Indian Oil Corporation Limited (IOC.BO) stock analysis

In our weekly check, Indian Oil Corporation Limited is graded C (A to F). Of 25 checks on debt, profit, cash flow and trend: 15 pass, warnings: 5, red flags: 5.

About Indian Oil Corporation Limited

Indian Oil Corporation Limited is an Energy company (Oil & Gas Refining & Marketing) based in India, listed on BSE as IOC.BO.

What our checks show for IOC.BO

Red flags

• The gross margin fell by 3.3 points, to 13.2%: costs are rising faster than prices.
• The net margin is only 3.9%: little room if costs rise.
• The stock has fallen as much as 68% from a peak. Would you have held through that?
• Recovering from its deepest fall took about 3.6 years.
• Return on capital (ROCE) is zero or negative: the business does not earn on the money put into it.

Warning signs

• The net margin fell by 0.3 points over 5 years, to 3.9%: the company keeps less of each sale as profit.
• Analysts expect earnings per share to shrink about 10.2% a year.
• Analysts expect only about 2.9% a year of growth in revenue.
• Analysts expect the net margin to shrink by 1.3 points from today's 3.9%.
• Revenue grew only 0.7% a year over the last 3 years.

Strengths

• Debt is low: 0x equity.
• Operating cash flow is 2.14x net profit: the profit arrives as real cash.
• Earnings per share grew 50.9% a year over the last 3 years.
• Net profit grew 50.9% a year over the last 3 years.
• The dividend takes 12% of profit: there is a cushion.
• The price is 5.3 times earnings (P/E), reasonable for its growth.

Similar companies

5019.T · BPCL.NS · 6505.TW · 5020.T · MOL.BD · HINDPETRO.NS

Questions

What grade does Indian Oil Corporation Limited (IOC.BO) have?

In our weekly check, Indian Oil Corporation Limited is graded C (A to F). Of 25 checks on debt, profit, cash flow and trend: 15 pass, warnings: 5, red flags: 5. The grade is a risk check, not a buy or sell recommendation.

What are the main risks of IOC.BO stock?

This week's biggest flags for Indian Oil Corporation Limited: Gross margin falling, Thin margins, Deep past fall. In total 10 of 25 checks show a warning or a red flag.

What does Indian Oil Corporation Limited do?

Indian Oil Corporation Limited is an Energy company (Oil & Gas Refining & Marketing) based in India, listed on BSE as IOC.BO.

The grade is a risk check, not a price forecast, and not investment advice. In our 10-year test (S&P 500, 2016-2026), stocks we graded A or B fell more than 30% 2-3 times less often than D or F, without a lower average return.

Updated 2026-10-31

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