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Indian Oil Corporation Limited (IOC) Fair Value & Analysis

Energy · IN · Market cap ₹2.0T (≈ $20.8B) · ISIN INE242A01010

What is Indian Oil Corporation Limited really worth?

IO Indian Oil Corporation Limited IOC · NSE
Price₹137.60
Fair Value₹236.72
Upside+72.0%
Quality61/100

A solid business, trading 42% below our fair value of ₹236.72.

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Strengths

Low debt · generates free cash flow
Ranks above peers (14/14)

Risks

!Weak Growth (revenue 5y +16.6 %/yr)
!Thin margins · 5.4% net margin
!Moderate moat 50/100

For context

·7.27% dividend yield
Evidence: High Range ₹147.73 – ₹306.79

Fair value as of: Aug 30, 2026

From 26 valuation models · updated 6 days ago

Fair value updated Aug 30, 2026, revised from ₹402.53 to ₹236.72 (−41.2%) since Aug 13, 2026. Share price −4.4% over the past month.

What runs behind every stock

69 individual criteria per stock, every one traceable See the method →

What matters now

  • The price is below even our cautious bear case (₹147.73). The market is more pessimistic than our downside scenario.
  • Solid quality (61/100) at a price below fair value, the discount is the argument here, not the business quality.
  • A fairly wide model range (₹147.73 to ₹306.79) leaves room in how you read the outcome.

Price vs Fair Value (5 years)

₹184.65 ₹49.72 Fair Value ₹236.72 May 2021 Sep 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Aug 30, 2026.

How to read this chart

60‑month range ₹49.72 – ₹184.65 · fair‑value band ₹147.73 – ₹306.79 · the ₹137.60 price screens below the ₹236.72 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Aug 30, 2026.

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Analysis

Indian Oil Corporation Limited (IOC) currently trades at ₹137.60, while our model-based Fair Value estimate is ₹236.72, implying the stock looks roughly 41.9% undervalued today. The Quality Score stands at 61/100 (solid quality), in the Energy sector. Bull case: the Growth DCF group reads highest at a median of ₹544.79 per share, and 25 of the 26 models we run sit above the ₹137.60 price. Bear case: the Asset-Based group reads lowest at ₹104.15, and 1 of the 26 models stay below the price. Evidence for this calculation is high.

Over the trailing twelve months, Indian Oil Corporation Limited generated revenue of ₹7.8T at a net margin of 5.4%. Revenue grew 6.7% year over year. It earns a return on equity of 21.0%. Net debt stands at ₹1.3T. Fundamentals as of Aug 30, 2026

Our scenario range runs from ₹147.73 (bear case) to ₹306.79 (bull case); at ₹137.60, the current price sits below that range. Bear and bull are the same models run on conservative and optimistic assumptions (margins, growth, valuation multiples), so a plausible valuation range, not a price target. The share trades about 26% below its 52-week high and 8% above its 52-week low, currently below its 200-day average. For context, the median of 10 Energy peers we cover trades at −59% fair-value upside, at 72%, IOC screens cheaper than that median.

Fair Value models

This estimate rests on fiscal year 2026 figures, and about 5 months have passed since. In that time the company retained roughly ₹8.85 per share, which is 3.7 % of the fair value. The fair value deliberately does not add this in: the models value reported figures, not a projection.

Each model estimates fair value its own way; the Fair Value above is the evidence-weighted, family-balanced blend. Evidence (0–100) measures how completely this model’s inputs are available: well-fed models carry more weight in the blend. The spread across models is intentional, each one stresses a different value driver; dividend models, for instance, come out structurally low when payout is small. Every input is real reported data, nothing guessed.

Model Bear Bear = the cautious scenario: the same model computed with conservative anchors (lower growth, margins and valuation multiples). Together with Bull it frames a plausible valuation range, not a price target.BaseBull Bull = the optimistic scenario: the same model computed with favourable anchors (higher growth, margins and valuation multiples). Together with Bear it frames a plausible valuation range, not a price target. Evidence
Highest evidence
FCF DCF ₹335.90 ₹563.27 ₹930.71 78
Growth DCF ₹343.14 ₹544.79 ₹850.54 77
5Y EBITDA Exit ₹236.30 ₹382.98 ₹552.04 75
All 26 models by family
DCF Models
FCF DCF ₹335.90 ₹563.27 ₹930.71 78
Owner Earnings ₹238.96 ₹407.07 ₹678.74 74
5Y Revenue Exit ₹333.83 ₹566.69 ₹865.34 71
5Y EBITDA Exit ₹236.30 ₹382.98 ₹552.04 75
5Y P/E Exit ₹274.36 ₹454.67 ₹643.54 70
10Y Revenue Exit ₹318.95 ₹535.86 ₹830.25 65
10Y EBITDA Exit ₹267.56 ₹404.87 ₹583.99 68
10Y P/E Exit ₹292.45 ₹455.99 ₹655.91 63
Earnings-Based
Graham-Dodd ₹202.71 ₹651.17 ₹868.72 64
Lynch FV ₹144.40 ₹206.29 ₹268.18 61
PEG = 1.0 ₹144.40 ₹206.29 ₹268.18 57
EPV ₹289.58 ₹347.05 ₹398.13 74
Dividend Discount
Gordon GGM ₹93.34 ₹203.77 ₹342.85 65
DDM Multi-Stage ₹93.34 ₹159.65 ₹212.36 66
Multiples
P/E Multiple ₹313.01 ₹417.35 ₹521.69 63
P/S Multiple ₹380.09 ₹506.78 ₹633.48 58
P/B Multiple ₹209.86 ₹279.81 ₹349.77 55
EV/EBIT ₹281.44 ₹387.27 ₹493.10 66
EV/EBITDA ₹213.15 ₹296.21 ₹379.28 67
EV/Revenue ₹349.17 ₹514.27 ₹679.36 53
Asset-Based
NCAV (Graham) ₹77.73 ₹104.15 ₹155.45 54
Growth DCF
Growth DCF ₹343.14 ₹544.79 ₹850.54 77
Rev-Margin DCF ₹333.83 ₹565.81 ₹834.42 72
Economic Profit
Residual Income ₹201.99 ₹265.12 ₹1,018 64
ROIC Compounder ₹315.06 ₹418.84 ₹546.26 72
Growth Earnings
Growth-Adj P/E ₹276.12 ₹394.46 ₹512.80 67

Widest divergence: Growth DCF (₹544.79) versus Asset-Based (₹104.15). Highest evidence: FCF DCF (78).

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Key figures & financial health

P/E ratio 4.5
P/S ratio 0.24 P/E × margin
EPS (TTM) ₹30.71 price ÷ EPS = P/E 4.5
Dividend yield 7.3% payout 32.6%
Net margin 5.4% FY2026
Return on equity 21.0% TTM
More key figures
Profitability
Return on assets (EBIT) 17.8% avg 5y
Operating margin 9.2% TTM
Growth
Revenue (TTM) ₹7.8T TTM
Revenue growth (YoY) +6.7% 3y avg −2.3%
EPS growth (YoY) +78.1%
Balance sheet & cash flow
Free cash flow ₹435B FY2026
Net debt ₹1.3T FY2026 · ≈ 2.9 yrs of FCF

Figures from reported company fundamentals · as of Aug 30, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 61/100

Of which business quality 60 · Market factors (momentum, volatility) 45

Profitability 59
Margins and returns on capital today
Quality Growth 71
Are margins and returns improving?
Cashflow 50
Earnings quality: real cash, not paper profit
Fin. Strength 47
Balance sheet, leverage, solvency risk
Investment 60
Disciplined investing over empire-building
Low Volatility 77
Calm price path (market factor)
Momentum 35
Price trend over the last 3–12 months (market factor)
52W Momentum 26
Distance to the 52-week high (market factor)
Net Issuance 82
Buybacks instead of dilution

Non-valuation factor families (profitability, growth, cashflow, financial strength, momentum …), each academically grounded. Valuation itself sits in the Fair Value and is deliberately excluded here to avoid double-counting.

All values are scores from 0 to 100 (100 = best against fixed, research-based bands), not percentages. The three market factors (momentum, 52-week proximity, low volatility) are displayed but carry zero weight in the headline number: market sentiment is not a business property.

About the company

Indian Oil Corporation Limited, together with its subsidiaries, engages in the oil, gas, petrochemicals, and alternative energy source businesses in India and internationally. It operates through Sale of Petroleum Products, Sale of Petrochemicals, Sale of Gas, and Other segments.

Full company description

Indian Oil Corporation Limited, together with its subsidiaries, engages in the oil, gas, petrochemicals, and alternative energy source businesses in India and internationally. It operates through Sale of Petroleum Products, Sale of Petrochemicals, Sale of Gas, and Other segments. The company is involved in the refining of petroleum products; exploration and production of crude oil and gas; explosives and cryogenic businesses; pipeline transportation of crude oil, petroleum, and gas; petrochemicals and gasoline; gas and LPG marketing; research and development; city gas distribution; and downstream operations. It also engages in low carbon, new, clean, and green energy businesses; lube blending; marketing of lubricants and base oil; participation in the shale gas asset project; crude oil trading; import and export of petroleum products; investment in E&P assets, battery technology, and alternative energy technology companies; and wind mill and solar power generation. In addition, the company provides terminalling, retailing, aviation refueling, and bunkering; and financial services, as well as operates fuel stations. It serves motorists, households, businesses, society, suppliers, business partners, and the sports industry. The company was formerly known as Indian Oil Company Limited and changed its name to Indian Oil Corporation Limited in September 1964. Indian Oil Corporation Limited was incorporated in 1959 and is based in New Delhi, India.

Company description, as reported by the company or data provider.

Revenue & earnings trend

FY2022 – FY2026 · reported fiscal years

Indian Oil Corporation Limited reported revenue of ₹7.8T in FY2026 versus ₹5.9T in FY2022, a compound +7.4%/yr. Reported net income was ₹421B in FY2026, compounding +13.8%/yr from FY2022.

Growth Quality 40/100
Revenue growth is weak, negative or inconsistent.
Latest Revenue (FY 2026)
₹7.8T
Latest YoY
+3.5%
Avg. revenue growth/yr (3Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
−2.3%
Avg. revenue growth/yr (5Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+16.6%
Avg. revenue growth/yr (24Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+8.4%
Value creation/yr (5Y, in INR) Earnings growth per share (CAGR 5 years, EBIT basis) plus dividend yield: value created per share and year. Measured in INR: this currency has depreciated against the euro and dollar over the long run, so part of the nominal rate is currency erosion that never reaches a EUR/USD investor.
+3.6% (−3.7 + 7.3)
Revenue +7.4%/yr
FY22 ₹5.9T
FY23 ₹8.4T
FY24 ₹7.8T
FY25 ₹7.6T
FY26 ₹7.8T
Net income +13.8%/yr
FY22 ₹251B
FY23 ₹97.9B
FY24 ₹417B
FY25 ₹136B
FY26 ₹421B
Character of growth · EPS growth decomposed (2015-2026) +11.4 % p.a.
Revenue per share +8.1 %

of which total revenue +8.1 % · buybacks/dilution +0.0 %

EBIT margin −2.0 %
Tax rate +0.8 %
Residual (interest, one-offs) +4.3 %

Annual growth per factor. These are factors, not summands: multiplied they give the EPS growth rate, added they do not quite. Start and end points are 3-year averages (details on hover).

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Cite: Fair Value Calculator (2026). "Indian Oil Corporation Limited Fair Value". https://www.fairvalue-calculator.com/stock/IOC

Earlier news

External third-party headlines (Yahoo Finance, Reuters and others), not an editorial selection.

Peer Group

Oil & Gas Refining & Marketing · 109 stocks

How this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.

Quality Score 61 · Top 25%
Fair Value upside +72% · Top 25%
Return on equity (TTM) 21% · Top 25%
Return on assets 7% · Top 25%
Net margin (TTM) 5% · Top 25%
Operating margin (TTM) 9% · Above median
Revenue growth 7% · Above median
Dividend yield (TTM) 7.3% · Top 25%
Debt / equity 0.25× · Lower than median

Valuation Multiples vs Oil & Gas Refining & Marketing median · lower = cheaper

P/E (TTM) 4.5× · Cheaper than 75% of peers
P/B 0.89× · Cheaper than median
P/S (TTM) 0.25× · Cheaper than median
P/FCF 0.0× · Cheaper than 75% of peers
EV/EBITDA 3.2× · Cheaper than 75% of peers

Strength profile in five axes (Snowflake)

Five quick dimensions, each 0 to 100: VALUE (fair-value potential), FUTURE (revenue growth), PAST (return on equity), HEALTH (low debt), DIVIDEND (yield). Green = this stock, grey = typical sector peer.

VALUEFUTUREPASTHEALTHDIVIDEND
This stock
VALUEFUTUREPASTHEALTHDIVIDEND
Sector peers
VALUE100 · sector 13
FUTURE34 · sector 15
PAST84 · sector 33
HEALTH87 · sector 83
DIVIDEND100 · sector 55

Values & ESG

Does this company touch areas you may want to avoid? The classification is inferred from sector and industry.

Oil & gas

Similar stocks

10 more Oil & Gas Refining & Marketing stocks, each showing price versus our Fair Value estimate (as of Aug 30, 2026).

Stock Price Fair Value vs Fair Value
Reliance Industries Limited RELIANCE ₹1,314 ₹835.66 −36%
Valero Energy Corporation VLO $352.36 $127.32 −64%
Marathon Petroleum Corporation MPC $368.83 $133.18 −64%
Phillips 66 PSX $246.58 $99.41 −60%
Neste Oyj NESTE €31.28 €3.83 −88%
Formosa Petrochemical Corporation 6505 75.80 TWD 15.32 TWD −80%
HF Sinclair Corporation DINO $87.93 $44.96 −49%
Bharat Petroleum Corporation BPCL ₹318.00 ₹846.81 +166%
SK Innovation Co 096770 131,500 KRW 53,541 KRW −59%
Sunoco LP, SUN $75.55 $53.36 −29%

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Frequently asked questions

Is Indian Oil Corporation Limited (IOC) overvalued or undervalued?
As of Aug 30, 2026, our model estimates a fair value of ₹236.72 versus a price of ₹137.60, about +72% upside (undervalued).
What is the fair value of IOC?
Our model-based fair value for Indian Oil Corporation Limited is ₹236.72 (as of Aug 30, 2026), built from audited fundamentals. The current price: ₹137.60.
What is the quality score of IOC?
Indian Oil Corporation Limited has a Quality Score of 61/100. It measures business quality (profitability, growth, cash flow, balance-sheet strength, investment discipline, share issuance). Market factors such as price momentum and volatility do not enter the number; they are shown separately in the detail view.
What is the revenue of Indian Oil Corporation Limited (IOC)?
Indian Oil Corporation Limited reported trailing-twelve-month revenue of about ₹7.8T (latest available figure, as of Aug 30, 2026).
What is the net profit margin of IOC?
The net profit margin of Indian Oil Corporation Limited is about 5.4%, meaning it keeps roughly 5.4% of revenue as net income. Based on the latest reported figures.
Does Indian Oil Corporation Limited pay a dividend?
Indian Oil Corporation Limited currently shows a dividend yield of about 7.27% relative to its recent price (as of Aug 30, 2026).
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