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) Q3 FY23-24 Highlights
- Consolidated net profit for Q3 FY23-24: Rs 9,224.85 crore, a significant increase from last year.
- Sequential decline of 33% in net profit due to inventory losses and diesel crack reduction.
- Revenue from operations: Rs 2.26 lakh crore, surpassing market estimates, but down 2.6% YoY.
- Average gross refining margin (GRM) for FY24: $13.26 per barrel, down from last year.
- Petroleum EBIT: Rs 12,100 crore, showing substantial growth YoY.
- Petrochemical segment: Q3FY24 loss of Rs 196.21 crore, improvement from last year.
- Domestic product sales remained flat at 23.328 MMT.
- Refinery throughput: 18.502 MMT, Pipeline throughput: 25.212 MMT.
Below are the trading platforms that you can use to purchase Indian Oil Corporation shares:
➤ Zerodha
➤ Upstox
➤ Groww
➤ AngelOne
➤ ICICIDirect
| Month | Maximum Price (₹) | Minimum Price (₹) |
|---|---|---|
| March | ₹185.90 | ₹161.65 |
| April | ₹180.49 | ₹156.94 |
| May | ₹177.82 | ₹154.62 |
| June | ₹184.22 | ₹160.19 |
| July | ₹182.38 | ₹158.59 |
| August | ₹189.67 | ₹164.93 |
| September | ₹197.26 | ₹171.53 |
| October | ₹193.39 | ₹168.17 |
| November | ₹199.19 | ₹173.21 |
| December | ₹204.17 | ₹177.54 |
In 2024, Indian Oil Corporation’s maximum price for March is expected to be ₹185.90, with the minimum price anticipated at ₹161.65. Looking ahead to April, the maximum and minimum prices are projected to reach ₹180.49 and ₹156.94, respectively. As the year progresses, Indian Oil’s prices are forecasted to continue fluctuating, with December witnessing a maximum price of ₹204.17 and a minimum price of ₹177.54.
| Month | Maximum Price (₹) | Minimum Price (₹) |
|---|---|---|
| January | ₹208.26 | ₹160.20 |
| February | ₹213.60 | ₹164.31 |
| March | ₹221.93 | ₹170.71 |
| April | ₹217.58 | ₹167.37 |
| May | ₹211.24 | ₹162.49 |
| June | ₹220.74 | ₹169.80 |
| July | ₹216.42 | ₹166.47 |
| August | ₹223.11 | ₹171.62 |
| September | ₹230.92 | ₹177.63 |
| October | ₹236.92 | ₹182.25 |
| November | ₹242.84 | ₹186.80 |
| December | ₹248.92 | ₹191.47 |
Throughout 2025, Indian Oil Corporation (IOC) is poised to experience fluctuating prices. In January, IOC’s prices are expected to range between ₹208.26 and ₹160.20. As the year progresses, the trend continues, with prices gradually increasing each month, culminating in December with a projected range of ₹248.92 to ₹191.47.
| Month | Maximum Price (₹) | Minimum Price (₹) |
|---|---|---|
| January | ₹256.38 | ₹197.22 |
| February | ₹262.96 | ₹202.27 |
| March | ₹273.21 | ₹210.16 |
| April | ₹267.86 | ₹206.04 |
| May | ₹260.05 | ₹200.04 |
| June | ₹271.76 | ₹209.04 |
| July | ₹266.43 | ₹204.94 |
| August | ₹274.67 | ₹211.28 |
| September | ₹284.28 | ₹218.68 |
| October | ₹291.67 | ₹224.36 |
| November | ₹298.96 | ₹229.97 |
| December | ₹306.44 | ₹235.72 |
| Month | Maximum Price (₹) | Minimum Price (₹) |
|---|---|---|
| January | ₹312.57 | ₹240.44 |
| February | ₹320.58 | ₹246.60 |
| March | ₹333.08 | ₹256.22 |
| April | ₹326.55 | ₹251.19 |
| May | ₹317.04 | ₹243.88 |
| June | ₹331.31 | ₹254.85 |
| July | ₹324.81 | ₹249.86 |
| August | ₹334.86 | ₹257.58 |
| September | ₹346.58 | ₹266.60 |
| October | ₹355.59 | ₹273.53 |
| November | ₹364.48 | ₹280.37 |
| December | ₹373.59 | ₹287.38 |
| Month | Maximum Price (₹) | Minimum Price (₹) |
|---|---|---|
| January | ₹381.06 | ₹293.13 |
| February | ₹390.83 | ₹300.64 |
| March | ₹406.08 | ₹312.37 |
| April | ₹398.11 | ₹306.24 |
| May | ₹386.52 | ₹297.32 |
| June | ₹403.91 | ₹310.70 |
| July | ₹395.99 | ₹304.61 |
| August | ₹408.24 | ₹314.03 |
| September | ₹422.53 | ₹325.02 |
| October | ₹433.51 | ₹333.47 |
| November | ₹444.35 | ₹341.81 |
| December | ₹455.46 | ₹350.35 |
| Month | Maximum Price (₹) | Minimum Price (₹) |
|---|---|---|
| January | ₹464.57 | ₹357.36 |
| February | ₹476.48 | ₹366.52 |
| March | ₹495.06 | ₹380.82 |
| April | ₹485.36 | ₹373.35 |
| May | ₹471.22 | ₹362.48 |
| June | ₹492.42 | ₹378.79 |
| July | ₹482.77 | ₹371.36 |
| August | ₹497.70 | ₹382.85 |
| September | ₹515.12 | ₹396.25 |
| October | ₹528.51 | ₹406.55 |
| November | ₹541.73 | ₹416.71 |
| December | ₹555.27 | ₹427.13 |
| Month | Maximum Price (₹) | Minimum Price (₹) |
|---|---|---|
| January | ₹566.37 | ₹435.67 |
| February | ₹580.90 | ₹446.84 |
| March | ₹603.55 | ₹464.27 |
| April | ₹591.72 | ₹455.17 |
| May | ₹574.48 | ₹441.91 |
| June | ₹600.33 | ₹461.80 |
| July | ₹588.56 | ₹452.74 |
| August | ₹606.77 | ₹466.74 |
| September | ₹628.00 | ₹483.08 |
| October | ₹644.33 | ₹495.64 |
| November | ₹660.44 | ₹508.03 |
| December | ₹676.95 | ₹520.73 |
In 2030, the price dynamics for Indian Oil Corporation (IOC) are set to undergo monthly fluctuations. At the outset in January, prices are estimated to range between ₹566.37 and ₹435.67, marking the start of this variable trend. As the year progresses, each month is expected to bring distinct price movements, culminating in December with potential highs of ₹676.95 for the maximum and ₹520.73 for the minimum.
Financial Condition of Indian Oil Corporation (IOC): Last 5 years
| 2019 | 2020 | 2021 | 2022 | 2023 | |
|---|---|---|---|---|---|
| Sales (Crore Rs) |
528,158 | 483,763 | 363,950 | 589,336 | 841,756 |
| Expenses (Crore Rs) |
492,896 | 467,710 | 324,021 | 542,717 | 811,057 |
| Operating Profit (Crore Rs) |
35,262 | 16,053 | 39,929 | 46,619 | 30,699 |
| OPM % | 7% | 3% | 11% | 8% | 4% |
| Other Income (Crore Rs) |
4,097 | -7,165 | 4,696 | 4,318 | 5,061 |
| Interest (Crore Rs) |
4,925 | 5,792 | 2,933 | 4,301 | 7,541 |
| Depreciation (Crore Rs) |
8,506 | 10,273 | 10,941 | 12,348 | 13,181 |
| Profit before tax (Crore Rs) |
25,927 | -7,177 | 30,751 | 34,289 | 15,038 |
| Tax % | 33% | 74% | 29% | 25% | 22% |
| Net Profit (Crore Rs) |
17,274 | -1,876 | 21,762 | 25,727 | 11,704 |
| EPS in Rs | 12.31 | -0.63 | 15.32 | 17.78 | 6.93 |
| Dividend Payout % | 49% | -437% | 51% | 46% | 43% |
Indian Oil Corporation has experienced fluctuating growth over the last five years.
While the company’s revenue has shown significant improvement from INR 528,158 crore in 2019 to INR 841,756 crore in 2023, the profit growth has been inconsistent. The maximum and minimum net profits in the last five years were INR 21,762 crore and INR -1,876 crore, respectively. The company has been able to maintain an operating profit margin of around 3-11% over the years, and its EPS has increased from 12.31 in 2019 to 6.93 in 2023. The dividend payout ratio has varied from 43% to -437% during the period under review. The price-to-earnings ratio has fluctuated, and the share price has ranged from INR 483,763 in 2020 to INR 841,756 in 2023. Overall, the company’s performance shows both positive and negative aspects in terms of profit and loss, percentage growth, and financial ratios.
FAQS
As of March 4th, 2024, the current target price for the shares of Indian Oil Corporation is set at ₹175.
As per our prediction, Indian Oil Corporation could reach a maximum of ₹204.17 by the end of December 2024
IOC share price target for 2025 shows IOC could be trading ₹248.92 and ₹160.20. 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.
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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 March 4, 2024.
Even if I invest, I would only invest a small amount, that too in dips.
Although there was a decline in profit after tax (PAT) in 2020, the company recovered and experienced substantial PAT growth in 2022. Based on our prediction, IOC’s share price target for the years 2024 to 2030 indicates a promising future, with a maximum price target of ₹676.95 in 2030.
The company’s dividend payout ratio ranges from 43% to 51%. Considering the company’s potential for growth and dividend yield, Indian Oil Corporation’s shares appear to be a favourable long-term investment.
What did we learn?
- 1 About Indian Oil Corporation
- 2 What kind of business is IOC in?
- 3 Indian Oil Corp. (IOCL) Q3 FY23-24 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 FAQS
- 7.1 What is the current share price of Indian Oil Corporation?
- 7.2 What is the share price target of IOC by 2024?
- 7.3 Can IOC’s share price reach 500 INR by 2025?
- 7.4 What is the growth potential of Indian Oil Corporation?
- 7.5 What are the financials of Indian Oil Corporation in the last five years?
- 7.6 What are the factors affecting IOC’s share price?
- 7.7 What is the dividend history of Indian Oil Corporation?
- 7.8 What are the recommendations of experts for investing in Indian Oil Corporation shares?
- 8 Conclusion: Is it a good time to invest in Indian Oil Corporation shares?
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