IOC Share Price Target 2023: Motilal Oswal is bullish on the stock of state-owned Indian Oil Corporation (IOC) after the company recently announced its September quarter earnings. The company reported a return to profitability with a net profit of Rs 12,967.32 crore in the three months to September 30 – more than half of its best-ever annual profit in just one quarter.
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IOC Share Price Target 2023
Domestic Brokerage tagged a ‘BUY’ rating on the stock estimating a whopping 24 per cent upside. It has given a price target of Rs 115.
The report further said, “IOCL reported EBITDA of Rs 213b, up 4.3x YoY, in line with our estimate of Rs 210b, led by better-than-expected GRM at USD17.9/bbl (vs. our est. of USD14.9/bbl) and higher marketing GM at INR5.8/lit. (vs. our estimate of INR5/lit).”
“OMCs are estimated to be generating marketing margin of INR8.2 on petrol and a marketing loss of INR3.8 on diesel in 3QFY24 to date. Margins may also be affected by retail fuel price cuts in the wake of upcoming elections and/or a rise in crude oil prices due to quota management by OPEC+,” it added.
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IOC Dividend 2023 Announcement
The company declared an interim dividend of 50 per cent to the shareholders, amounting to Rs 5 per equity share of the face value of Rs 10 each for the year 2023-2024. The large cap company operating in Gas & Petroleum sector has also fixed the record date on Friday, 10th November 2023 for the purpose of ascertaining the eligibility of shareholders for payment of interim dividend. The interim dividend will be paid to the eligible shareholders on or before 30th November 2023.
Indian Oil Corporation Q2 Results
IOC reported a return to profitability with a net profit of Rs 12,967.32 crore in the three months to September 30 – more than half of its best-ever annual profit in just one quarter. The net profit came on the back of a boost in refining and marketing margin. In July-September 2022, it incurred a loss of Rs 272.35 crore, according to a stock exchange filing by the company.
Pre-tax earnings from sale of petroleum products soared to Rs 17,755.95 crore in the second quarter of the current fiscal compared to Rs 104.04 crore in the same period last year.
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The company sold 21.941 million tonne of petroleum products in the September quarter, up from 21.562 million tonne last year but lower than 23.305 million tonne sales in the preceding quarter.
