Strong Price Performance and Market Context
Indian Oil Corporation Ltd’s stock price touched Rs.181, marking its highest level in the past year. This represents a significant appreciation from its 52-week low of Rs.110.75, translating into a one-year return of 39.05%, substantially outperforming the Sensex’s 6.60% gain over the same period. Despite a slight dip of 0.31% on the day, the stock remains well above its key moving averages, trading higher than its 5-day, 20-day, 50-day, 100-day, and 200-day moving averages, signalling sustained upward momentum.
The broader market context shows the Sensex trading at 83,212.55, down 0.12% after a flat opening, and still 3.54% below its own 52-week high of 86,159.02. While the Sensex is currently below its 50-day moving average, the 50DMA remains above the 200DMA, indicating a cautiously positive medium-term trend. Against this backdrop, IOC’s performance stands out as a market leader within the oil sector.
Financial Strength Underpinning the Rally
IOC’s recent price surge is underpinned by strong financial results and operational metrics. The company reported net sales of Rs.205,157.37 crore in the latest quarter, the highest recorded to date. Operating profit (PBDIT) also reached a record Rs.22,745.39 crore, reflecting a robust operating margin. Net profit growth has been particularly impressive, rising by 74.28% in the most recent quarter, contributing to a three-quarter streak of positive results.
Operating profit to interest ratio stands at a healthy 10.89 times, indicating strong coverage of financial costs. Return on capital employed (ROCE) is reported at 10.6%, highlighting efficient utilisation of capital. The company’s enterprise value to capital employed ratio of 1.2 suggests an attractive valuation relative to its capital base, further supporting investor confidence.
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Dividend Yield and Institutional Backing
At the current price level, Indian Oil Corporation Ltd offers a high dividend yield of approximately 4.55%, providing an attractive income component for shareholders. This yield is notable within the oil sector, where dividend returns are a key consideration for many investors.
Institutional investors hold a significant 38.17% stake in the company, reflecting strong confidence from entities with extensive analytical resources. Such backing often correlates with a thorough assessment of the company’s fundamentals and long-term prospects.
Valuation and Market Position
IOC’s valuation metrics indicate a discount relative to its peers’ historical averages, despite its strong growth trajectory. The company’s PEG ratio stands at zero, reflecting rapid profit growth outpacing price appreciation. Over the past year, profits have surged by 300.1%, a remarkable increase that has supported the stock’s upward movement.
The company’s mojo score has recently been upgraded to 87.0, with a mojo grade elevated from Buy to Strong Buy as of 2 February 2026. This upgrade reflects improved financial health and market positioning, reinforcing the stock’s appeal within the oil sector.
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Sectoral and Long-Term Performance
Within the oil sector, IOC’s performance has been exemplary. The stock has outperformed the BSE500 index over the last three years, one year, and three months, demonstrating consistent market-beating returns. This sustained outperformance is supported by the company’s healthy long-term growth, with net sales increasing at an annual rate of 16.33% and operating profit growing at 32.05% annually.
Despite the stock experiencing a slight pullback following four consecutive days of gains, its overall trend remains positive. The recent price action suggests consolidation near the new high, which may serve to strengthen the base for future price stability.
Summary of Key Metrics
To summarise, Indian Oil Corporation Ltd’s key financial and market metrics as of 6 February 2026 include:
- New 52-week high price: Rs.181
- One-year return: 39.05%
- Net sales (quarterly): Rs.205,157.37 crore (highest recorded)
- Operating profit (PBDIT quarterly): Rs.22,745.39 crore (highest recorded)
- Net profit growth (quarterly): 74.28%
- Dividend yield: 4.55%
- Operating profit to interest ratio: 10.89 times
- Return on capital employed (ROCE): 10.6%
- Enterprise value to capital employed: 1.2
- Institutional holdings: 38.17%
- Mojo score: 87.0 (Strong Buy, upgraded from Buy on 2 Feb 2026)
These figures collectively illustrate the company’s robust financial health and market standing, which have been instrumental in driving the stock to its new 52-week high.
Conclusion
Indian Oil Corporation Ltd’s achievement of a new 52-week high at Rs.181 is a testament to its strong financial performance, attractive valuation, and sustained market momentum. The stock’s outperformance relative to the broader market and its sector peers highlights its prominent position within the oil industry. Supported by solid fundamentals and institutional backing, IOC continues to demonstrate resilience and strength in a competitive market environment.
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