Indian Oil Corporation Company Analysis

Company Profile  : The company is operating in oil refinery business and among India’s largest commercial enterprise. The company is owner of 11oil refinery in India out of 23,  Account for nearly half of the petroleum products, 35% refining capacities in Indian market and 71% of pipeline in India. The company now is setting up joint venture to make its presence globally.

The company also supplying different products for variety of use of customers under the Indane Gas, Survo lubricant, Extra Premium  Petrol, EXTRAMILE etc.

With 65% stake in Bulk customer like Aviation companies and state Transport companies it is leader in also 6500 Dedicated Pump with 45000 Customer touch points.

The company is increasing its presence in Petrochemical business and now it is second largest player in the field.

Share Holding Pattern

Financials and Ratio

 2010-112011-122012-132013-142014-15 2015-16
Revenue 331526.87401675.68450611.20476627.38441670.18352849.41
Net Profit7445.483954.625005.177019.095273.0310399.03
NPM2.260.91.111.481.202.96
EPS 30.6716.2920.6128.9121.7242.83
Book Value 227.84238.32251.68271.71279.87304.57
Dividend Pay out 30.9730.6930.0730.0930.3832.68
Dividend per Share 9.356.28.76.614
ROE 13.456.838.1910.647.7614.06
ROCE 9.484.395.015.994.288.09
ROA 4.281.882.232.792.394.58
Debt to Equity 0.911.221.281.220.730.57
Asset Turnover 188.90189.86199.6188.11199.01154.71

Future Prospects : As India’s Leading oil refinery and large Downstream Oil company it was vulnerable for Oil fluctuations. Big part of revenue is also coming from ATF, natural gas and state Transport which makes it attractive. Subsidy is now very low and the customer is buying at market prices which is helping the company. The company is planning capital expenditure.

The profile of the company is mixed. Good connections with ONGC, large refinery capacity, diversified portfolio for Petrol and natural gas but still it is Not performing in predictable way. Margins of the company is also low which sometimes lower than cost of debt.

Now as the company is state owned and LIC and ONGC, Oil India is also holding stake its is nearly risk less.

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About Ashutosh Tilak

Tracking Indian Capital Market since 2010. Finance Student, On this blog I am writing about finance and Investing. You can contact me analystashu@gmail.com or @androidashu & @InsideFinanc on twitter