Corporate Finance

Assignment
INDIAN OIL CORPORATION LIMITED

Company Code - IOCL

By – Chander lekha (19PGP037

Executive summary

• Indian Oil Corporation Limited,

together with its subsidiaries,
engages in the refining, pipeline
transportation, and marketing of
petroleum products in India.
 • Stable Share Price: IOC has not had significant
Share price price volatility in the past 3 months.
Market Performance
 • 8.23x Price to Earning Ratio
Valuation • Below Fair Value: IOC (₹115.1) is trading above our estimate of fair
value (₹67.01)
• Significantly Below Fair Value: IOC is trading above our estimate of fair value.
Price to Earnings Ratio
Future Growth
• 22.3% Forecasted annual earnings growth

Earnings and Revenue Growth Forecast

Return on Equity
 • Short Term Liabilities: IOC's short term assets (₹1,202.4B) do not cover its short term

Financial Position •
liabilities (₹1,537.5B).
Long Term Liabilities: IOC's short term assets (₹1,202.4B) exceed its long term liabilities (₹653.7B).
Analysis •
Debt To Equity History and Analysis
• Debt Level: IOC's debt to equity ratio (73.7%) is considered high.
• Reducing Debt: IOC's debt to equity ratio has reduced from 99.3% to
73.7% over the past 5 years.
• Debt Coverage: IOC's debt is well covered by operating cash
flow (24.8%).
• Interest Coverage: IOC's interest payments on its debt are well
covered by EBIT (9.6x coverage).
Balance Sheet