IOCL gains as foreign brokerage reportedly retains buy rating

Indian Oil Corporation rose 1.34% to Rs 325 at 13:10 IST on BSE after a foreign brokerage has reportedly retained its buy rating on the stock and raised target price by 20%.

Meanwhile, the S&P BSE Sensex was down 97.60 points or 0.35% at 27,953.28

On BSE, so far 1.51 lakh shares were traded in the counter as against average daily volume of 3.83 lakh shares in the past one quarter. The stock hit a high of Rs 327.05 and a low of Rs 322.10 so far during the day. The stock had hit a record high of Rs 333.60 on 7 October 2016. The stock had hit a 52-week low of Rs 172.53 on 12 February 2016. The stock had outperformed the market over the past 30 days till 18 October 2016, rising 12.21% compared with Sensex's 2.04% fall. The scrip also outperformed the market in past one quarter, advancing 25.08% as against Sensex's 0.48% rise.

The large-cap company has equity capital of Rs 4855.90 crore. Face value per share is Rs 10.

The foreign brokerage reportedly said that Indian Oil Corporation (IOCL)'s annual report shows that while return ratios rose to six-year high in the financial year ended 31 March 2016 (FY 2016), operating cash flow and free cash flow fell due to lesser savings in working capital compared to the previous financial year (FY 2015). The foreign brokerage said that IOCL has lost market share in diesel and aviation turbine fuel. However, the ramp-up of refinery in Paradip, high petchem profitability and elimination of inventory losses will help the company's free cash flow to stay positive, it said.

IOCL's net profit rose 25.46% to Rs 8268.98 crore on 15.48% fall in total income to Rs 86551.04 crore in Q1 June 2016 over Q1 June 2015.

IOCL is India's flagship national oil company, with business interests that straddle the entire hydrocarbon value chain - from refining, pipeline transportation and marketing of petroleum products to exploration & production of crude oil & gas as well as marketing of natural gas and petrochemicals. The Government of India held 58.28% stake in IOCL (as per the shareholding pattern as on 30 September 2016).

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