Rs 7 Dividend, 4.80% Yield: Buy Refineries PSU For TP Rs 200 After New JV Announcement

Large cap public sector undertaking Indian Oil Corporation Ltd (IOC) shares declined over 2% in last 1-week but gained 136% in 2-years. Recently, Indian Oil Corporation entered into a Joint Venture Agreement with GPS Renewables Private Limited, one of the leading biofuels Companies in the country. This association will pave the way for the formation of a 50:50 joint venture company dedicated to advancing biofuel adoption across the country.

Last trading price of Indian Oil Corporation share on BSE is Rs 166.75 with intraday decline of 1.30%. IOC share offered return of 81% in last 1-year and gained 122% in last 2-years. LIC has 6.92% stake in IOC with 977,788,060 shares of the PSU. Check key details below:

Should You Buy IOC Shares? Motilal Oswal Financial Services recommended buy call to IOC share with target price of Rs 195. Meanwhile, Sumeet Bagadia of Choice Broking has also assigned buy call to Indian Oil Corporation Ltd (IOCL) shares for target prices of Rs 190 and Rs 200 with a stop loss at Rs 165.

Indian Oil Corporation Dividend: IOC has already recommended Rs 7 per share dividend and set July 12 as record date for dividend. As per the BSE filing of IOC 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 Dividend History: Indian Oil Corporation announced 39 dividends since August 27, 2001. In last 1-year, IOC announced an equity dividend amounting to Rs 8.00 per share. At the current share price of Rs 166.75, IOC offers a dividend yield of 4.80%.

IOC Bonus Issue History: Indian Oil Corporation Ltd. has given 5 bonuses since Aug. 14, 2003. The last Bonus that Indian Oil Corporation Ltd. anoununced was in the ratio 1:2 with ex-date of June 30, 2022.

Indian Oil Corporation Share Performance: IOC market capitalisation stood Rs 2,35,471.65 crore. IOC shares rallied 30% year-to-date, gained 34% in last 6-months, and offered return of 122% in last 3-years. In last 5-years, Indian Oil Corporation stock zoomed 62% in last 5-years. The 52-week high price of IOC shares 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's JV With Singapore's Sun Mobility: IOC recently gave nod for formation of Joint Venture Company for battery swapping business in India as a Private Limited Company with 50:50 collaboration between IndianQil and Sun Mobility Pte. Ltd. Singapore (SMS). The JV will carry out the deployment and operation of battery-as-a-service solution (BAAS) for two-wheeler, three-wheeler, and four-wheeler vehicles, each with a gross vehicle weight lower than 2 tonnes (small format electric vehicle - SFEV) and retrofit to convert to SFEV using docks and batteries to enable their functioning as electric vehicles for SFEV-BAAS over a network of swap points including Indian Oil retail outlets, according to the BSE filing.

Indian Oil Corporation Ltd Q4: Indian Oil Corporation 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 similar quarter of last year. Indian Oil Corporation's revenue from operations slipped 3% to Rs 2.19 lakh crore for Q4 as compared to Rs 2.26 lakh crore in the preceding year's quarter.

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.

Disclaimer: The stock has been picked from the brokerage report of Motilal Oswal and Choice Broking. Greynium Information Technologies, the Author, and the respective Brokerage House are not liable for any losses caused as a result of decisions based on the article. Goodreturns.in advises users to check with certified experts before taking any investment decision.