{"id":416675,"date":"2021-05-24T11:14:46","date_gmt":"2021-05-24T05:44:46","guid":{"rendered":"https:\/\/infralive.com\/web\/?p=416675"},"modified":"2021-05-24T12:37:12","modified_gmt":"2021-05-24T07:07:12","slug":"indian-oil-rating-hold-inventory-gain-gave-earnings-a-boost","status":"publish","type":"post","link":"https:\/\/infralive.com\/web\/indian-oil-rating-hold-inventory-gain-gave-earnings-a-boost\/","title":{"rendered":"Indian Oil rating \u2013 Hold: Inventory gain gave earnings a boost"},"content":{"rendered":"<p>Indian Oil Corporation\u2019s (IOC\u2019s) Q4FY21 recurring EPS is up 4x y-o-y driven by inventory gain vs loss, petrochemical Ebitda jump and fall in interest cost. FY21 recurring EPS is also up 4x y-o-y driven by same factors as in Q4 besides 37% y-o-y rise in auto fuel net marketing margin. We have raised FY22E EPS by 4% and TP by 5% to Rs 110 (3% upside) mainly on upgrade in petrochemical Ebitda to reflect the recent margin strength and outlook.<\/p>\n<p>Net marketing margin is weak in FY22-TD at Rs 0.43\/l. Rs 2.05-2.5\/l price hike is required to boost it to Rs 2.5\/l, which is our FY22 estimate. We are optimistic about future hikes given the government\u2019s track record.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Indian Oil Corporation\u2019s (IOC\u2019s) Q4FY21 recurring EPS is up 4x y-o-y driven by inventory gain vs loss, petrochemical Ebitda jump and fall in interest cost. FY21 recurring EPS is also up 4x y-o-y driven by same factors as in Q4 besides 37% y-o-y rise in auto fuel net marketing margin. We have raised FY22E EPS by 4% and TP by 5% to Rs 110 (3% upside) mainly on upgrade in petrochemical Ebitda to reflect the recent margin strength and outlook. Net marketing margin is weak in FY22-TD at Rs 0.43\/l. Rs 2.05-2.5\/l price hike is required to boost it to [&hellip;]<\/p>\n","protected":false},"author":40,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[130,195,138],"tags":[],"class_list":["post-416675","post","type-post","status-publish","format-standard","hentry","category-newspapers","category-oil-gas-the-financial-express","category-the-financial-express"],"acf":[],"_links":{"self":[{"href":"https:\/\/infralive.com\/web\/wp-json\/wp\/v2\/posts\/416675","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/infralive.com\/web\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/infralive.com\/web\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/infralive.com\/web\/wp-json\/wp\/v2\/users\/40"}],"replies":[{"embeddable":true,"href":"https:\/\/infralive.com\/web\/wp-json\/wp\/v2\/comments?post=416675"}],"version-history":[{"count":0,"href":"https:\/\/infralive.com\/web\/wp-json\/wp\/v2\/posts\/416675\/revisions"}],"wp:attachment":[{"href":"https:\/\/infralive.com\/web\/wp-json\/wp\/v2\/media?parent=416675"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/infralive.com\/web\/wp-json\/wp\/v2\/categories?post=416675"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/infralive.com\/web\/wp-json\/wp\/v2\/tags?post=416675"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}