Current Rating and Its Significance
Indian Oil Corporation Ltd’s current 'Strong Buy' rating by MarketsMOJO indicates a highly favourable investment opportunity based on a comprehensive evaluation of multiple factors. This rating reflects confidence in the company’s quality, valuation, financial trends, and technical outlook. For investors, a 'Strong Buy' suggests that the stock is expected to outperform the market and offers attractive potential returns relative to its risks.
Quality Assessment
As of 14 February 2026, Indian Oil Corporation Ltd maintains a good quality grade. The company has demonstrated robust operational performance, highlighted by consistent growth in net sales and profitability. Over the long term, net sales have grown at an annualised rate of 16.33%, while operating profit has expanded even more impressively at 32.05% per annum. This strong growth trajectory underscores the company’s ability to generate sustainable earnings and maintain operational efficiency.
Moreover, the company has declared very positive results for the last three consecutive quarters, with the latest quarter showing record figures: net sales reached ₹2,05,157.37 crores, and PBDIT stood at ₹22,745.39 crores. The operating profit to interest ratio is also notably high at 10.89 times, indicating strong coverage of interest expenses and financial stability.
Valuation Perspective
Indian Oil Corporation Ltd’s valuation is currently rated as very attractive. The company’s return on capital employed (ROCE) stands at 10.6%, which is a solid indicator of efficient capital utilisation. Additionally, the enterprise value to capital employed ratio is a modest 1.2, suggesting the stock is trading at a discount compared to its peers’ historical valuations.
Investors will find the valuation compelling given the company’s strong fundamentals and growth prospects. The stock’s price-to-earnings growth (PEG) ratio is effectively zero, reflecting the company’s exceptional profit growth of 300.1% over the past year. Furthermore, the stock offers a high dividend yield of 4.5%, providing an attractive income stream alongside capital appreciation potential.
Financial Trend Analysis
The financial trend for Indian Oil Corporation Ltd is rated as very positive. The company’s net profit has surged by 74.28%, reinforcing its strong earnings momentum. This growth is supported by healthy operational metrics and efficient cost management. The company’s ability to sustain positive quarterly results over multiple periods demonstrates resilience and effective execution of its business strategy.
From a returns perspective, the stock has delivered impressive performance as of 14 February 2026. It has generated a 47.11% return over the past year, with shorter-term returns also showing strength: a 12.36% gain over the past month and a 24.12% increase over six months. These figures highlight the stock’s consistent upward trajectory and investor confidence.
Technical Outlook
Technically, Indian Oil Corporation Ltd is rated as bullish. The stock’s price action and momentum indicators support a positive near-term outlook. Despite a minor 0.81% decline on the day of reporting, the overall trend remains upward, with weekly and monthly gains reinforcing the bullish sentiment. Institutional holdings are high at 38.17%, reflecting strong backing from sophisticated investors who typically have greater resources to analyse company fundamentals and market conditions.
Market Position and Ranking
Indian Oil Corporation Ltd is a large-cap company within the oil sector and is among the top-rated stocks by MarketsMOJO. It ranks second among all large-cap stocks and fifth across the entire market universe of over 4,000 stocks. This elite positioning underscores the company’s robust fundamentals and market leadership.
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- - Strong fundamental track record
- - Consistent growth trajectory
- - Reliable price strength
Implications for Investors
For investors, the 'Strong Buy' rating on Indian Oil Corporation Ltd signals a compelling opportunity to consider adding or increasing exposure to this stock. The combination of strong quality metrics, attractive valuation, positive financial trends, and bullish technical indicators suggests that the stock is well-positioned to deliver favourable returns in the medium to long term.
Investors should note that while the rating was last updated on 02 February 2026, all financial data and returns discussed are current as of 14 February 2026, ensuring that the analysis reflects the latest market conditions and company performance.
Given the company’s leadership in the oil sector, robust earnings growth, and attractive dividend yield, Indian Oil Corporation Ltd remains a key stock to watch for those seeking growth combined with income potential in their portfolios.
Summary
Indian Oil Corporation Ltd’s 'Strong Buy' rating by MarketsMOJO is supported by a solid foundation of quality operations, very attractive valuation metrics, a very positive financial trend, and a bullish technical outlook. The stock’s strong returns over the past year and high institutional ownership further reinforce its appeal. Investors looking for a large-cap oil sector stock with a proven track record and promising outlook may find this recommendation particularly relevant.
About MarketsMOJO Ratings
MarketsMOJO’s ratings are derived from a comprehensive analysis of company fundamentals, valuation, financial trends, and technical factors. The 'Strong Buy' grade is reserved for stocks that demonstrate superior potential relative to their peers, backed by robust data and market insights. Indian Oil Corporation Ltd’s position among the top-rated stocks reflects its exceptional standing in the current market environment.
Stock Performance Snapshot as of 14 February 2026
Daily change: -0.81% | Weekly gain: +0.94% | Monthly gain: +12.36% | Quarterly gain: +2.52% | Six-month gain: +24.12% | Year-to-date gain: +6.19% | One-year gain: +47.11%
Key Financial Highlights
Net Sales (Quarterly): ₹2,05,157.37 crores (highest recorded)
PBDIT (Quarterly): ₹22,745.39 crores (highest recorded)
Operating Profit to Interest Ratio (Quarterly): 10.89 times
Return on Capital Employed (ROCE): 10.6%
Dividend Yield: 4.5%
Institutional Holdings: 38.17%
Ranking and Market Position
Ranked 2nd among large-cap stocks and 5th across all stocks rated by MarketsMOJO, Indian Oil Corporation Ltd is firmly positioned as a market leader with strong investor confidence.
Conclusion
Indian Oil Corporation Ltd’s current 'Strong Buy' rating reflects a well-rounded investment case supported by strong fundamentals, attractive valuation, positive financial momentum, and favourable technical signals. Investors seeking exposure to the oil sector with a large-cap, fundamentally sound company should consider this stock as a core portfolio holding.
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