I O C L (IOC)

FairStock Score: 88/100 — HIGH CONVICTION

Score breakdown: P/E: 3/3 · ROCE: 0/2 · Growth: 2/2 · Dividend: 1/1

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I wear both Buffett's and Graham's lens here. IOCL is a ₹1.97 lakh Cr refiner-marketer trading at ₹139.40, below its ₹159.42 book value—P/B 0.87—and just 5.70 times earnings. That catches a Grahamite's eye: the Graham Number is ₹282.04, implying a 33.53% margin of safety. The 5.92% dividend yield pays me to wait, and promoter holding of 51.50% suggests a stable anchor. Operations show scale: latest quarter sales ₹2.05 lakh Cr and net profit ₹13,502 Cr; sales grew 38.50% and profit 156.07%. But 5-year revenue CAGR is only 9.40%, so this is not a secular compounder. Quality is mixed: ROE 18.71% is respectable, yet ROCE 7.36% says capital earned in the core business is modest, so the moat looks narrow. Debt/equity 0.58 is manageable, Piotroski 7/9 is healthy, Altman Z 2.76 is safe-ish, but current ratio 0.92 is tight and FCF is only ₹2,851 Cr. The valuation debate is sharp: PEG 0.59 and P/E 5.70 look cheap, while DCF intrinsic value of ₹108.08 and EV/EBITDA of 221.93 warn that earnings may be cyclical peak. So I would treat it as a cyclical asset play with income, not a steady compounder. As a cyclical refiner-marketer, I would not pay up. At ₹139.40, the asset and dividend case is real, but I want a wider discount to DCF and evidence ROCE can improve before calling it a long-term Buffett buy.

The full AI analysis, bull and bear case and key monitorables are in FairStock Pro.

Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer