IOC.NS
Indian Oil Corporation Ltd (IOC.NS) holds a significant position within India's oil and gas industry, with a market capitalization of ₹2047.43 billion. The stock's Price-to-Earnings (P/E) ratio stands at 11.38, suggesting the stock is relatively affordable compared to its earnings, appealing to value-focused investors.
The Return on Equity (ROE) of 10.09% indicates moderate efficiency in generating returns for shareholders. However, the company's debt-to-equity ratio of 88.03 implies a dependence on debt financing, which can be a concern unless managed appropriately.
A current ratio of 0.687 indicates challenges in meeting short-term liabilities, suggesting potential liquidity issues that need to be monitored. Furthermore, the financial results report an operating margin of -0.34%, highlighting challenges in generating profit from operational activities.
Indian Oil's negative free cash flow of -₹315.40 billion poses concerns regarding its ability to fund operations and future growth projects without external financing. However, the company's price-to-book ratio of 1.13 indicates market confidence slightly above its book value, potentially a reassuring sign to investors.
The revenue growth has declined slightly by 2.4%, which could be attributed to various factors such as market conditions or competition. Nonetheless, the EBITDA margin stands at 5.66%, which reflects some level of operational profit, albeit lower compared to its peers.
Institutional investors own 14.23% of IOC's shares, suggesting moderate external trust in the organization's potential and stability amidst the oil industry's fluctuations.
Overall, this overview emphasizes IOC's mixed financial standing, with both hurdles and positive opportunities for investors. These insights can be pivotal for investors evaluating IOC's potential for long-term returns in a volatile market.
Last Updated: January 14, 2025
| Metric | Value |
|---|---|
| Market Cap | 1792.69 B |
| P/E Ratio | 9.97 |
| ROE | 10.09 % |
| Debt to Equity | 88.031 |
| Operating Margin | -0.34 % |
| Free Cash Flow | -315403304960 |
| Institutional Holdings | 13.88 % |
| Revenue Growth | -2.40 % |
Indian Oil Corporation's competitive landscape in the energy sector involves both state-owned and private companies:
- Refining: Key competitors include Reliance Industries Ltd, Bharat Petroleum Corporation Ltd, and Hindustan Petroleum Corporation Ltd.
- Marketing & Distribution: Includes competition in retail fuel outlets, LPG distribution, and lubricants, with players like Reliance, BPCL, and HPCL.
- Petrochemicals: Reliance is a major competitor in the petrochemicals segment.
- Pipeline Infrastructure: Competition involves maintaining an extensive pipeline network for efficient distribution.
Indian Oil maintains a dominant position in India's energy sector, benefitting from a strong government backing and an extensive operational network. However, it faces challenges such as regulatory constraints, fluctuating global oil prices, and rising competition from private entities like Reliance Industries. Continuous innovation, infrastructure investments, and customer engagement strategies remain key to sustaining its leadership position.
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