RatioSector PEPB RatioSector PBDividend YieldSector Div Yld
5.2217.7111.659.76%1.99%

Read more about PE ratio with infographics | Read more about dividend and dividend yield with infographics

Financials of IOC

IOC Stock Infographics - Financials
IOC Stock Infographics – Financials

Income Table

Financial YearFY 2018FY 2019FY 2020FY 2021
Total Revenue4,25,822.855,32,256.164,87,902.743,68,645.94
EBITDA45,988.9939,358.768,888.3444,624.94
PBIT38,325.4530,852.31-1,385.0533,683.49
PBT34,450.2225,926.90-7,177.0130,750.73
Net Income22,189.4517,376.70-893.1421,638.21
EPS23.4118.62-0.9723.57
DPS219.254.2512
Payout ratio0.90.50.51
EPS and DPS in ₹. Other numbers except for Payout Ratio in ₹ cr

Income Statement

Lower than Industry Revenue Growth

Over the last 5 years, revenue has grown at a yearly rate of 1.05%, vs industry avg of 5.51%

Higher than Industry Net Income

Over the last 5 years, net income has grown at a yearly rate of 12.47%, vs industry avg of 11.63%

Decreasing Market Share

Over the last 5 years, market share decreased from 32.62% to 26.29%

Balance Sheet Table

Financial YearFY 2018FY 2019FY 2020FY 2021
Current Assets1,05,700.441,29,770.301,10,960.161,16,437.86
Non Current Assets1,90,159.522,05,592.212,19,001.552,38,707.23
Total Assets2,95,859.963,35,362.513,29,961.713,55,145.09
Current Liabilities1,40,089.231,60,926.281,61,742.721,62,404.06
Non Current Liabilities39,745.6960,089.6371,944.8179,927.04
Total Liabilities1,79,834.922,21,015.912,33,687.532,42,331.10
Total Equity1,16,025.041,14,346.6096,274.181,12,813.99
Total Liabilities &
Shareholder’s Equity
2,95,859.963,35,362.513,29,961.713,55,145.09
Total Common Shares Outstanding947.87918.1918.1918.1
Shares outstanding numbers in cr. Other numbers in ₹ cr

Balance Sheet

Higher than Industry Debt to Equity Ratio

Over the last 5 years, debt to equity ratio has been 88.05%, vs industry avg of 78.61%

Lower than Industry Current Ratio

Over the last 5 years, current ratio has been 73.79%, vs industry avg of 75.75%

Cash Flow Table

Financial YearFY 2018FY 2019FY 2020FY 2021
Net Change in Cash-10.77614.36501.52-653.37
Changes in Working Capital-10,231.58-22,071.362,808.055,047.42
Capital Expenditures10,526.6510,333.8512,337.436,566.16
Free Cash Flow18,588.642,412.67-5,191.1843,295.57
All numbers in ₹ cr

Peers of IOC

IOC Stock Infographics - Peers
IOC Stock Infographics – Peers
StockPE RatioPB RatioDividend Yield
Indian Oil Corporation Ltd5.2219.76%
Reliance Industries Ltd32.792.010.29%
Bharat Petroleum Corporation Ltd4.941.4920.68%
Hindustan Petroleum Corp Ltd3.981.127.78%

Key takeaways

  • IOC have lowest PE ratio compared to peers
  • IOC gave more than 9% dividend yield than peers.
  • Reliance Industries have PE ratio more than 32.

Read more about PE ratio with infographics and Dividend infographics

IOC Shareholdings

IOC Stock Infographics - Shareholding
IOC Stock Infographics – Shareholding

Promoter Holdings Trend

Total Promoter Holding

In last 6 months, promoter holding in the company has almost stayed constant

Low Pledged Promoter Holding

Pledged promoter holdings is insignificant

Institutional Holdings Trend

Mutual Fund Holding

In last 3 months, mutual fund holding of the company has almost stayed constant

Foreign Institutional Holding

In last 3 months, foreign institutional holding of the company has almost stayed constant

InvestorsMar-19Jun-19Sep-19Dec-19Mar-20Jun-20Sep-20Dec-20Mar-21Jun-21Sep-21Dec-21
Promoters 52.1852.1851.551.551.551.551.551.551.551.551.551.5
FIIs 7.047.667.237.647.196.336.075.835.816.77.217.94
DIIs 13.7213.1314.2513.7913.413.8513.3713.5412.9812.374.5712.51
Government 0.110.110.110.110.110.110.110.110.110.110.110.11
Public 26.9526.9126.9126.9527.828.228.9529.0229.629.3136.627.94

IOC Dividend/Split

IOC Stock Infographics - Dividend/Split
IOC Stock Infographics – Dividend/Split

Dividend table

Cash DividendDividend/ShareEx Date
Interim 2₹4.009-Feb-22
Cash DividendDividend/ShareEx Date
Interim₹5.0011-Nov-21
Cash DividendDividend/ShareEx Date
Final₹1.505-Aug-21
Cash DividendDividend/ShareEx Date
Interim 2₹3.0023-Mar-21
Cash DividendDividend/ShareEx Date
Interim₹7.509-Feb-21

Dividend Trend

No Trend In Dividends

IOC has shown inconsistent dividend trend over the last 5 years

Dividend Yield

The current dividend yield is 9.59%. An investment of ₹1,000 in the stock is expected to generate a dividend of ₹95.89 every year

Stock Split table

BuybackRatioEx Date
Tender Offer21-Dec-18
BonusRatioEx Date
1:1 Bonus Issue of Equity Shares1:0115-Mar-18
BonusRatioEx Date
1:1 Bonus Issue of Equity Shares1:0118-Oct-16

Read more about dividend and dividend yield with infographics

Strength and Limitations

Strength

  • Company has a healthy Interest coverage ratio of 8.52.
  • Company’s PEG ratio is 0.00.
  • The company has an efficient Cash Conversion Cycle of 22.65 days.
  • The company has a good cash flow management; CFO/PAT stands at 1.53.

Limitations

  • The company has shown a poor profit growth of 0.76% for the Past 3 years.
  • The company has shown a poor revenue growth of -3.19% for the Past 3 years.

Expert Forecast

IOC Stock Infographics - Expert Forecast
IOC Stock Infographics – Expert Forecast

The stock forecast of IOC stock for the year 2023

HIGH

Rs. 210.00

MEDIAN

Rs. 154.68

LOW

Rs. 117.80

Future stock price targets of IOC stock

Target of IOCFuture Stock Price
2023 190 to 220
2025300 to 330
20301100 to 1200
20354000 to 4500
20409000 to 10000

Please Note

All the views and contents mentioned in this blog are merely for educational purposes and are not recommendations or tips offered to any person(s) with respect to the purchase or sale of the stocks/futures. I do not accept any liability/loss accruing from the use of any content from this blog. All readers of this blog must rely on their own discretion and neither any analyst nor any publisher shall be responsible for the outcome.

Stock Forecast Predictions

IOC Stock Infographics - Predictions
IOC Stock Infographics – Predictions

With the calculations on the basis of CAGR, the long-term investment in IOC stock comes very amazing numbers. Look at the table below (Investment value 12200)

Prediction of Wipro StockFuture Investments
After 1 yearRs.134200
5 yearRs.196482
10 yearRs.316437
15 yearRs.509624
20 yearRs.820755
25 yearRs.1321834
Future values are calculated using 10% CAGR (IOC)

Conclusion

Looking at the fundamentals of IOC with infographics, this company is very strong and going very well at the CAGR rate of 10% from the last 5 years. It is a good opportunity for long-term investors.

This company is very strong and leading in its core business and among the top leaders. Investors showed good interest in this stock.

Let’s look at the Matrics of IOC stock

PE RatioSector PEPB RatioSector PBDividend YieldSector Div Yld
5.2217.7111.659.76%1.99%

Check IOC on NSE Site

Frequently Asked Questions

Q: Is IOC a good buy for the long term?

A: Yes, IOC is a good choice for long-term investment. Its fundamental analysis proves how this stock is good for long-term investment.

Q: What is the target of IOC share for 2023?

A: As per calculations, the target price of IOC stock in 2023 will be in the range of 190-220.

Q: What is the target of IOC share for 2025?

A: As per calculations, the target price of IOC stock in 2025 will be in the range of 300-320.

Q: What is the future of IOC stock?

A: Looking at the fundamentals of IOC with infographics, this company is very strong and going very well at the CAGR rate of 10% from the last 5 years. It is a good opportunity for long-term investors.

Why Stock forecast by Kamlesh Rode?

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