Strong Momentum Drives Stock to New Heights
The stock of Indian Oil Corporation Ltd has demonstrated remarkable strength, gaining consistently over the past five trading sessions. During this period, IOC’s share price has appreciated by 7.87%, outperforming its sector by 1.29% on the day it hit the new high. This rally has propelled the stock 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.
Today’s peak price of Rs.188.4 represents a substantial advance from its 52-week low of Rs.110.75, underscoring a year-long upward trajectory that has delivered a total return of 60.84%. This performance significantly outpaces the Sensex, which has recorded a comparatively modest 9.63% gain over the same period.
Financial Strength Underpinning the Rally
Indian Oil Corporation Ltd’s recent price surge is supported by a series of strong financial results and operational metrics. The company reported a net profit growth of 74.28% in its December 2025 quarter, marking the third consecutive quarter of positive results. Net sales for the quarter reached an all-time high of Rs.205,157.37 crores, while PBDIT (Profit Before Depreciation, Interest and Taxes) also hit a record Rs.22,745.39 crores.
Operating profit margins remain robust, with the operating profit to interest ratio at a peak of 10.89 times, reflecting efficient cost management and strong earnings quality. The company’s return on capital employed (ROCE) stands at a healthy 10.6%, indicating effective utilisation of capital resources.
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Valuation and Dividend Appeal
Despite the strong price appreciation, Indian Oil Corporation Ltd maintains an attractive valuation profile. The company’s enterprise value to capital employed ratio is a modest 1.2, indicating a favourable price relative to the capital base. This valuation is notably discounted compared to its peers’ historical averages, enhancing its appeal within the oil sector.
Additionally, the stock offers a high dividend yield of 4.29% at the current price level, providing a steady income stream alongside capital gains. This dividend yield is among the highest in the sector, reflecting the company’s commitment to returning value to shareholders.
Institutional Confidence and Market Standing
Institutional investors hold a significant 38.17% stake in Indian Oil Corporation Ltd, signalling strong confidence from entities with extensive analytical resources. This level of institutional ownership often correlates with greater market stability and informed trading activity.
Indian Oil Corporation Ltd is also recognised for its quality and performance by MarketsMojo, earning a Mojo Score of 87.0 and a Mojo Grade upgrade to Strong Buy as of 2 February 2026, up from a previous Buy rating. The company ranks third among large-cap stocks and seventh across the entire market universe of over 4,000 stocks, placing it in the top 1% of rated companies.
Market Context and Comparative Performance
The broader market environment has been less favourable, with the Sensex declining by 0.55% to 81,799.55 points after a flat opening. The index is currently trading below its 50-day moving average, although the 50-day average remains above the 200-day average, suggesting mixed medium-term signals. Against this backdrop, Indian Oil Corporation Ltd’s outperformance is particularly noteworthy.
Over the past three years, the stock has consistently outperformed the BSE500 index, reinforcing its status as a market-beating large-cap stock. Its profit growth over the last year has been exceptional, rising by 300.1%, while the PEG ratio remains at zero, indicating strong earnings growth relative to price.
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Summary of Key Metrics
Indian Oil Corporation Ltd’s recent performance is underpinned by several key financial and market metrics:
- New 52-week high price: Rs.188.4
- 52-week low price: Rs.110.75
- One-year return: 60.84%
- Net sales growth (annual rate): 16.33%
- Operating profit growth: 32.05%
- Net profit growth (latest quarter): 74.28%
- Operating profit to interest ratio: 10.89 times
- Return on capital employed (ROCE): 10.6%
- Dividend yield: 4.29%
- Institutional holdings: 38.17%
- Mojo Score: 87.0 (Strong Buy)
These figures collectively illustrate the company’s strong operational performance, financial health, and market positioning, which have contributed to the recent stock price milestone.
Conclusion
Indian Oil Corporation Ltd’s attainment of a new 52-week high at Rs.188.4 is a testament to its sustained growth and resilience in the oil sector. The stock’s consistent gains over recent sessions, backed by robust financial results and attractive valuation metrics, have enabled it to outperform both its sector and the broader market. Institutional confidence and strong dividend yield further enhance the stock’s appeal within the large-cap universe. This milestone highlights Indian Oil Corporation Ltd’s position as a leading player in the industry with solid fundamentals supporting its market performance.
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