Stock To Sell Post Q4, TP Rs 110: Energy PSU Plunges 11%, Rs 7 Dividend Declared, Yield 5.10%

Brokerage firm Investec has decided to downgrade large cap PSU Indian Oil Corporation Ltd (IOC) to sell after Q4 missed estimates amid weaker refining margins. The analyst said that earnings volatility is likely to continue in future. The PSU does not have pricing freedom for diesel, petrol, and CNG. Current market price of Indian Oil Corporation share on BSE is Rs 157.65 with intraday fall of 0.82%. IOC shares plummeted 11.37% in last 2-weeks span. The board of directors of Indian Oil Corporation on April 30, 2024 recommended a final dividend of Rs 7.00/share of the face value of Rs 10/- each.

IOC share offered return of 88% in last 1-year and 58% in last 6-months. Meanwhile, the analyst has recommended sell call from hold to IOC shares with target price of Rs 110. It has upgraded the target price for sell call from Rs 85 to Rs 110 now. Life Insurance Corporation Of India has 6.92% stake in IOC with 977,788,060 shares of the PSU. More details below:

Indian Oil Corporation Ltd Q4: The PSU on April 30 announced a decline of 52% in its standalone net profit at Rs 4838 crore for the quarter ended March 2024 as against Rs 10,059 crore reported in the corresponding quarter of last year. Indian Oil Corporation Ltd's revenue from operations slipped 3% to Rs 2.19 lakh crore for Q4 as against Rs 2.26 lakh crore in the preceding year's quarter.

Indian Oil Corporation Ltd Share Performance & Return: The 52-week high price of Indian Oil Corporation share on BSE is Rs 196.80 per share (08/02/2024) and 52-week low price is Rs 83.35 per share (12/05/2023), respectively. IOC shares declined 10% in last 3-months, soared 94% in last 2-years, and gave return of 65% in last 5-years.

IOC Latest Dividend: The PSU on April 30 issued BSE filing stating, "It is further informed that the Board has recommended a final dividend of 70% for the year 2023-24 i.e. Rs. 7.00 per equity share of face value of Rs.10/- each on the paid-up share capital, subject to the approval of the shareholders at the ensuing Annual General Meeting (AGM) of the Company. The final dividend would be paid within 30 days from the date of declaration at the AGM. The record date for payment of final dividend would be fixed and intimated in due course."

Indian Oil Corporation Ltd Dividend History: IOC declared 38 dividends since August 27, 2001. In last 1-year, IOC announced an equity dividend amounting to Rs 8.00 per share. At the current share price of Rs 157.65 per share, Indian Oil Corporation Ltd.'s dividend yield is 5.10%.

Change In Directorate: Recently, IOC on May 11, 2024 informed appointment of Ms Sujata as Government Nominee Director on the Board of IndianOil with effect from 11 May 2024.

Indian Oil Corporation Ltd Bonus Share History: Indian Oil Corporation offered 5 bonuses issues since August 14, 2003. The PSU's last Bonus was announced in the ratio of 1:2 with ex-date fixed as June 30, 2022.

Indian Oil Corporation Ltd Technical Analysis: Score is 53.5 indicating the stock is technically neutral. Stocks with score above 70 are considered as technically strong. RSI is 41.3, RSI below 30 is considered oversold and above 70 overbought. MFI is 21.5, MFI below 30 is considered oversold and above 70 overbought. MACD is above its center and signal Line, this is a bullish indicator. Mutual Funds have increased holdings from 1.75% to 2.34% in March 2024 quarter. Number of FII/FPI investors increased from 788 to 824 in Mar 2024 quarter, according to Trendlyne.

Indian Oil Corporation About: Indian Oil Corporation Ltd is India's largest commercial ISO-9002 certified enterprise, is the highest ranked Indian company in the prestigious Fortune 'Global 500' listing. IOCL is the 20th largest petroleum company in the world, according to its official website.

Disclaimer:

The stock has been picked from the brokerage report of Investec. Greynium Information Technologies, the Author, and the respective Brokerage House are not liable for any losses caused as a result of decisions based on the article. Goodreturns.in advises users to check with certified experts before taking any investment decision.