Indian Oil Corporation Stock Price

History of IOC:

Indian Oil Corporation (IOC) began in 1959. In 1964, Indian Refineries was merged with Indian Oil. In 2005, Indian Oil had signed an exploration and sharing agreement with the National Oil Corporation of Libya. It was recognized as the top oil marketing enterprise among the domestic oil marketing companies.

In 2006, Chennai-Trichy-Madurai product pipeline was dedicated to the country, and Kandla-Bhatinda product pipeline was converted to crude oil service. The capacity of Panipat Refinery had been doubled in 2007. IOC introduced the concept of "LNG at the Doorstep." In 2008, SERVO lubricants were introduced in Oman by Indian Oil.

Company profile of Indian Oil Corporation:

Indian Oil Corporation Limited is a BSE and NSE listed oil marketing company. It was ranked first in Fortune India 500 list in 2016 and ranked 168th in Fortune's Global 500 in 2017. As of March 2017, the total number of employees was 33,135. The oil company functions with seven major business branches, which include R&D Branch, Pipelines Branch, Refineries Branch, Petrochemicals Branch, Explosive Branch, Refineries Branch and Production Branch. Indian Oil owns more than 50% market share of petroleum products. Out of 23 refineries in India, Indian Oil Corporation Limited holds 11.

Management of Indian Oil Corporation Ltd:

Sanjiv Singh-Chairman

He is currently serving as Chairman at India Oil Corporation with more than 30 years of experience. He is an alumnus from IIT Roorkee. Chennai Petroleum Corporation Limited, a subsidiary of Indian Oil, is also led by him. In 1981, Sanjiv Singh joined IOC as Chairman before which he was the director at IOC. He brought valuable changes in the organization through his extensive domain experience and knowledge.

AK Sharma-Director Finance

He has been currently working as Director of Finance at Indian Oil Corporation Limited. He had joined IOC in 1983 and gained more than 30 years of experience in the petroleum sector. He has handled various finance assignments in the refinery and marketing branches at this oil company.

Registered Office Address:

Indian Oil Bhavan, G-9, Ali Jung Marg, Bandra (East), Mumbai, Maharashtra 400051

Wealth and Recent Performance of IOC:

The sales turnover of Indian Oil Corporations was up by 18.28% at Rs.13,08,650 million in the Q3 ended 31 December 2017 in comparison to the previous quarter.

The oil marketing company generated an 18.88% rise in the overall revenue. Operating profits were also up by 83.67% at Rs.1,46,222 million during the third quarter of the FY 2017-2018.

The net profits of the oil company were up to Rs.78,832.20 million from Rs.36,962.90 million. It has increased to 113.27%.

The Earnings per Share of the company accelerated to Rs.16.63 in the third quarter ended on 31 December 2017 from Rs.7.80.

IOL recorded an inventory hike of Rs.6,301 crore on refined commodities and crude. IOCL declared a dividend of Rs.19 during the same quarter.

Indian Oil Corporation Limited Stock Trends 2017:

  1. The year began with a positive direction since the ball of quarterly results were in the court of share investors. The company had reported a 29% hike in the net earnings which is a reliable indicator of an increase in stock prices of IOC to Rs.377.80 by the end of the first month.
  2. The demand for IOC stocks had been consistent. Therefore, the closing price increased to Rs.385.05 in February. The growth rate was 0.52% in March. Between January and March, the equities of the oil company were retailed at the highest price of Rs.404. The lowest rate had been Rs.391.
  3. In April, Indian Oil had joined the league of Rs.2 lakh crore market capitalization. The enterprise had also announced a few other significant events. So, the growth rate in the stock prices of IOC was up 13.69% to Rs.440.05.
  4. The stock performance was not healthy in May, June, and July. The share prices of IOC were down by 2.41%, 10.30%, and 4.56% respectively. Due to strong fundamentals, the company had accomplished a hike of 23.68% by August.
  5. There were a few hints for stock investors to buy the equities of IOC, which has been listed on the National Stock Exchange (NSE) and the Bombay Stock Exchange (BSE). However, the share prices of IOC had slowly recouped to Rs.415.50 in October.
  6. Due to weak demand, the market value of IOC stocks was down 5.29% to Rs.393.50 in November. In the last month, it was further down 1.2% to Rs.388.55. Except for a change in the directorship, there were no noticeable hints for stock investors.

Should You Invest in IOC Stocks?

Whether or not to hold the stocks of any company largely depends upon qualitative and quantitative factors. The qualitative aspects could be the brand reputation, the history, and the quantitative aspects could be the financial aspects.

IOCL is a well-known brand for petroleum products. Since establishment, it is recognized for premier quality services and products. The stocks of IOCL are listed on both the BSE and NSE stock exchanges. Undoubtedly, the qualitative aspects of Indian Oil Corporation Limited have been confident from the perspective of equity investors.

The stock investment tips and strategies will be different for short-term stock investors and long-term stock investors. For investing in stocks for a shorter period, it is advised to follow the readings of the technical analysis. But if you are looking to spend for a longer duration, then looking over the past financial performance and net-worth of the company is the most significant factor. Over the last five fiscal years, the net worth and net profit margins of Indian Oil increased steadily. According to solvency ratios, the company is highly liquid.

According to analysts, holding oil stocks such as Indian Oil Corporations may not be a great idea, especially in the long-run. The reason behind is the government who can alter practices whenever required. The profit margin of oil marketing companies will decrease when the prices of crude oil increase significantly.

So the short-term investments in the stocks of Indian Oil may be a better idea.

Note: The contents of this post/blog do not constitute any professional advice on a specific financial matter.

Indexes and Exchages

Bombay Stock Exchange (BSE)

The Bombay Stock Exchange, popularly called BSE, is Asia's first and oldest stock exchange. Located at Dalal Street in Mumbai, the BSE was formally established in 1875 by an influential stockbroker and businessman called Premchand Roychand. In the initial days, the BSE had its meetings under several Banyan trees in Mumbai before finding a permanent place, which is very appropriately named Dalal Street or Broker Street. After functioning as a floor trading exchange for more than a century, BSE ascended the digital ladder in 1995 by implementing a new screen-based automated trading platform with a capacity of 8 million orders in a day. In 2012, the BSE went global by becoming a Partner Exchange of the United Nations Sustainable Stock Exchange. Subsequently, BSE established India's first international exchange, called INX, in 2016.

National Stock Exchange (NSE)

NSE was set up in 1992 by a group of leading Indian financial institutions, following the Indian Government's directives. It aimed to bring transparency to the Indian capital market. It was India's first demutualized electronic exchange which operated on a completely automated screen-based electronic trading system, offering an easy trading facility to all Indian investors. NSE began its operations in the Wholesale Debt Market segment in 1994. NSE was the first company in India to offer a digital platform that connected the investor base of the entire country. NSE offers services in various segments, such as trading, equity derivatives, clearing and settlement services in equity, debt and currency derivatives, etc.

NIFTY Index

The NIFTY is NSE's flagship index that tracks the behavior of a portfolio of blue-chip companies that have the largest and most liquid Indian securities. It is owned as well as managed by IISL (India Index Services and Products Ltd), which is India's first specialized company to focus on an index as a core product. Nifty indexes 50 of the 1600 companies on the National Stock Exchange (NSE) and is thus popularly referred to as 'Nifty 50'. It captures approximately 65% of its float-adjusted market capitalization and is a true reflection of the Indian stock market. The Nifty 50 includes the major sectors of the Indian economy. It offers the exposure to the Indian market in one efficient portfolio. The Nifty index has been trading since April 1996. It is ideally suited for index funds, benchmarking and index-based derivatives.

SENSEX Index

Sensex is BSE's stock market index. It consists of 30 well-established and financially flourishing companies listed on BSE. It was established in 1986. These 30 component companies are known for being the largest and most actively traded stocks. They represent various industrial sectors of the Indian economy. Sensex is also known as BSE 30 and S&P BSE SENSEX. The word 'Sensex' is a portmanteau of the words 'Sensitive' and 'Index.' SENSEX is widely reported in domestic and international markets through print and electronic media. The indexing system is scientifically designed, based on globally accepted construction and review methodology. Since September 2003, S&P BSE Sensex is being determined on a free-float market capitalization methodology.