Stock Analysis Report: Indian Oil Corporation Ltd
Date: 27th Apr 2024 NSE Code: IOC
BSE Code: 530965
Company Brief:
Indian Oil Corporation Ltd, a Maharatna Company under the control of the Government of India, boasts a diversified portfolio spanning 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, the company holds a dominant position in India's oil refining and petroleum marketing sector.
Rationale behind the Research Recommendation:
Technical Analysis:
Consolidation Phase: The stock is presently in a consolidation phase, indicating a period of market indecision and potential accumulation.
Breakout Potential: A decisive close above ₹175 could signal a breakout pattern, suggesting a shift towards bullish sentiment and potential upward momentum.
Moving Averages: The CMP of the stock is positioned above its 7-day, 21-day, and 50-day Exponential Moving Averages (EMA), indicating short to medium-term bullish sentiment.
Bollinger Bands: The Bollinger Bands are currently contracting, suggesting decreased volatility and a potential upcoming breakout on the upside.
Relative Strength Index (RSI): The RSI level of the stock is above +50, indicating positive momentum and strength in the current trend.
Fundamental Analysis:
Face Value: ₹10 | Stock P/E: 5.17 |
Book Value: ₹118 | Current Ratio: 0.78 |
Dividend Yield: 2.91% | Debt to Equity: 0.69 |
ROCE: 8.09% | Sales growth 3 Years: 20.3% |
ROE: 7.17% | Profit Var 3 Years: 30.7% |
Price to Book Value: 1.45 | EBIDT growth 3 Years: 21% |
Taking this into consideration, our view is bullish for this stock. Research Recommendation:
Recommendation | Buy |
Entry Point | 165-178 |
Price Targets | 210-250 |
Stop Loss | 148 (Closing basis) |
Time Frame | 1 Year |
( For Paper/Virtual Trading purposes only)
Disclaimers: 1. Investments in securities market are subject to market risks. Read all the related documents carefully before investing. Registration granted by SEBI and certification from NISM in no way guarantee performance of the intermediary or provide any assurance of returns to investors.
2. We do not give any assurance or guarantee of profit or protection from loss in any form. We only provide research recommendations. We do not provide any service based on profit sharing, fixed returns, or similar services.
3. The research analyst or research entity or his associate or his relative does not have financial interest in the subject company.
4. The research analyst or its associates or relatives does not have actual/beneficial ownership of one percent or more securities of the subject company, at the end of the month immediately preceding the date of publication of the research report/ document or date of the public appearance.
5. The research analyst or his associate or his relative does not have any other material conflict of interest at the time of publication of the research document or at the time of public appearance.
6. The research analyst or its associates does not have received any compensation from the subject company in the past twelve months. The research analyst or its associates does not have managed or co-managed a public offering of securities for the subject company in the past twelve months.
7. The research analyst or its associates does not have received any compensation for investment banking or merchant banking or brokerage services from the subject company in the past twelve months.
8. The research analyst or its associates does not have received any compensation for products or services other than investment banking or merchant banking or brokerage services from the subject company in the past twelve months. The research analyst or its associates have not received any compensation or other benefits from the subject company or third party in connection with the research document.
9. The research analyst has not been engaged in market-making activity for the subject company. The research analyst has not served as an officer, director or employee of the subject company.
10. The research analyst did not receive any compensation or other benefits from the companies mentioned in the documents or third parties in connection with the preparation of the research documents. Accordingly, the research Analyst does not have any material conflict of interest at the time of publication of the research documents. 11. Investing in equity and related instruments involves uncertainties, including company-specific and market-related risks. There is no guarantee of returns for such investments. Recommendations provided may not always result in profits.
12. Equity Markets can show large fluctuations in price, even in short periods which may impact on the accuracy and performance of the recommended stock. Aditya Hujband
(SEBI Registered Research Analyst) Registration No. INH000011185