Indian Oil Corporation Ltd.
Energy · NSE
52-week range
₹128 – ₹187
From 52w high
-22.5%
RSI (14)
48.4
vs SMA 50 / 200
↓ 50 · ↓ 200
Indian Oil Corporation (IOC) trades at 144.69, a trailing PE of 5.58 on a profit margin of 4.64% and a dividend yield of 6.91%. The stock sits 4.3% below its 200-DMA and is down 22.46% from its 52-week high, with a debt-to-equity ratio of 72.63 on a rising debt trend. Forward PE of 10.47 implies the market prices in a significant earnings contraction from the current base.
- ✓Dividend yield of 6.91% is among the highest in the NSE Energy peer group at the current price level.
- ✓Trailing PE of 5.58 is the second-lowest among Energy sector peers with available data, below the sector median anchored by ONGC (9.24) and RELIANCE (24.05).
- ✓5-year revenue growth of 5.7% reflects steady top-line expansion for a state-owned oil marketing company operating in a regulated pricing environment.
- ✓Recent Libya discovery (IOCL and Oil India) represents a concrete upstream diversification step beyond the Middle East, as reported by Moneycontrol on April 28.
- ✗Debt-to-equity of 72.63 is exceptionally elevated; the debt trend is rising, and FCF was positive in only 2 of the available years, indicating the balance sheet is under structural pressure.
- ✗Consistency score of 17/100 and ROE above 15% in only 2 of available years point to inconsistent capital efficiency despite the headline earnings growth figure.
- ✗Price is below both the 50-DMA (150.31) and 200-DMA (151.22), with a 22.46% drawdown from the 52-week high and a 15.2% decline over the past 3 months; nearest resistance at 148.34 sits above the current price.
- ✗News sentiment is net negative (4 negative vs 2 positive out of 8 articles), with recent stories citing windfall tax hikes and a sector-wide sell-off tied to West Asia geopolitical risk.
- ·BusinessLine reported on April 13 that IOC shares fell alongside BPCL, HPCL, and Reliance amid a windfall tax hike and rising crude prices — a sector-level margin headwind affecting state oil marketing companies.
- ·On May 1, MSN reported oil and gas stocks tumbled up to 7% on West Asia crisis developments; IOC was named among the affected stocks.
- ·IOCL and Oil India announced a fresh oil and gas discovery in Libya on April 28, representing upstream reserve addition outside the Middle East.
- ?Does the 5-year earnings growth of 513% reflect a structural improvement in IOC's business model, or is it primarily a function of a depressed base year during the COVID-19 demand collapse?
- ?How does IOC's debt-to-equity of 72.63 compare historically to its own 5- and 10-year averages, and what proportion of that debt is government-backed or tied to capex pipelines with defined repayment schedules?
- ?Given that forward PE (10.47) is nearly double trailing PE (5.58), what specific earnings scenario — volume growth, margin compression, or one-time charges — does the implied earnings decline represent?
- ?To what extent is IOC's dividend yield of 6.91% sustainable if FCF generation has been positive in only 2 of the available years?
PE
5.6
Forward PE
10.5
ROE
—
Profit margin
+4.6%
D/E
72.63
Dividend yield
+6.9%
Quality score
50/100
ROE 5y above 15%
2/5 yrs
FCF 5y positive
2/5 yrs
For informational purposes only. Not investment advice. VivaTrades is not a SEBI-registered Investment Adviser or Research Analyst. Market data sourced from public feeds; consult a registered adviser before any investment decision.Analysis generated 10 May 2026.