Strong Price Momentum and Market Outperformance
The stock has demonstrated consistent upward movement, gaining for three consecutive trading sessions and delivering a cumulative return of 3.54% during this period. On the day it hit the new high, IOC outperformed its sector by 1.08%, signalling robust investor confidence in the company’s current trajectory. The share price is trading comfortably above all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages, indicating sustained bullish momentum.
Robust Financial Performance Driving the Rally
Indian Oil Corporation Ltd’s recent rally 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, alongside a PBDIT of Rs.22,745.39 crore. Operating profit margins remain healthy at 32.05%, while net profit surged by an impressive 74.28% in the same period. These figures reflect a solid growth trajectory and efficient cost management.
The company’s operating profit to interest ratio stands at a robust 10.89 times, highlighting its strong ability to service debt and maintain financial stability. Return on capital employed (ROCE) is at 10.6%, which, combined with an enterprise value to capital employed ratio of 1.2, points to an attractive valuation relative to peers.
Dividend Yield and Institutional Confidence
At the current price level, IOC offers a high dividend yield of 4.49%, making it an appealing option for income-focused investors. Institutional holdings remain substantial at 38.17%, reflecting confidence from well-resourced investors who typically conduct thorough fundamental analysis before committing capital.
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Comparative Market Context and Sector Performance
The broader market environment has also been supportive. The Nifty index closed at 25,953.85, up 0.07% on the day, and is currently trading just 1.62% below its own 52-week high of 26,373.20. The index has gained 3.61% over the past three weeks, with large-cap stocks leading the charge. IOC’s outperformance relative to its sector and the broader market highlights its strength within the oil industry.
Over the past year, IOC’s stock has delivered a remarkable 50.46% return, significantly outpacing the Sensex’s 10.41% gain. This outperformance is further emphasised by the company’s profit growth, which has increased by over 300% in the same period, underscoring the quality of earnings expansion behind the share price appreciation.
Quality Ratings and MarketMojo Assessment
Indian Oil Corporation Ltd holds a strong Mojo Score of 87.0, earning a “Strong Buy” grade as of 2 Feb 2026, upgraded from a previous “Buy” rating. The company ranks among the top 1% of all 4,000 stocks rated by MarketsMojo, positioned third among large-cap stocks and sixth across the entire market. This reflects a comprehensive assessment of its fundamentals, valuation, and growth prospects.
The stock’s market capitalisation grade is rated at 1, indicating its status as a large-cap heavyweight with significant market presence and liquidity. The company’s consistent positive quarterly results over the last three quarters further reinforce its strong operational and financial footing.
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Long-Term Growth and Valuation Metrics
Indian Oil Corporation Ltd has demonstrated healthy long-term growth, with net sales increasing at an annualised rate of 16.33%. Operating profit growth has been even more pronounced at 32.05% annually, reflecting operational efficiency and effective cost control. The company’s PEG ratio stands at zero, indicating that its earnings growth is not fully priced into the current share price, which is trading at a discount compared to historical valuations of its peers.
Over the last three years, IOC has consistently outperformed the BSE500 index, delivering superior returns and profit growth. This sustained performance highlights the company’s resilience and ability to generate shareholder value over multiple market cycles.
Summary of Key Financial Highlights
• New 52-week high price: Rs.181.65
• 52-week low price: Rs.110.75
• One-year stock return: 50.46%
• Sensex one-year return: 10.41%
• Net sales (latest quarter): Rs.205,157.37 crore
• PBDIT (latest quarter): Rs.22,745.39 crore
• Net profit growth (latest quarter): 74.28%
• Operating profit margin: 32.05%
• Operating profit to interest ratio: 10.89 times
• ROCE: 10.6%
• Dividend yield: 4.49%
• Institutional holdings: 38.17%
• Mojo Score: 87.0 (Strong Buy)
Indian Oil Corporation Ltd’s recent price milestone is a reflection of its strong fundamentals, robust earnings growth, and favourable market conditions. The stock’s performance over the past year and its position relative to key technical indicators underscore its status as a leading player in the oil sector.
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