Buy Indian Oil, target price Rs 145: Motilal Oswal Financial Services

Motilal Oswal Financial Services has a buy call on Indian Oil Corporation with a target price of Rs 145. The current market price of Indian Oil Corporation is Rs 128.5. Indian Oil, incorporated in 1959, is a Large Cap company with a market cap of Rs 182502.88 crore, operating in Gas & Petroleum sector.

Indian Oil's key products/revenue segments include Petroleum Refinery Products, Other Operating Revenue, Scrap, Sale of services and Subsidy for the year ending 31-Mar-2024.



Financials
For the quarter ended 31-12-2024, the company has reported a Consolidated Total Income of Rs 195036.06 crore, up 11.01% from last quarter Total Income of Rs 175699.37 crore and down -3.05% from last year same quarter Total Income of Rs 201173.88 crore. The company has reported net profit after tax of Rs 1912.86 crore in the latest quarter.


The company's top management includes Mr.Shrikant Madhav Vaidya, Mr.Krishnan Sadagopan, Mr.Sudipta Kumar Ray, Mr.Prasenjit Biswas, Dr.Dattatreya Rao Sirpurker, Prof. (Dr)Ashutosh Pant, Mr.Dilip Gogoi Lalung, Dr.Sujata Sharma, Mr.Arvind Kumar, Ms.Rashmi Govil, Mr.Alok Sharma, Mr.Anuj Jain, Mr.N Senthil Kumar, Mr.Sujoy Choudhury, Mr.Satish Kumar Vaduguri, Prof. (Dr)Ram Naresh Singh. Company has SRB & Associates as its auditors. As on 31-12-2024, the company has a total of 1,412 crore shares outstanding.

Investment Rationale
Indian Oil Corporation is set to commission multiple projects over the next two years, driving further growth. The refinery projects currently underway, expected to be completed in 2HFY26-FY27, include the Panipat refinery (25mmtpa), Gujarat refinery, and Barauni refinery (9mmtpa). The stock trades at 11.9x consolidated FY26E EPS of Rs 10.4 and 0.9x FY26E P/B. The brokerage reiterates our BUY rating on the stock with a target price of Rs 145, valuing at 1xDec?26E P/B.

Promoter/FII Holdings
Promoters held 51.5 per cent stake in the company as of 31-Dec-2024, while FIIs owned 7.43 per cent, DIIs 10.08 per cent.