Marketing margins of the three oil marketing companies' (OMCs) increased significantly during April-June quarter of 2020-21 and boosted EBITDA compared with the fourth quarter of FY2020.
ICICI Direct recommended hold rating on Indian Oil Corporation with a target price of Rs 90 in its research report dated August 04, 2020.
Prabhudas Lilladher is bullish on Indian Oil Corporation has recommended buy rating on the stock with a target price of Rs 114 in its research report dated August 04, 2020.
Reduced travel and industrial activity have impacted the demand for fuels and the overall performance at IOCL. The situation is gradually improving
The share price has declined 40 percent in the past nine months.
According to ICICI Direct, On the F&O front, the open interest in the stock increased sharply in January and February, which are the major short additions.
IOC said it is on track to achieve its planned capital spending of Rs 26,143 crore in the fiscal to March 2021, but future capex depends on long-term demand potential in the country.
Post a sharp hit during the initial lockdown phase, the performance of IOC is now improving. However, near-term challenges remain
ICICI Direct recommended hold rating on Indian Oil Corporation with a target price of Rs 90 in its research report dated June 26, 2020.
Emkay Global Financial is bullish on Indian Oil Corporation has recommended buy rating on the stock with a target price of Rs 110 in its research report dated June 25, 2020.
In addition, the crude oil prices in the international markets also gradually inched above $40 a barrel mark after falling to two-decade lows of $15.98 a barrel in April.
The company said though it is on track to spend the approved capital expenditure for 2020-21, it has "critically examined all capex proposals for rationalisation of cost and time frame."
Motilal Oswal reiterated IOC as its top pick, with a target price of Rs 168, valuing the company at 1.2x FY22 PBV.
The oil major has tied up with additional imports for April and May to the tune of over 50 per cent normal imports to ensure uninterrupted supply of bulk LPG.
Overall oil prices corrected nearly 68 percent from its 2020 highs seen in early January.
Singh, who continued to oversee the mammoth operations of ensuring that fuel reaches every nook and corner despite bereavement of his father on the day the 21-day lockdown was declared, said there is no shortage of any fuel in the country and customers should not resort to panic booking of LPG refills.
"We have successfully rolled out the supply of BS-VI grade fuel across the country," IOC Chairman Sanjiv Singh said.
The company "issued 29,950 unsecured, rated, taxable, redeemable, non-convertible debentures of Rs 10,00,000 each aggregating to Rs 2,995 crore on a private placement basis on March 6, 2020, to meet its capex (capital expenditure) requirement," it said in a regulatory filing.
The oil marketing PSU will invest another Rs 388 crore for setting up a grassroot bottling plant at Kharagpur, diesel exhaust fluid (DEF) plant at Budge Budge and lube blending unit at Paharpur in West Bengal.
The top three profit making PSUs including Oil and Natural Gas Corporation (ONGC), Indian Oil Corporation and NTPC contributed 15.3 per cent, 9.68 per cent and 6.73 per cent, respectively to the total profit earned by all profitable CPSEs.