Indian Oil Corporation: A Promising Investment Opportunity

Indian Oil Corporation, one of the largest oil exploration and refining companies in India, has recently caught the attention of investors with its positive performance in the last three quarters. MarketsMOJO has upgraded its stock call to 'Buy' on 2023-11-02, making it a promising investment opportunity.
The company has shown significant growth in its Profit Before Tax (PBT) and Profit After Tax (PAT) in the last quarter, with a growth rate of 149.5% and 114.0% respectively. Its Return on Capital Employed (ROCE) is also at its highest at 21.27%, indicating a strong financial position.

Technically, the stock is in a bullish range and has generated a return of 24.88% since 02-Nov-23. Multiple factors such as MACD, Bollinger Band, KST, and OBV are also indicating a bullish trend for the stock.

Moreover, with a ROCE of 20.6, the stock is currently trading at a discount compared to its historical valuations. In the past year, while the stock has generated a return of 54.79%, its profits have risen by 235.3%, resulting in a low PEG ratio of 0. Additionally, the company offers a high dividend yield of 6.7%, making it an attractive investment option.

Indian Oil Corporation also has a high institutional holding of 38.16%, indicating that it is a preferred choice for investors with better resources and capabilities to analyze the company's fundamentals.

In the long term, the stock has outperformed BSE 500 and has shown a market-beating performance. However, there are some risks associated with the company, such as a high Debt to EBITDA ratio of 3.78 times, which may affect its ability to service debt. Additionally, its operating profit has shown a negative growth rate of -12.40% over the last 5 years, which may impact its long-term growth.

In conclusion, Indian Oil Corporation's positive performance, attractive valuation, and market-beating performance make it a 'Buy' according to MarketsMOJO. However, investors should also consider the risks associated with the company before making any investment decisions.