Pune Wealth Management：Rs 7 Dividend： Energy PSU Issues Record Date, Acquisition Update; Buy For TP Rs 195

Large cap public sector undertaking Indian Oil Corporation Ltd (IOC) today fixed July 12 as the record date for Rs 7 per share dividendPune Wealth Management. Current market price of Indian Oil Corporation Ltd share on BSE is Rs 162.40 per shareChennai Stock. IOC share offered return of 80% in last 1-year and declined over 3% in last 1-year. The company has a market capitalisation of Rs 2,29,328.91 crore. It is worth mentioning that LIC has 6.92% stake in IOC with 977,788,060 shares of the PSU. More details below:

Indian Oil Corporation Ltd Sets Record Date For Dividend: As per the regulatory filing of Indian Oil Corporation dated May 30, "Friday, July 12, 2024, as the Record Date for the purpose of determining eligibility of members to receive final dividend for the year ended March 31, 2024."

IOC Issues Acquisition Update: The regulatory filing of IOC dated May 30 stated, "This is in reference to our earlier intimation dated July 07, 2024 wherein it was informed that the Board had accorded approval for investment of USD 78.31 million in IOCL Singapore PteJinnai Wealth Management. Ltd., Singapore (a Wholly Owned Subsidiary of IndianQil) for acquisition of Preference Shares and Warrants of SMS. In this regard, we would like to inform that, the Board at its meeting held on May 30, 2024 has accorded approval for re-routing the investment of USD 78.31 million in 10C Global Capital Management IFSC Limited (a Wholly Owned Subsidiary of IndianOil) in place of IOCL Singapore PteLucknow Wealth Management. Ltd. for acquisition of Preference Shares and Warrants of SMS."

Indian Oil Corporation Share Performance: The 52-week high price of Indian Oil Corporation share on BSE is Rs 196.80 per share (08/02/2024) and 52-week low price is Rs 85.51 per share (26/10/2023), respectively. IOC shares slipped 1.93% in last 3-months, gave return of 46% in last 6-months, zoomed 80% in last 1-year, and rallied 122% in last 3-years.

IOC Dividend: According to the regulatory filing issued as on April 30, "Board has recommended a final dividend of 70% for the year 2023-24 i.e. Rs. 7.00 per equity share of face value of Rs.10/- each on the paid-up share capital, subject to the approval of the shareholders at the ensuing Annual General Meeting (AGM) of the Company. The final dividend would be paid within 30 days from the date of declaration at the AGM. The record date for payment of final dividend would be fixed and intimated in due course."

Indian Oil Corporation Ltd Q4: The PSU on April 30 announced a decline of 52% in its standalone net profit at Rs 4838 crore for the quarter ended March 2024 as against Rs 10,059 crore reported in the corresponding quarter of last year. Indian Oil Corporation Ltd's revenue from operations slipped 3% to Rs 2.19 lakh crore for Q4 as against Rs 2.26 lakh crore in the preceding year's quarter.

IOC Gets Buy/Sell Call: Investec decided to downgrade IOC share to sell after Q4 missed estimates amid weaker refining margins. The analyst assigned sell call from hold to IOC shares with target price of Rs 110. The brokerage asserted that earnings volatility is likely to continue in future. Meanwhile, leading brokerage firm Motilal Oswal Financial Services recommended buy to IOC share with target price of Rs 195.

On the other hand, Prabhudas Lilladher gave reduce call to IOC share with target price of Rs 151. "Factoring in structural weakness in GRMs and the inability to pass on the rise in fuel cost we anticipate gross refining margins at $6 per barrel for FY25 and FY26 and gross marketing margin at Rs 4.2 per litre for the same period. We rerate the stock from 'sell' to 'reduce' due to correction in stock price rating with a target price of Rs 151 based on 1x FY26E P/BV," said the analyst.

Indian Oil Corporation About: Indian Oil Corporation Ltd is India's largest commercial ISO-9002 certified enterprise, is the highest ranked Indian company in the prestigious Fortune 'Global 500' listing. IOCL is the 20th largest petroleum company in the world, according to its official website.