Strong Rally and Market Outperformance
The stock has demonstrated impressive momentum, gaining 4.54% over the past three consecutive trading sessions. Today’s advance of 1.39% notably outperformed the oil sector by 0.72%, underscoring IOC’s leadership within its industry segment. The stock’s price now stands well above its key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages, signalling a sustained bullish trend.
Over the last year, Indian Oil Corporation Ltd has delivered a remarkable return of 54.07%, significantly outpacing the Sensex’s 11.14% gain over the same period. This outperformance highlights the company’s resilience and growth trajectory in a competitive market.
Financial Strength Underpinning the Rally
IOC’s recent financial disclosures have reinforced investor confidence. The company reported net sales of Rs.205,157.37 crore in the latest quarter, the highest recorded to date. Operating profit surged to Rs.22,745.39 crore, reflecting a robust operating margin and efficient cost management. Net profit growth was particularly notable at 74.28%, contributing to a very positive earnings outlook.
Operating profit to interest ratio reached an impressive 10.89 times, indicating strong coverage of financial obligations. Return on capital employed (ROCE) stands at 10.6%, reflecting effective utilisation of capital resources. The company’s enterprise value to capital employed ratio of 1.2 further suggests an attractive valuation relative to its operational scale.
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Dividend Yield and Institutional Backing
At the current price level, Indian Oil Corporation Ltd offers a high dividend yield of 4.44%, providing an attractive income component for shareholders. Institutional investors hold a substantial 38.17% stake in the company, reflecting strong backing from entities with significant analytical resources and long-term investment horizons.
The company’s Mojo Score stands at 87.0, with a recent upgrade from a Buy to a Strong Buy rating on 2 February 2026. This upgrade reflects improved fundamentals and market positioning, further validating the stock’s upward trajectory.
Market Context and Sector Performance
The broader market environment has been supportive, with the Sensex rising 381.37 points to close at 82,911.49, a 0.83% gain today. Although the Sensex remains 3.92% below its own 52-week high of 86,159.02, mega-cap stocks like IOC have been leading the charge. The Sensex’s 50-day moving average remains above its 200-day moving average, signalling a generally positive medium-term trend despite the index trading slightly below its 50-day average.
Within this context, IOC’s outperformance of both the sector and the broader market highlights its strong operational and financial position.
Valuation and Quality Metrics
Indian Oil Corporation Ltd is trading at a discount compared to its peers’ average historical valuations, offering a compelling risk-reward profile. The company’s PEG ratio stands at zero, reflecting exceptional profit growth relative to its price appreciation. Over the past year, profits have surged by 300.1%, underscoring the quality of earnings growth behind the stock’s price gains.
Ranked third among large-cap stocks and sixth across the entire market by MarketsMojo, IOC is among the top 1% of companies rated across more than 4,000 stocks. This ranking reflects its strong fundamentals, consistent earnings growth, and attractive valuation metrics.
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Long-Term Performance and Market Leadership
Indian Oil Corporation Ltd has demonstrated market-beating performance not only in the past year but also over longer periods. The stock has outperformed the BSE500 index over the last three years, one year, and three months, reflecting sustained growth and resilience. This consistent outperformance is supported by the company’s strong net sales growth at an annual rate of 16.33% and operating profit growth of 32.05%.
Positive quarterly results have been declared for three consecutive quarters, reinforcing the company’s stable earnings momentum. These results, combined with a high operating profit to interest ratio and strong cash flow generation, have contributed to the stock’s steady ascent to its new 52-week high.
Summary of Key Metrics
To summarise, Indian Oil Corporation Ltd’s key performance indicators include:
- New 52-week high price: Rs.183.3
- One-year return: 54.07%
- Net sales (quarterly): Rs.205,157.37 crore
- Operating profit (quarterly): Rs.22,745.39 crore
- Net profit growth: 74.28%
- Dividend yield: 4.44%
- Mojo Score: 87.0 (Strong Buy rating)
- Institutional holdings: 38.17%
- ROCE: 10.6%
- Operating profit to interest ratio: 10.89 times
These figures collectively illustrate the company’s robust financial health and market standing, which have driven the stock’s recent rally and new high.
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