One of India’s largest oil marketing and refining enterprises is the Indian Oil Corporation. The company’s share price has always been a subject of curiosity for investors due to its significant presence in both the domestic and international markets. What is the share price target for Indian Oil Corporation? Can I buy IOC in March 2024?
To establish the prospective share price target for Indian Oil Corporation. between 2024 and 2030, we will examine the company’s financials, recent developments, and market trends in this article. So, let’s investigate and see if this stock is worthwhile to buy.
About Indian Oil Corporation
Indian Oil Corporation, a premier integrated energy major in India, stands as a beacon of excellence in the oil, gas, petrochemicals, and renewable energy sectors. With an expansive network of over 58,000 customer touch-points, 34,000 fuel stations, and a refining capacity of 70.05 MMTPA, IndianOil delivers essential petroleum products and services to millions of Indians daily.
Beyond its impressive operational scope, the corporation is also at the forefront of sustainable initiatives, championing research in hydrogen, promoting green energy with solar and wind capacities, and actively engaging in social responsibility projects across healthcare, education, empowerment, and environmental stewardship.
What kind of business is IOC in?
Indian Oil Corporation (IndianOil) operates in various sectors within the energy industry. It is a diversified and integrated energy major with a significant presence in the following business segments:
- Oil Refining: IndianOil is a major player in oil refining, with a refining capacity of 70.05 million metric tonnes per annum (MMTPA). It refines crude oil into various petroleum products like petrol, diesel, aviation fuel, and more.
- Marketing and Distribution: IndianOil operates over 34,000 fuel stations across India, reaching every corner of the country. It markets and distributes a wide range of petroleum products to consumers, ensuring a steady supply of fuels.
- Petrochemicals: IndianOil is a significant player in the petrochemical industry, with a petrochemical production capacity of nearly 3,200 KTA (kilotonnes per annum). It produces a variety of petrochemical products used in manufacturing and various industries.
- Renewable Energy: IndianOil has ventured into renewable energy sources like solar and wind. It has a solar PV capacity of around 70 MW and a wind capacity of 168 MW, contributing to India’s clean energy goals.
- Research and Development: IndianOil’s R&D Center in Faridabad is a hub for downstream petroleum research. The centre develops advanced technologies, innovative products, and solutions for the energy industry.
- City Gas Distribution (CGD): IndianOil is a leading player in the City Gas Distribution sector, providing natural gas to households, industries, and vehicles in cities across India.
- Alternative Fuels: IndianOil is actively involved in research and development related to alternative fuels, including hydrogen production, storage, and applications like fuel cells. It is also investing in Green Hydrogen Plants and is a promoter of sustainable transportation through initiatives like the SATAT scheme.
- Corporate Social Responsibility (CSR): IndianOil is committed to social responsibility, engaging in initiatives related to healthcare, education, women empowerment, environmental sustainability, and more.
- Battery Technology: IndianOil collaborates with partners to explore and commercialize innovative battery technologies, such as the Aluminium-Air Battery technology in collaboration with Phinergy Limited.
Indian Oil Corporation’s business spans a wide range of energy-related sectors, including oil refining, marketing and distribution, petrochemicals, renewable energy, research and development, alternative fuels, city gas distribution, and socially responsible initiatives.
Indian Oil Corp. (IOCL) Q4 FY24 Highlights
- Indian Oil Corporation’s Q4 2024 results, announced on April 30, 2024, depict a challenging financial scenario.
- Revenue declined by 3.06% year-on-year, with a further decrease of 1.43% compared to the previous quarter.
- Profit plummeted by 49.96% year-on-year and 42.98% quarter-on-quarter, indicating significant financial strain.
- Operating income witnessed a notable decline, down by 33.75% quarter-on-quarter and 45.34% year-on-year.
- Selling, general, and administrative expenses surged by 7.55% quarter-on-quarter and 21.79% year-on-year, exacerbating financial pressures.
- Earnings per share (EPS) for Q4 stood at ₹3.78, marking a substantial 50.37% decrease year-on-year.
- Indian Oil Corporation faces significant challenges in restoring investor confidence and navigating through the volatile market conditions.
Below are the trading platforms that you can use to purchase Indian Oil Corporation shares:
➤ Zerodha
➤ Upstox
➤ Groww
➤ AngelOne
➤ ICICIDirect
| When | Maximum Price | Minimum Price |
| May 2024 | 175.64 | 152.73 |
| June 2024 | 181.96 | 158.23 |
| July 2024 | 180.14 | 156.64 |
| August 2024 | 187.35 | 162.91 |
| September 2024 | 194.84 | 169.43 |
| October 2024 | 191.02 | 166.10 |
| November 2024 | 198.66 | 172.75 |
| December 2024 | 200.65 | 174.48 |
In May 2024, IOC’s shares are expected to fluctuate between a maximum price of ₹175.64 and a minimum price of ₹152.73. Moving into June, prices may rise, with projections ranging from ₹181.96 to ₹158.23. July could see a slight dip, with prices anticipated to range between ₹180.14 and ₹156.64. As the year progresses, prices are projected to increase steadily, reaching ₹200.65 (max) and ₹174.48 (min) by December 2024.
| When | Maximum Price | Minimum Price |
| January 2025 | 202.65 | 155.89 |
| February 2025 | 204.70 | 157.46 |
| March 2025 | 209.00 | 160.77 |
| April 2025 | 206.93 | 159.18 |
| May 2025 | 200.90 | 154.54 |
| June 2025 | 209.94 | 161.49 |
| July 2025 | 205.83 | 158.33 |
| August 2025 | 212.19 | 163.22 |
| September 2025 | 214.74 | 165.18 |
| October 2025 | 220.32 | 169.48 |
| November 2025 | 225.83 | 173.72 |
| December 2025 | 235.99 | 181.53 |
As we step into January 2025, IOC’s shares are expected to trade between ₹202.65 (maximum) and ₹155.89 (minimum), with February projecting a range of ₹204.70 to ₹157.46. March may witness further increases, with prices ranging from ₹209.00 to ₹160.77. As the months progress, IOC’s share prices are anticipated to fluctuate, reaching a maximum of ₹235.99 and a minimum of ₹181.53 by December 2025.
| When | Maximum Price | Minimum Price |
| January 2026 | 243.07 | 186.98 |
| February 2026 | 237.00 | 182.30 |
| March 2026 | 241.74 | 185.95 |
| April 2026 | 246.67 | 189.75 |
| May 2026 | 244.23 | 187.87 |
| June 2026 | 250.33 | 192.56 |
| July 2026 | 245.42 | 188.79 |
| August 2026 | 253.01 | 194.63 |
| September 2026 | 258.07 | 198.52 |
| October 2026 | 264.78 | 203.68 |
| November 2026 | 271.40 | 208.77 |
| December 2026 | 278.19 | 213.99 |
| When | Maximum Price | Minimum Price |
| January 2027 | 280.97 | 216.13 |
| February 2027 | 288.18 | 221.67 |
| March 2027 | 299.41 | 230.32 |
| April 2027 | 293.54 | 225.80 |
| May 2027 | 284.99 | 219.23 |
| June 2027 | 297.82 | 229.09 |
| July 2027 | 291.98 | 224.60 |
| August 2027 | 301.01 | 231.55 |
| September 2027 | 311.54 | 239.65 |
| October 2027 | 319.64 | 245.88 |
| November 2027 | 327.64 | 252.03 |
| December 2027 | 335.83 | 258.33 |
| When | Maximum Price | Minimum Price |
| January 2028 | 342.54 | 263.49 |
| February 2028 | 351.33 | 270.25 |
| March 2028 | 365.03 | 280.79 |
| April 2028 | 357.87 | 275.28 |
| May 2028 | 347.45 | 267.27 |
| June 2028 | 363.08 | 279.29 |
| July 2028 | 355.96 | 273.82 |
| August 2028 | 366.97 | 282.29 |
| September 2028 | 379.82 | 292.17 |
| October 2028 | 389.69 | 299.76 |
| November 2028 | 399.43 | 307.26 |
| December 2028 | 409.42 | 314.94 |
| When | Maximum Price | Minimum Price |
| January 2029 | 417.61 | 321.24 |
| February 2029 | 428.32 | 329.47 |
| March 2029 | 445.02 | 342.32 |
| April 2029 | 436.29 | 335.61 |
| May 2029 | 423.59 | 325.84 |
| June 2029 | 442.65 | 340.50 |
| July 2029 | 433.97 | 333.82 |
| August 2029 | 447.39 | 344.15 |
| September 2029 | 463.05 | 356.19 |
| October 2029 | 475.09 | 365.45 |
| November 2029 | 486.96 | 374.59 |
| December 2029 | 499.14 | 383.95 |
| When | Maximum Price | Minimum Price |
| January 2030 | 509.12 | 391.63 |
| February 2030 | 522.18 | 401.67 |
| March 2030 | 542.54 | 417.34 |
| April 2030 | 531.90 | 409.16 |
| May 2030 | 516.41 | 397.24 |
| June 2030 | 539.65 | 415.11 |
| July 2030 | 529.07 | 406.98 |
| August 2030 | 545.43 | 419.56 |
| September 2030 | 564.52 | 434.25 |
| October 2030 | 579.20 | 445.54 |
| November 2030 | 593.68 | 456.68 |
| December 2030 | 608.52 | 468.09 |
Throughout January 2030, IOC’s shares are projected to trade between ₹509.12 (maximum) and ₹391.63 (minimum), with February anticipating a range of ₹522.18 to ₹401.67. March is likely to witness further increases, with prices ranging from ₹542.54 to ₹417.34. As the months progress, IOC’s share prices are expected to fluctuate, reaching a maximum of ₹608.52 and a minimum of ₹468.09 by December 2030.
Financial Condition of Indian Oil Corporation (IOC): Last 5 years
Indian Oil Corporation has experienced fluctuating growth over the last five years.
| Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | |
| Sales + | 483,763 | 363,950 | 589,321 | 841,756 | 776,352 |
| Expenses + | 467,710 | 324,021 | 541,563 | 811,010 | 700,761 |
| Operating Profit | 16,053 | 39,929 | 47,758 | 30,745 | 75,591 |
| OPM % | 3% | 11% | 8% | 4% | 10% |
| Other Income + | -7,165 | 4,696 | 4,332 | 5,061 | 5,389 |
| Interest | 5,792 | 2,933 | 5,454 | 7,588 | 7,826 |
| Depreciation | 10,273 | 10,941 | 12,348 | 13,181 | 15,866 |
| Profit before tax | -7,177 | 30,751 | 34,289 | 15,038 | 57,288 |
| Tax % | 74.00% | 29.00% | 25.00% | 22.00% | 25.00% |
| Net Profit + | -1,876 | 21,762 | 25,727 | 11,704 | 43,161 |
| EPS in Rs | -0.63 | 15.32 | 17.78 | 6.93 | 29.55 |
| Dividend Payout % | -437% | 51% | 46% | 42% | 41% |
The financial performance of the company over the past five years reflects a dynamic landscape marked by significant fluctuations. Sales figures surged from March 2020 to March 2023, reaching an impressive ₹841,756 crores, showcasing the company’s capacity for revenue generation. However, there was a slight downturn in sales to ₹776,352 crores by March 2024, indicating potential market challenges or shifts in consumer demand.
Operating profit demonstrated a similar trend, experiencing peaks in March 2021 and March 2024, suggesting periods of robust operational efficiency. Despite these highs, maintaining consistent profitability proved challenging, as evidenced by fluctuations in net profit margins and negative earnings per share in March 2020 and March 2023. This indicates potential areas for operational refinement or cost management strategies to stabilize earnings and enhance shareholder value over time.
Moreover, the dividend payout percentage exhibited variability, with a substantial decrease from -437% in March 2020 to 41% in March 2024. This suggests a shift in the company’s dividend policy or capital allocation strategies, which could impact investor perceptions and shareholder returns. Overall, the financial data underscores the need for strategic adaptation and proactive measures to navigate the evolving market landscape effectively and ensure long-term sustainability and growth.
Motilal Oswal advises investors to buy Indian Oil Corporation Shares, setting a target price of Rs 195.00.
FAQS
As of May 4th, 2024, the current price for the shares of Indian Oil Corporation is set at ₹171.
As per our prediction, Indian Oil Corporation is expected to reach a maximum of ₹200.65 by the end of December 2024
IOC share price target for 2025 shows IOC could be trading ₹235.99 and ₹154.54. We do not think the Indian Oil Corporation may reach Rs. 500 by 2025.
What is the growth potential of Indian Oil Corporation?
Indian Oil Corporation has significant growth potential due to its dominant market position in the Indian oil and gas industry and its expansion into new sectors such as electric vehicle charging and renewable energy.
What are the financials of Indian Oil Corporation in the last five years?
Indian Oil Corporation has shown a mixed financial performance in the last five years, with revenue growth fluctuating and net profit showing a decline in some years.
Several factors such as global crude oil prices, government policies, competition, and the Indian economy can affect the share price of Indian Oil Corporation.
What is the dividend history of Indian Oil Corporation?
Indian Oil Corporation has a good dividend history, with a high dividend payout ratio in some years.
It is recommended to conduct thorough research and analysis before investing in Indian Oil Corporation shares, as the market can be volatile.
ALSO READ:
- BHARAT ELECTRONICS SHARE PRICE TARGET
- SBI CARDS AND PAYMENT SERVICES SHARE PRICE TARGET
- MARICO SHARE PRICE TARGET
In conclusion, Indian Oil Corporation’s financial journey over the past five years reflects a mix of achievements and challenges. While the company demonstrated robust revenue growth and operational efficiency during certain periods, it also faced fluctuations in profitability and dividend payouts. The slight downturn in sales by March 2024 and the variability in net profit margins underscore the need for strategic adaptation and prudent financial management to address market challenges effectively. Despite these fluctuations, Indian Oil Corporation’s dominant market position in the Indian oil and gas industry, coupled with its expansion into new sectors such as electric vehicle charging and renewable energy, suggests significant growth potential in the future. Investors should conduct thorough research and analysis before making investment decisions, considering factors such as global crude oil prices, government policies, competition, and the overall economic landscape.
The decision to invest in Indian Oil Corporation shares depends on individual investment goals and market conditions. It is recommended to consult with a financial advisor before investing. According to our analysis, I would avoid investing in Indian Oil Corporation as of May 4, 2024.
Even if I invest, I will only invest a small amount, that too in dips.
What did we learn?
- 1 About Indian Oil Corporation
- 2 What kind of business is IOC in?
- 3 Indian Oil Corp. (IOCL) Q4 FY24 Highlights
- 4 How to purchase Indian Oil Corporation (IOC) shares?
- 5 Indian Oil Corporation Share Price Prediction: 2024, 2025 to 2030
- 6 Financial Condition of Indian Oil Corporation (IOC): Last 5 years
- 7 Motilal Oswal on Indian Oil Corporation Share Price
- 8 FAQS
- 8.1 What is the current share price of Indian Oil Corporation?
- 8.2 What is the share price target of IOC by 2024?
- 8.3 Can IOC’s share price reach 500 INR by 2025?
- 8.4 What is the growth potential of Indian Oil Corporation?
- 8.5 What are the financials of Indian Oil Corporation in the last five years?
- 8.6 What are the factors affecting IOC’s share price?
- 8.7 What is the dividend history of Indian Oil Corporation?
- 8.8 What are the recommendations of experts for investing in Indian Oil Corporation shares?
- 9 Conclusion: Is it a good time to invest in Indian Oil Corporation shares?
Twitter
Linkedin
