Strong Momentum Drives Stock to New Heights
The stock of Indian Oil Corporation Ltd demonstrated robust momentum, touching an intraday high of Rs.178, which represents a 3.04% increase on the day. This new peak surpasses the previous 52-week high, underscoring the stock’s upward trajectory over recent sessions. The stock has recorded gains for four consecutive days, delivering a cumulative return of 9.79% during this period. This sustained rally has outperformed the broader oil sector by 1.41% today, highlighting the stock’s relative strength within its industry.
IOC’s current trading price is comfortably above all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages, signalling a strong technical position. This alignment of moving averages often reflects positive investor sentiment and underlying strength in the stock’s price action.
Market Context and Comparative Performance
While the broader Sensex index experienced a decline of 0.51% today, closing at 83,389.74 points, Indian Oil Corporation Ltd’s stock bucked the trend with its notable gains. The Sensex remains 3.32% below its own 52-week high of 86,159.02, and is currently trading below its 50-day moving average, although the 50-day average remains above the 200-day average, indicating a mixed technical outlook for the benchmark index.
In contrast, IOC’s one-year performance stands out with a remarkable 38.42% return, significantly outperforming the Sensex’s 6.60% gain over the same period. The stock’s 52-week low was Rs.110.75, illustrating a substantial recovery and appreciation in value over the past year.
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Financial Strength Underpinning the Rally
Indian Oil Corporation Ltd’s recent price surge is supported by strong financial fundamentals. The company has demonstrated healthy long-term growth, with net sales increasing at an annual rate of 14.63% and operating profit expanding by 28.19%. These figures reflect a solid operational performance that has contributed to investor confidence.
In the September 2025 quarter, the company reported a profit after tax (PAT) of Rs.7,817.55 crores, representing a substantial growth of 105.8% compared to the previous four-quarter average. Operating profit before depreciation, interest, and taxes (PBDIT) reached a record Rs.16,245.00 crores, while the operating profit to interest ratio hit a high of 7.16 times, indicating strong coverage of interest expenses by operating earnings.
Return on capital employed (ROCE) stands at 10.6%, reflecting efficient utilisation of capital. The company’s enterprise value to capital employed ratio is 1.1, suggesting an attractive valuation relative to its capital base. Furthermore, the stock is trading at a discount compared to its peers’ average historical valuations, enhancing its appeal from a value perspective.
Dividend Yield and Institutional Backing
At the current price level, Indian Oil Corporation Ltd offers a high dividend yield of 4.63%, providing a steady income stream to shareholders. This yield is notable within the oil sector and adds to the stock’s overall attractiveness.
Institutional investors hold a significant 38.17% stake in the company, reflecting confidence from entities with substantial analytical resources and expertise. Such holdings often indicate a strong belief in the company’s fundamentals and prospects.
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Consistent Outperformance Over Multiple Timeframes
Indian Oil Corporation Ltd has delivered market-beating returns not only over the past year but also across longer time horizons. The stock has outperformed the BSE500 index over the last three years, one year, and three months, underscoring its consistent ability to generate superior returns relative to the broader market.
Profit growth has also been impressive, with a 48.6% increase over the past year, outpacing the stock’s price appreciation and resulting in a low PEG ratio of 0.2. This metric suggests that the stock’s price growth is well supported by earnings expansion, indicating a favourable valuation dynamic.
The recent upgrade in the company’s Mojo Grade from Buy to Strong Buy on 2 February 2026, accompanied by a Mojo Score of 81.0, further reflects the positive reassessment of the stock’s quality and growth prospects by MarketsMOJO’s analytical framework.
Summary of Key Metrics
To summarise, Indian Oil Corporation Ltd’s stock has reached a new 52-week high of Rs.178, supported by a four-day gain streak and outperformance relative to its sector. The company’s robust financial results, attractive valuation, high dividend yield, and strong institutional backing have all contributed to this milestone. Despite a broader market decline, IOC’s stock continues to demonstrate resilience and strength, making it a standout performer in the oil sector.
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