Indian Oil Corporation Limited is a publicly-owned oil marketing company headquartered in Delhi, the national capital. It is one of the biggest entities in India by networth.
The market capitalisation of Indian Oil Corporation Limited, popularly known as Indian Oil, was Rs.191,905.36 crore. It offers you a beginning point for assessment.
Company’s wealth and recent performance
- The sales turnover of Indian Oil Corporations was up 18.28% to Rs.13,08,650 million in the third quarter ended 31 December 2017 compared to the previous quarter.
- The oil marketing company produced an 18.88% rise in the overall revenue. Operating profits were also up 83.67% to Rs.1,46,222 million during the Q3 of the FY 2017-2018.
- From Rs.36,962.90 million, the net profits of the oil company were up to Rs.78,832.20 million. It has increased at 113.27%.
- The Earnings per Share of the company accelerated to Rs.16.63 in the Q3 ended on 31 December 2017 from Rs.7.80.
- IOL registered an inventory hike of Rs.6,301 crore on refined commodities and crude. A dividend of Rs.19 was declared by Indian Oil Corporation Limited during the same quarter.
Indian Oil stock trends 2016
- The stock price of Indian Oil Corporation Limited at the beginning of 2016 was Rs.216. Further, it climbed to Rs.220.77 within the first 7-8 days since the company had announced to invest Rs.21,000 crore in augmenting the quality of fuels marketed by it. The share price slid to Rs.201.15 by the end of January 2016 since there were major announcements.
- The oil marketing company had a few changes in the management in February 2016. The equities of IOC were short in demand. As a result, the share price was Rs.183 towards the end of the month. It began recouping again in the month of March.
- It was decided by the oil marketing company to make an investment of Rs.45,000 crore to enrich the quality of its products. Undoubtedly, this is a major event. Due to which, the share price of IOC further accelerated to Rs.216.62 in April. The stock was priced at Rs.201.50 by the end of May.
- June 2016 closed with the stock price of Rs.220.50. The highest price was recorded at Rs.222.50 and the lowest price at Rs.203.78 in the month. The equities extended to climb till the next month. The company had registered a few strong fundamentals in July, and a result, the stock of Indian Oil Corporation accelerated to Rs.272.20 towards the end of the month.
- The company had gained more than 4% on a bonus issue plan. Besides, the board had decided to consider the bonus issue in August. These were the positive notes from the stance of investors. Due to which, the stock rates of IOC reached to Rs.286.77 at the month’s end.
- The share prices of IOC had produced a growth rate of 1.23% in September. In the following month, the growth rate was 11.12%. The highest price in these two months was Rs.333.30 and the lowest rate was Rs.275.15.
- At the beginning of November, the market value of IOC stocks further fell to Rs.306.70. IOC had signed a business accord in the last month. Moreover, the equities had gained demand marginally. These could the reasons why the stock value of Indian Oil Corporation Limited soared to Rs.325 by the end of 2016.
Indian Oil Corporation Limited stock trends 2017
- The year started with a positive trend since the quarterly results were in favour of stock investors. The company had reported a 29% hike in the net earnings. This is a strong indicator that made the stock prices of IOC to grow further to Rs.377.80 at the end of the first month.
- The demand for IOC stocks had been steady. Therefore, the closing price soared to Rs.385.05 in the month of February. The growth rate was 0.52% in March. Between January and March, the equities of the oil company were retailed at the highest price of Rs.404. The lowest rate had been Rs.391.
- In April, Indian Oil had joined the league of Rs.2 lakh crore market capitalisation. The enterprise had also announced a few other major events. So, the growth rate in the stock prices of IOC was up 13.69% to Rs.440.05.
- The stock performance was not healthy in May, June and July. The share prices of IOC were down by 2.41%, 10.30% and 4.56% respectively. Due to strong fundamentals, the company had accomplished a hike of 23.68% by August.
- There were a few hints for stock investors to buy the equities of IOC, which has been listed on the National Stock Exchange (NSE) and the Bombay Stock Exchange (BSE). However, the share prices of IOC had slowly recouped to Rs.415.50 in October.
- Due to poor demand, the market value of IOC stocks was down 5.29% to Rs.393.50 in November. In the last month, it was further down 1.2% to Rs.388.55. Except a change in the directorship, there were no noticeable hints for stock investors.
Should I invest in IOC stocks?
- It is a great question. Whether or not to hold the stocks of any company largely depends upon qualitative and quantitative factors. The qualitative aspects could be the brand reputation, the history, etc. Conversantly, the quantitative aspects could be the financial aspects.
- Indian Oil Corporation Limited is a well-known brand for petroleum products. Since inception, it is recognised for premier quality services and products. It is listed on both the BSE and NSE stock exchanges. Unquestionably, the qualitative aspects of Indian Oil Corporation Limited have been positive from the perspective of equity investors.
- The stock investment tips and strategies will be different for short-term stock investors and long-term stock investors. If you are intending to invest in IOC stocks for a shorter period of time, be advised to follow the readings of the technical analysis. Considering the past financial performance may be a better idea if you are willing to invest for a long-run. Networth is the biggest indicator. Over the last five financial years, the networth and net profit margins of Indian Oil increased steadily. The company is highly liquid according to solvency ratios.
- Here is something interesting to notice. According to analysts, holding oil stocks such as Indian Oil Corporations may not be a great idea, especially in the long-run. Why? The government can alter practices whenever required. It may decide to unveil extraordinary dividends in order to finance their budgets. The profit margin of oil marketing companies will decline when the price of crude oil increases significantly.
- The short-term investments in the stocks of Indian Oil may be considered. As of 14 March 2018, IOC stocks may be sold at Rs.395 as per a 5-day moving average. As per a 20-day moving average, investors may ponder selling the stocks at Rs.402.17. Short-term stock investments may yield better returns compared to long-term stock investments.
Indian Oil Corporation Limited is a BSE and NSE listed oil marketing company. In 2016, it was ranked first in Fortune India 500 list and in 2017, Indian Oil was ranked 168th in Fortune’s Global 500. The total number of employees was 33,135 as of March 2017. The oil company functions with seven major business branches, which include Research and Development Branch, Pipelines Branch, Refineries Branch, Petrochemicals Branch, Explosive Branch, Refineries Branch and Production Branch. More than 50% market share of petroleum products is owned by Indian Oil. Out of 23 refineries in India, Indian Oil Corporation Limited owns 11.
History of Indian Oil Corporation Limited
- Indian Oil Corporation (IOC) was commenced in 1959. Indian Refineries was merged with Indian Oil in 1964. In 2005, Indian Oil had signed an exploration and sharing agreement with the national Oil Corporation of Libya. It was recognised as the top oil marketing enterprise amid domestic oil marketing companies.
- In 2006, Chennai-Trichy-Madurai product pipeline was dedicated to the country. Kandla-Bhatinda product pipeline was converted to crude oil service.
- In 2007, the capacity of Panipat Refinery was doubled. The concept of “LNG at the Doorstep” was introduced by Indian Oil.
- In 2008, Indian Oil had introduced SERVO lubricants in Oman. In 2009, the new mission with value was adopted.
Management of Indian Oil
Sanjiv Singh is currently serving as Chairman at India Oil with more than 30 years of experience. He is a Chemical Engineer from IIT Roorkee. Chennai Petroleum Corporation Limited, a subsidiary of Indian Oil, is also led by him. In 1981, Sanjiv Singh joined in 1981. Prior to this position, he was the director at IOC. He is capable of bringing valuable changes through his extensive domain experience and knowledge.
A K Sharma has been currently working as Director-Finance at Indian Oil Corporation Limited. He is a Law and Commerce graduate. A K Sharma is also a Chartered Accountant. In 1983, he joined IOC and has more than 30 years of experience in the petroleum sector. Various finance assignments have been handled by him in the refinery and marketing branches at this oil company. His expertise includes Treasury Operations, Project Finance etc.
Indian Oil Bhavan,
G-9, Ali Jung Marg, Bandra (East)
Mumbai, Maharashtra 400051
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