Indian Oil Corporation Ltd.
ISIN: INE242A01010 • Market Cap: ₹1.93 Lakh Cr
The 5-Pillar Quality Audit for Indian Oil Corporation Ltd.
Evaluated across Profitability, Financial Health, Historical Compounding, Valuation Safety, and Ownership Governance:
1. Profitability & Capital Efficiency
Weight: 25%Measures operating margins (7.1%), Return on Capital Employed (18.9%), and equity compounding (19.2%).
2. Financial Health & Solvency
Weight: 25%Debt-to-Equity is 0.55 with comfortable interest coverage and clean working capital.
3. Growth & Compounding Track Record
Weight: 20%Historical 3Y Sales CAGR (7.4%) and 3Y PAT CAGR (-7.3%).
4. Valuation Multiple & Margin of Safety
Weight: 15%Trades at P/E of 5.73 vs PEG of 0.65 and Dividend Yield of 5.1%.
5. Ownership Quality & Governance
Weight: 15%Promoter holding stands at 51.5%, backed by 38.2% institutional ownership.
Key Fundamental Strengths
Robust Equity Compounding (ROE: 19.2%)
Shareholder equity compounds at a healthy 19.2%, exceeding average Indian equity benchmarks.
Attractive Valuation Margin (P/E: 5.73)
Trading at a P/E multiple of 5.73, the stock offers a favourable risk-reward entry for quality compounding.
Deep Institutional Sponsorship (38.2%)
Mutual funds, domestic DIIs, and foreign FIIs hold 38.2%, providing strong governance scrutiny.
Areas to Watch & Potential Risks
Sectoral & Macro Headwinds (Oil Gas & Consumable Fuels)
Subject to broader cyclical demand, raw material price shifts, and regulatory frameworks governing the Oil Gas & Consumable Fuels space.
Quantitative Strategy Eligibility
Checking IOC against established Indian wealth creation frameworks:
Coffee Can Investing Framework
Passes Saurabh Mukherjea's Coffee Can rule: 10%+ sustained revenue growth and 15%+ ROCE/ROE.
Quality Factor Screener (High RoIC + Low Debt)
Scorecard of 69/100 or leverage profile sits below strict quality index hurdles.
GARP / Value-Growth Blend
Provides balanced valuation margin with strong profitability scores.
Oil Gas & Consumable Fuels Sector Peer Comparison
Compare IOC directly against top industry peers by market capitalization:
| Company | 5-Pillar Score | Market Cap | P/E | ROCE | D/E | Scorecard |
|---|---|---|---|---|---|---|
| Indian Oil Corporation Ltd. (IOC)Current | 69/100 | ₹1.93 Lakh Cr | 5.73 | 18.9% | 0.55 | — |
| Reliance Industries Ltd. (RELIANCE) | 68/100 | ₹17.69 Lakh Cr | 23.68 | 9.2% | 0.41 | View |
| Oil & Natural Gas Corporation Ltd. (ONGC) | 67/100 | ₹2.99 Lakh Cr | 6.88 | 12.7% | 0.38 | View |
| Coal India Ltd. (COALINDIA) | 73/100 | ₹2.47 Lakh Cr | 7.90 | 19.6% | 0.12 | View |
| Bharat Petroleum Corporation Ltd. (BPCL) | 72/100 | ₹1.34 Lakh Cr | 7.83 | 25.6% | 0.45 | View |
| Hindustan Petroleum Corporation Ltd. (HINDPETRO) | 63/100 | ₹77,676 Cr | 46.48 | 22.2% | 0.78 | View |
Frequently Asked Questions: Indian Oil Corporation Ltd.
Q:What is the 5-Pillar Fundamental Score for Indian Oil Corporation Ltd. (IOC)?
Indian Oil Corporation Ltd. has a RupeeTools Fundamental Score of 69/100, placing it in the 'Solid & Healthy' category. Its pillar scores are: Profitability (69/100), Financial Health (72/100), Growth (35/100), Valuation (95/100), and Ownership Quality (85/100).
Q:Is IOC fundamentally strong for long-term investment?
IOC currently holds a moderate quality rating of 69/100. While it operates in the Oil Gas & Consumable Fuels sector, investors should monitor its profit margins before initiating long-term positions.
Q:Does IOC pass the Coffee Can Investing filter?
Yes! IOC satisfies both core pillars of Coffee Can Investing: achieving consistently high capital returns (ROCE/ROE >= 15%) alongside double-digit multi-year revenue growth.
Q:How does IOC compare against other Oil Gas & Consumable Fuels peers?
Within India's Oil Gas & Consumable Fuels sector, IOC trades at a P/E of 5.73 and generates an ROCE of 18.9%. Compare its 5-Pillar score of 69/100 against top sector peers like Reliance Industries Ltd. (68/100), Oil & Natural Gas Corporation Ltd. (67/100).
Regulatory & SEBI Research Analyst Compliance Disclaimer:
This 5-pillar fundamental score is an automated quantitative health check generated purely from historical public financial statements, corporate filings, and exchange disclosures for educational and informational purposes only. It does NOT constitute investment advice, a stock recommendation, or a solicitation to buy or sell securities. RupeeTools is not a SEBI-registered Research Analyst. Please consult a SEBI-registered financial advisor before making investment decisions.