During FY14, Indian Oil Corporation (IOC) witnessed 59% YoY rise in net profit to `70.9 bn on account of budgetary support of `371.8 bn in FY14 and a discount of `346.7 bn. The improvement in refining margins could create value for shareholders, going forward.
This document provides an overview of Indian Oil Corporation Limited (IOCL) and discusses the objective of selecting pumps for their cross-country pipeline system. IOCL is India's largest oil and gas company, with a large refining capacity and extensive retail network. The document discusses the types of pumps used in oil industries, focusing on centrifugal pumps. It explains that the objective is to understand IOCL's pump selection process by examining key pump characteristics like pressure, velocity and head, and how these are used to create characteristic curves and select pumps to keep costs low and efficiency high.
PTT Philippines Corporation is a subsidiary of Petroleum Authority of Thailand that markets refined petroleum products and lubricants in the retail, wholesale, and commercial markets in the Philippines. The document outlines a 10 step marketing plan for PTT's gasoline products that includes identifying target markets, customer needs, competition, pricing strategies, and distribution channels. The plan recommends strengthening advertising through celebrity endorsements and sponsoring events to increase brand awareness and market presence as PTT is a new player compared to established competitors like Petron, Shell, and Caltex.
ONGC is an Indian state-owned oil and gas company that produces around 77% of India's crude oil and 81% of its natural gas. It has significant infrastructure including over 15,000 km of pipelines. ONGC focuses on exploring for and producing oil and gas both domestically and through international subsidiaries. It aims to increase oil and gas production capacity to meet India's growing demand and reduce reliance on imports.
This document provides an introduction and overview of National Fertilizers Limited (NFL), an Indian fertilizer company. It discusses NFL's history, facilities and locations, products, marketing operations, corporate objectives, and certification. Some key points:
1) NFL was established in 1974 and has fertilizer plants located across India, with a total installed capacity of 32.31 lakh MT of urea. It produces urea and other chemicals.
2) In addition to urea, NFL manufactures neem-coated urea and bio-fertilizers. It has a nationwide marketing network and focuses on farmer services.
3) NFL's corporate objectives are to achieve high productivity and profitability through
World Class Benchmarking: Petron Corporation is the largest oil refining company in the Philippines, and also a leader in the downstream oil industry.
Learn more at: http://becomeabetterinvestor.net/blog/petron-corporation/
Larry E. Greiner's model of organizational evolution and revolution describes how organizations progress through five phases of growth, each ending in a management crisis. OGDCL (Oil and Gas Development Company Limited) is Pakistan's leading exploration and production company. Formed in 1961, it has grown from exploring and developing Pakistan's oil and gas reserves to pursuing international opportunities. OGDCL aims to increase production and reserves through exploration, projects development, and pursuing strategic alliances both domestically and abroad while implementing best practices. It has achieved significant growth through building expertise, infrastructure, and pursuing an aggressive business strategy.
ONGC outlines its future plans to focus on monetizing existing assets and acquiring new assets through development of marginal fields, facility upgrades, and partnerships. It discusses ongoing E&P activities including drilling and production operations. The presentation also provides an overview of ONGC's infrastructure, institutes, and awards as the largest national oil and gas company in India.
BPCL is considered a leader in
Marketing and has been a pioneer of
many initiatives in India’s oil sector.
Customers’ evolving aspirations are
constantly mapped and a sustained
effort is made to fulfill them by
providing added value. Over time,
many non-fuel products and services
have also been made available at BPCL
outlets, to provide convenience.
This document provides an overview of Indian Oil Corporation Limited (IOCL) and discusses the objective of selecting pumps for their cross-country pipeline system. IOCL is India's largest oil and gas company, with a large refining capacity and extensive retail network. The document discusses the types of pumps used in oil industries, focusing on centrifugal pumps. It explains that the objective is to understand IOCL's pump selection process by examining key pump characteristics like pressure, velocity and head, and how these are used to create characteristic curves and select pumps to keep costs low and efficiency high.
PTT Philippines Corporation is a subsidiary of Petroleum Authority of Thailand that markets refined petroleum products and lubricants in the retail, wholesale, and commercial markets in the Philippines. The document outlines a 10 step marketing plan for PTT's gasoline products that includes identifying target markets, customer needs, competition, pricing strategies, and distribution channels. The plan recommends strengthening advertising through celebrity endorsements and sponsoring events to increase brand awareness and market presence as PTT is a new player compared to established competitors like Petron, Shell, and Caltex.
ONGC is an Indian state-owned oil and gas company that produces around 77% of India's crude oil and 81% of its natural gas. It has significant infrastructure including over 15,000 km of pipelines. ONGC focuses on exploring for and producing oil and gas both domestically and through international subsidiaries. It aims to increase oil and gas production capacity to meet India's growing demand and reduce reliance on imports.
This document provides an introduction and overview of National Fertilizers Limited (NFL), an Indian fertilizer company. It discusses NFL's history, facilities and locations, products, marketing operations, corporate objectives, and certification. Some key points:
1) NFL was established in 1974 and has fertilizer plants located across India, with a total installed capacity of 32.31 lakh MT of urea. It produces urea and other chemicals.
2) In addition to urea, NFL manufactures neem-coated urea and bio-fertilizers. It has a nationwide marketing network and focuses on farmer services.
3) NFL's corporate objectives are to achieve high productivity and profitability through
World Class Benchmarking: Petron Corporation is the largest oil refining company in the Philippines, and also a leader in the downstream oil industry.
Learn more at: http://becomeabetterinvestor.net/blog/petron-corporation/
Larry E. Greiner's model of organizational evolution and revolution describes how organizations progress through five phases of growth, each ending in a management crisis. OGDCL (Oil and Gas Development Company Limited) is Pakistan's leading exploration and production company. Formed in 1961, it has grown from exploring and developing Pakistan's oil and gas reserves to pursuing international opportunities. OGDCL aims to increase production and reserves through exploration, projects development, and pursuing strategic alliances both domestically and abroad while implementing best practices. It has achieved significant growth through building expertise, infrastructure, and pursuing an aggressive business strategy.
ONGC outlines its future plans to focus on monetizing existing assets and acquiring new assets through development of marginal fields, facility upgrades, and partnerships. It discusses ongoing E&P activities including drilling and production operations. The presentation also provides an overview of ONGC's infrastructure, institutes, and awards as the largest national oil and gas company in India.
BPCL is considered a leader in
Marketing and has been a pioneer of
many initiatives in India’s oil sector.
Customers’ evolving aspirations are
constantly mapped and a sustained
effort is made to fulfill them by
providing added value. Over time,
many non-fuel products and services
have also been made available at BPCL
outlets, to provide convenience.
I am student of MBA (Supply chain management) at Bahria University Pakistan. I and my friend made this report on the supply chain management of Shell Oil. Kindly like and if anyone want this report than kindly email me on usama.geo@hotmail.com.
Regards,
Osama Bin Raees
Dolphin Energy reports zero supply interruptions and 100% plant availability in 2013. It achieved environmental targets such as 20% reduction in flaring and 4% reduction in greenhouse gas emissions. Oman Oil Refineries begins work expanding Sohar refinery's capacity by 82,000 barrels per day. Gazprom Neft begins production at the Badra oil field in Iraq, with commercial production expected to begin after testing is completed in 3 months. Seadrill secures a 5-year contract from Total for its newbuild drillship West Jupiter to work on the EGINA project offshore Nigeria. Faroe Petroleum announces spudding of the Butch South West exploration well in the Norwegian North Sea.
Indian Oil Corporation Ltd. (IOCL) was incorporated in 1959 through the merger of two companies, Indian Refineries Ltd. and Indian Oil Company Ltd. It is now India's largest commercial enterprise, owned 58.57% by the Government of India. IOCL operates 10 refineries in India and has a strong brand and distribution network. It aims to ensure steady supply of petroleum products across India, enhance energy security, and earn a reasonable return on investment. Key products include petrol, diesel, liquefied petroleum gas, and lubricants. The document discusses IOCL's history, owners, objectives, products, impacts of business environment, SWOT analysis, and suggestions.
Indian Oil Corporation Ltd is India's largest commercial oil and gas company. It has a history dating back to 1959 and has expanded significantly over the decades through mergers and acquisitions. The company's core business includes refining, marketing, transportation and distribution of petroleum products. It operates numerous refineries and has subsidiaries involved in petrochemicals and other energy sectors. Indian Oil also engages in corporate social responsibility initiatives focused on education, healthcare and community development.
ONGC is India's largest oil and gas exploration and production company. It aims to make India self-reliant in petroleum through domestic exploration. The document analyzes ONGC's leverage ratios over 5 years, finding operating and financial leverage peaked in 2013-14 when sales were highest. Going forward, ONGC plans $34 billion in investments to boost output as leverage has declined recently. Maintaining high leverage is important for profits and access to financing.
Report on Pakistan State Oil with Financial Analysis 2013/2014Fahad Ur Rehman Khan
Pakistan State Oil has seen growth in recent years according to a financial analysis of the company. The company's market share increased in key product groups like HSD and lubricants. Liquidity ratios like cash to current liabilities and current ratios improved between 2013-2014, showing greater ability to pay short-term obligations. Profitability also increased as seen in higher gross profit, net profit, and return on equity ratios. While inventory turnover and fixed asset turnover ratios increased, suggesting more efficient use of assets. Overall the analysis finds Pakistan State Oil has been growing financially in recent years.
This document brings together a set
of latest data points and publicly
available information relevant for
Travel & Transportation Industry. We
are very excited to share this content
and believe that readers will benefit
from this periodic publication
immensely.
The best stock broker and share broker in India, Rudra Shares & Stock Brokers Ltd. is member of all the leading Equity & commodity exchanges in india, dealing in stocks, shares, commodity & currency serving clientele in 18 states through 175 business partners.
ONGC is an Indian state-owned oil and gas company headquartered in Dehradun, India. It was established in 1956 by the government of India to explore and produce oil and gas in India. ONGC operates both onshore and offshore oil/gas rigs and has international operations through its subsidiary ONGC Videsh. It is ranked as one of the largest national oil companies in the world. ONGC aims to be a global leader in integrated energy and retain its dominant position in India's energy sector through sustainable growth.
Pakistan State Oil (PSO) is Pakistan's largest oil marketing company. It was formed in 1976 through the merger of two state-owned oil companies. PSO directly impacts the lives of 2.5 million people daily by supplying petroleum products. Beyond its core business, PSO is committed to corporate social responsibility through initiatives in areas like education, the environment, and community development. PSO aims to be an innovative and dynamic energy company through excellence, cohesiveness, respect, integrity, and corporate responsibility. Its mission is to operate with a highly skilled workforce, low costs, sustained earnings growth, and ethical practices.
The document is a project report analyzing India's oil and natural gas sector, with a focus on Oil and Natural Gas Corporation (ONGC). It provides an overview of ONGC, describing its operations, financial performance, and global ranking. It also analyzes industry trends in production, consumption, and policy. A SWOT analysis identifies ONGC's strengths, weaknesses, opportunities, and threats. The report examines ONGC's financial ratios and future projects. It compares ONGC's performance to Reliance Industries and evaluates ONGC's stock chart patterns.
To Madam Ayesha...Financial Analysis of PSOSam Royale
This is the financial analysis with all financial ratios calculated. I feel very sorry to say that my project was considered copy paste.Although it was a damn 1 day work out.
The Shell LNG Terminal in Hazira, Gujarat receives liquefied natural gas from international markets via ships at its jetty. The LNG is stored in insulated tanks at -160°C and then regasified by passing it through heat exchangers. The natural gas is then distributed through pipelines across North, West, Central and South India. The terminal was India's first to introduce spot LNG supplies and can receive large LNG ships. It has cryogenic storage tanks with a total capacity of 320,000 cubic meters.
This document provides an analysis report on Oil and Natural Gas Corporation Limited (ONGC). It includes sections on the company introduction, brief history, planning, organizing, leading, controlling, opportunities, and bibliography. Some key points:
- ONGC is India's largest oil and gas company, producing ~30% of India's oil and ~50% of its natural gas. It was established in 1956 and is majority owned by the Indian government.
- The company has grown significantly over 50+ years of operations to become one of the largest oil and gas producers in Asia. It has over 11,000 km of pipelines in India and international subsidiaries operating in 15 countries.
- ONGC has a hierarchical
This is a very brief PPT which gives an insight into the various issues that ONGC india was facing @ 2001 , the time when mr subir raha joined the company , and the various impetus as given by Mr raha which saw Ongc grow. It also looks into the various factors which led to Mr raha's dispute with the GOI.
Oman is considering reducing or eliminating fuel subsidies, especially for gasoline and diesel, which constitute over half of the country's total subsidy budget. The Omani government spends over $2 billion per year on fuel subsidies, up from $1.92 billion in 2014, which is not sustainable long-term. Options being considered include a phased removal of subsidies, gradual price increases over several years, or removing subsidies for higher-income individuals who can afford market prices. Meanwhile, Oman Oil Refineries and Petroleum Industries Company (Orpic) plans to invest $7 billion in three major projects - upgrading an existing refinery, building a new product pipeline, and constructing a new petrochemicals plant - to expand
The Qatar Exchange Index gained 3.10% during the trading week to close at 11,872.40 points. Trading value increased 49.53% to reach QR4.14 billion, while trading volume rose 26.48% to 89.1 million shares. Regional indices were mixed, with Qatar, Dubai, Bahrain and Saudi Arabia gaining while Kuwait, Oman and Abu Dhabi fell. Mesaieed Petrochemical Holding Company will debut on the Qatar Exchange on February 26th, increasing the number of listed companies to 43. Al Meera Consumer Goods reported a 170.8% rise in 4Q2013 net profit.
Organizational redesign at Bharat Petroleum Corporation LimitedVaibhav Vyas
The document summarizes the organizational redesign at BPCL (Bharat Petroleum Corporation Limited), an Indian state-owned oil and gas company, to prepare it for privatization. Key points:
- BPCL underwent two phases of redesign between 1998-2003 to shift from a functional to divisional structure with six strategic business units and a stronger customer focus. Consultants helped facilitate the process.
- The redesign involved changing BPCL's vision, strengthening its sales force without additional hiring, introducing competency mapping and job rotation, and focusing on performance management and rewards.
- The effects of the redesign were increased profits, improved market share for BPCL compared to competitors, and preparedness of
Currently the stock is trading at a P/E multiple of 13.9x & EV/ EBITDA of 6.8x FY16E earnings and P/BV of 2.8x FY16E BV. Investors are recommended to buy the stock for a price target of Rs319, implying an upside of 30% from the current levels.
Bharat Petroleum Corporation Ltd. (BPCL) is an Indian state-owned oil and gas company. It was established in 1976 after the Indian government acquired Burmah Shell. BPCL operates several oil refineries in India and has subsidiaries involved in oil exploration and natural gas distribution. The company's vision is to be the most admired global energy company and the first choice for customers. It aims to meet India's growing energy needs while pursuing economic growth and global competitiveness in the energy sector.
I am student of MBA (Supply chain management) at Bahria University Pakistan. I and my friend made this report on the supply chain management of Shell Oil. Kindly like and if anyone want this report than kindly email me on usama.geo@hotmail.com.
Regards,
Osama Bin Raees
Dolphin Energy reports zero supply interruptions and 100% plant availability in 2013. It achieved environmental targets such as 20% reduction in flaring and 4% reduction in greenhouse gas emissions. Oman Oil Refineries begins work expanding Sohar refinery's capacity by 82,000 barrels per day. Gazprom Neft begins production at the Badra oil field in Iraq, with commercial production expected to begin after testing is completed in 3 months. Seadrill secures a 5-year contract from Total for its newbuild drillship West Jupiter to work on the EGINA project offshore Nigeria. Faroe Petroleum announces spudding of the Butch South West exploration well in the Norwegian North Sea.
Indian Oil Corporation Ltd. (IOCL) was incorporated in 1959 through the merger of two companies, Indian Refineries Ltd. and Indian Oil Company Ltd. It is now India's largest commercial enterprise, owned 58.57% by the Government of India. IOCL operates 10 refineries in India and has a strong brand and distribution network. It aims to ensure steady supply of petroleum products across India, enhance energy security, and earn a reasonable return on investment. Key products include petrol, diesel, liquefied petroleum gas, and lubricants. The document discusses IOCL's history, owners, objectives, products, impacts of business environment, SWOT analysis, and suggestions.
Indian Oil Corporation Ltd is India's largest commercial oil and gas company. It has a history dating back to 1959 and has expanded significantly over the decades through mergers and acquisitions. The company's core business includes refining, marketing, transportation and distribution of petroleum products. It operates numerous refineries and has subsidiaries involved in petrochemicals and other energy sectors. Indian Oil also engages in corporate social responsibility initiatives focused on education, healthcare and community development.
ONGC is India's largest oil and gas exploration and production company. It aims to make India self-reliant in petroleum through domestic exploration. The document analyzes ONGC's leverage ratios over 5 years, finding operating and financial leverage peaked in 2013-14 when sales were highest. Going forward, ONGC plans $34 billion in investments to boost output as leverage has declined recently. Maintaining high leverage is important for profits and access to financing.
Report on Pakistan State Oil with Financial Analysis 2013/2014Fahad Ur Rehman Khan
Pakistan State Oil has seen growth in recent years according to a financial analysis of the company. The company's market share increased in key product groups like HSD and lubricants. Liquidity ratios like cash to current liabilities and current ratios improved between 2013-2014, showing greater ability to pay short-term obligations. Profitability also increased as seen in higher gross profit, net profit, and return on equity ratios. While inventory turnover and fixed asset turnover ratios increased, suggesting more efficient use of assets. Overall the analysis finds Pakistan State Oil has been growing financially in recent years.
This document brings together a set
of latest data points and publicly
available information relevant for
Travel & Transportation Industry. We
are very excited to share this content
and believe that readers will benefit
from this periodic publication
immensely.
The best stock broker and share broker in India, Rudra Shares & Stock Brokers Ltd. is member of all the leading Equity & commodity exchanges in india, dealing in stocks, shares, commodity & currency serving clientele in 18 states through 175 business partners.
ONGC is an Indian state-owned oil and gas company headquartered in Dehradun, India. It was established in 1956 by the government of India to explore and produce oil and gas in India. ONGC operates both onshore and offshore oil/gas rigs and has international operations through its subsidiary ONGC Videsh. It is ranked as one of the largest national oil companies in the world. ONGC aims to be a global leader in integrated energy and retain its dominant position in India's energy sector through sustainable growth.
Pakistan State Oil (PSO) is Pakistan's largest oil marketing company. It was formed in 1976 through the merger of two state-owned oil companies. PSO directly impacts the lives of 2.5 million people daily by supplying petroleum products. Beyond its core business, PSO is committed to corporate social responsibility through initiatives in areas like education, the environment, and community development. PSO aims to be an innovative and dynamic energy company through excellence, cohesiveness, respect, integrity, and corporate responsibility. Its mission is to operate with a highly skilled workforce, low costs, sustained earnings growth, and ethical practices.
The document is a project report analyzing India's oil and natural gas sector, with a focus on Oil and Natural Gas Corporation (ONGC). It provides an overview of ONGC, describing its operations, financial performance, and global ranking. It also analyzes industry trends in production, consumption, and policy. A SWOT analysis identifies ONGC's strengths, weaknesses, opportunities, and threats. The report examines ONGC's financial ratios and future projects. It compares ONGC's performance to Reliance Industries and evaluates ONGC's stock chart patterns.
To Madam Ayesha...Financial Analysis of PSOSam Royale
This is the financial analysis with all financial ratios calculated. I feel very sorry to say that my project was considered copy paste.Although it was a damn 1 day work out.
The Shell LNG Terminal in Hazira, Gujarat receives liquefied natural gas from international markets via ships at its jetty. The LNG is stored in insulated tanks at -160°C and then regasified by passing it through heat exchangers. The natural gas is then distributed through pipelines across North, West, Central and South India. The terminal was India's first to introduce spot LNG supplies and can receive large LNG ships. It has cryogenic storage tanks with a total capacity of 320,000 cubic meters.
This document provides an analysis report on Oil and Natural Gas Corporation Limited (ONGC). It includes sections on the company introduction, brief history, planning, organizing, leading, controlling, opportunities, and bibliography. Some key points:
- ONGC is India's largest oil and gas company, producing ~30% of India's oil and ~50% of its natural gas. It was established in 1956 and is majority owned by the Indian government.
- The company has grown significantly over 50+ years of operations to become one of the largest oil and gas producers in Asia. It has over 11,000 km of pipelines in India and international subsidiaries operating in 15 countries.
- ONGC has a hierarchical
This is a very brief PPT which gives an insight into the various issues that ONGC india was facing @ 2001 , the time when mr subir raha joined the company , and the various impetus as given by Mr raha which saw Ongc grow. It also looks into the various factors which led to Mr raha's dispute with the GOI.
Oman is considering reducing or eliminating fuel subsidies, especially for gasoline and diesel, which constitute over half of the country's total subsidy budget. The Omani government spends over $2 billion per year on fuel subsidies, up from $1.92 billion in 2014, which is not sustainable long-term. Options being considered include a phased removal of subsidies, gradual price increases over several years, or removing subsidies for higher-income individuals who can afford market prices. Meanwhile, Oman Oil Refineries and Petroleum Industries Company (Orpic) plans to invest $7 billion in three major projects - upgrading an existing refinery, building a new product pipeline, and constructing a new petrochemicals plant - to expand
The Qatar Exchange Index gained 3.10% during the trading week to close at 11,872.40 points. Trading value increased 49.53% to reach QR4.14 billion, while trading volume rose 26.48% to 89.1 million shares. Regional indices were mixed, with Qatar, Dubai, Bahrain and Saudi Arabia gaining while Kuwait, Oman and Abu Dhabi fell. Mesaieed Petrochemical Holding Company will debut on the Qatar Exchange on February 26th, increasing the number of listed companies to 43. Al Meera Consumer Goods reported a 170.8% rise in 4Q2013 net profit.
Organizational redesign at Bharat Petroleum Corporation LimitedVaibhav Vyas
The document summarizes the organizational redesign at BPCL (Bharat Petroleum Corporation Limited), an Indian state-owned oil and gas company, to prepare it for privatization. Key points:
- BPCL underwent two phases of redesign between 1998-2003 to shift from a functional to divisional structure with six strategic business units and a stronger customer focus. Consultants helped facilitate the process.
- The redesign involved changing BPCL's vision, strengthening its sales force without additional hiring, introducing competency mapping and job rotation, and focusing on performance management and rewards.
- The effects of the redesign were increased profits, improved market share for BPCL compared to competitors, and preparedness of
Currently the stock is trading at a P/E multiple of 13.9x & EV/ EBITDA of 6.8x FY16E earnings and P/BV of 2.8x FY16E BV. Investors are recommended to buy the stock for a price target of Rs319, implying an upside of 30% from the current levels.
Bharat Petroleum Corporation Ltd. (BPCL) is an Indian state-owned oil and gas company. It was established in 1976 after the Indian government acquired Burmah Shell. BPCL operates several oil refineries in India and has subsidiaries involved in oil exploration and natural gas distribution. The company's vision is to be the most admired global energy company and the first choice for customers. It aims to meet India's growing energy needs while pursuing economic growth and global competitiveness in the energy sector.
This document provides an overview of Hindustan Petroleum Corporation Limited (HPCL), an Indian state-owned oil and gas company. Some key points:
- HPCL has a 16% market share in India and owns and operates two coastal refineries in Mumbai and Vishakhapatnam.
- The company reported revenues of INR 1,294,757.90 million in fiscal year 2009, an increase of 16.53% over 2008. However, net profit decreased 44.48% from 2008.
- Competitors include other state-owned oil companies like IOCL and BPCL as well as private companies like Reliance Industries. Analysis shows RIL is a major competitor and
about : Tamin Petroleum and Petrochemical Investment Corporation (TAPPICO)Farnaz Asgare
Tamin Petroleum and Petrochemical Investment Corporation (TAPPICO) is an Iranian holding company established in 2002 that owns subsidiaries involved in oil, gas, petrochemicals, tires, and other industries. As the main shareholder, Social Security Investment Corporation owns 85% of TAPPICO. TAPPICO has grown significantly since 2002 and owns 32 subsidiaries and affiliated companies involved in oil, gas, petrochemical, tire, and cellulosic industries. TAPPICO is also one of the most diversified petrochemical companies in the world.
This document provides an objective for an internship at Indian Oil Corporation to study the company's oil and petroleum distribution processes. It discusses that centrifugal pumps are widely used in oil industries for processes like pumping crude oil. The document then outlines that the report will study the types of pumps used in India, focusing on centrifugal pumps, and discuss the main characteristics considered for pump selection like pressure, velocity and head. It will examine pump selection graphs and data sheets to understand how Indian Oil Corporation chooses pumps with low costs and high efficiency.
Summer Training Report at IOCL (chemical engineering)Gaurav Singh
This document provides information about Gaurav Singh's 4-week summer training at Indian Oil Corporation Ltd in Panipat from June 1-28, 2017. It includes an acknowledgement of those who helped facilitate the training and an outline of topics to be covered in the full training report such as information about IOCL, descriptions of various units like the Crude Distillation Unit, and the objective of the training experience.
Dai Ichi Karkaria: Buy at CMP and add on declinesIndiaNotes.com
At CMP of Rs 85, the company is trading at 6.1x its FY14 Adjusted EPS of Rs 13.9. Investors could buy the stock at the CMP and add on dips to Rs.70-76 band (~5.25 xFY14 EPS) for sequential target prices of Rs 111 and 125.
This document summarizes the initial public offering of Oil and Natural Gas Corporation (ONGC), India's largest oil and gas exploration and production company. ONGC was founded in 1956 and is headquartered in New Delhi. The IPO involved the sale of 142.6 million shares at a price between Rs. 680-750 per share to raise between Rs. 97-107 billion. Post-IPO, the Government of India's stake in ONGC would be 74.1%.
Indian Oil Corporation Ltd is India's largest commercial enterprise, with operations spanning the entire hydrocarbon value chain. It has diversified into exploration and production, pipelines, marketing, petrochemicals, and renewable energy. The company aims to ensure energy security for India through self-sufficiency in refining. Financially, it has grown steadily over the years with total income rising from Rs. 277756 crores in 2009 to Rs. 461779 crores in 2013. However, net profit margins have declined from 0.95% to 1.11% over the same period. The company plans to invest Rs. 8000 crores to expand capacity at its Koyali and Haldia refineries.
The document provides an analysis of the oil and natural gas sector in India, with a focus on Oil and Natural Gas Corporation Limited (ONGC). Some key points:
- ONGC is India's largest oil and gas exploration and production company, producing around 77% of India's crude oil and 81% of its natural gas.
- The document discusses the growth and performance of India's oil and gas industry. Demand for oil and gas is rising in India as the economy grows rapidly.
- A SWOT analysis of ONGC identifies strengths like state ownership and infrastructure, but also weaknesses such as aging reservoirs and changing government policies.
- Financial analysis shows ONGC has had strong profits and returns in
- ONGC is India's largest oil and gas company, producing crude oil and natural gas to fuel India's economic growth. In FY 2013-2014, ONGC made 14 new discoveries and increased oil and gas reserves by 84.99 MTOE, the highest in 23 years.
- ONGC maintained domestic production levels of 45.53 MTOE despite natural field declines. Total production including subsidiaries was 59.2 MTOE. ONGC aims to increase average oil recovery rates from fields to 40% by 2020 through improved recovery technologies.
- ONGC reported highest ever revenue of Rs. 842.01 billion and profit after tax of Rs. 220.95 billion for FY 2013-2014
The key Indian indices opened higher supported by strong Asian markets and quarterly results. Gains were trimmed in the afternoon but markets recovered on buying in metal, realty and auto stocks. The Sensex and Nifty ended up 0.7%.
IVRCL won its first international contracts worth $440 million in Saudi Arabia and Nepal, diversifying geographically. BGR Energy won a $490 million contract in India. Allcargo Global acquired controlling stakes in Hong Kong logistics firms, expecting to boost earnings. Market sentiment was positive supported by company results and deals.
ONGC is India's largest oil and gas company established in 1956 with a vision to be a world-class energy company. It has over 34,000 employees and revenue of $24 billion in 2008. To diversify risk away from its core upstream business and obsolete technology, ONGC acquired MRPL in 2002 and invested in downstream refining and retailing. It also expanded globally through acquisitions and grew production in India through new technology and financial restructuring.
RGT projects total revenues of $367 million over five years from five business ventures:
1) Operating a marine farm cultivating seaweed and selling harvests.
2) Extracting agarose from seaweed to sell agarose powders and use as an ingredient in other ventures.
3) Producing agarose-based gels and creams as intermediate agents for cosmetic companies.
4) Developing private-label cosmetic products using intermediate agents.
5) Marketing RGT-branded cosmetic products.
Total operating costs are projected at $108 million, resulting in estimated EBITDA of $259 million.
OTI is a global commodity trading company based in Dubai that was established in 2006 and is now 100% owned by the Sultanate of Oman. It has grown significantly over the past decade to trade oil, petroleum products, petrochemicals, and carbon emissions internationally through offices in several locations. OTI is establishing a petroleum coke trading desk and will begin exports of petcoke from Oman in late 2016/early 2017, initially focusing on markets in India, Egypt, and Turkey due to growing demand and proximity. Pricing for petcoke will need to be discounted based on sulfur content to be competitive with alternatives in different regions.
This document provides an investment analysis on Isgec Heavy Engineering Ltd. Key highlights include:
- The company is recommended as a buy with a fair share price estimate of Rs. 5217 based on an estimated FY16 EV/EBITDA multiple of 12x.
- The company has shown strong growth in revenues, orders, and profits recently through improved market share and export focus.
- It has entered new partnerships and projects that are expected to boost margins going forward, though some refinery projects may be delayed due to low oil prices.
- A subsidiary incurred losses but the sugar industry outlook is positive due to government support.
Oil and Gas Development Company Limited (OGDCL) is Pakistan's national oil and gas exploration and production company. It was established in 1961 and is responsible for developing Pakistan's oil and gas reserves. OGDCL has over 100 oil and gas field discoveries, and is the largest exploration company in Pakistan in terms of reserves, production, and acreage. It plays a key role in meeting Pakistan's energy needs and employs over 11,000 professionals.
Rudra Shares Fundamental Call Report- Bodal chemicals ltdAnkurShah108
Volume growth in key products such as SPS, Trion and Thionol Chloride will drive growth for Bodal Chemicals over the next 2-3 years. However, turbulence in China could impact realized growth and put pressure on margins. Significant negative surprises in free cash flow could also put the company's balance sheet at risk given its large recent capital expenditures. The company is pursuing capacity expansions, business integration, new product lines, inorganic growth, and geographical expansion to transform into a fully integrated global dyestuff company.
This document discusses plans for increasing Indonesia's refinery capacity through international investment. It notes that global oil demand is projected to increase significantly by 2035, with demand shifting from OPEC countries to Asia. Currently, Indonesia's refinery capacity is much lower than other Asian countries on a per capita basis. The document outlines roadmaps and business models for developing new private refineries in Indonesia to meet the projected demand and reduce reliance on imports. It summarizes an example project for a new 150,000 barrel per day refinery in Situbondo, East Java, which would require $5 billion in investment and have an estimated internal rate of return of 12.96-15.09% depending on oil prices. Government
Similar to Buy Indian Oil Corporation for a target of Rs405 (20)
The document summarizes financial information for GlaxoSmithKline Consumer Healthcare Ltd for quarters ending June 2015 and September 2015E. Key highlights include:
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In a tight labour market, job-seekers gain bargaining power and leverage it into greater job quality—at least, that’s the conventional wisdom.
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Discover the Future of Dogecoin with Our Comprehensive Guidance36 Crypto
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Vicinity Jobs’ data includes more than three million 2023 OJPs and thousands of skills. Most skills appear in less than 0.02% of job postings, so most postings rely on a small subset of commonly used terms, like teamwork.
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1. Achiievers Equities Ltd
Y/E Mar FY13A FY14A FY15E FY16E
Revenue (`bn) 4,617.8 4,883.4 5,323.0 5,961.7
Net Profit (`bn) 44.5 70.9 98.7 139.4
Share Capital
(`bn)
24.3 24.3 24.3 24.3
EPS (`) 18.3 29.2 40.7 57.4
PE (x) 18.4 11.6 8.3 5.9
P/BV (x) 1.3 1.2 1.1 1.0
EV/EBIDTA(x) 7.7 6.8 5.3 4.1
RoCE (%) 10.8 11.3 13.1 16.0
RoE (%) 7.1 10.4 13.4 17.2
During FY14, Indian Oil Corporation (IOC) witnessed 59% YoY
rise in net profit to `70.9 bn on account of budgetary support of
`371.8 bn in FY14 and a discount of `346.7 bn. The
improvement in refining margins could create value for
shareholders, going forward. Thus, we believe that with an
enhanced & intense focus on efficiency improvement and cost
optimization, coupled with a country wide reach of its refining
and marketing network, IOC is expected to post 13.1% and
20.3% growth in bottom-line in FY15E and FY16E, respectively.
The continuous diesel price hikes by 50 paise/month to bring
down the diesel under-recovery will improve the working capital
scenario of the company and is expected to result in a reduction
in interest cost from `59.1 bn in FY14 to `39.7 bn in FY16E. We
believe that diesel prices are likely to be completely deregulated
over the next 12 months. We expect that IOC is well placed to
benefit from diesel deregulation reform, which in turn would
lead to higher earnings visibility.
IOC’s new refinery at Paradip, with a refining capacity of 15
million metric tonnes per annum (mmtpa), is expected to be
commissioned by H2FY15E, which in turn would lead to higher
earnings performance. Initially, the refinery is expected to run at
60% capacity and the company is expected to reach the 100%
capacity by FY16.
-Achiievers Research-
Indian Oil Corporation Ltd
Investment RationaleBUY
Stock Details
Mkt. Cap (` bn) 820.6
Enterprise Value (` bn) 1,153.9
52 week H/L (`) 385.0/186
Decline from 52 WH (%) 12.2
Rise from 52 WL (%) 81.7
Beta 1.8
3 months avg. Volume (Lakh) 1.3
Bloomberg IOC:IN
Reuters IOC.BO
BSE Code 530965
NSE Code IOC
50
100
150
200
Jul-13
Aug-13
Sep-13
Oct-13
Nov-13
Dec-13
Jan-14
Feb-14
Mar-14
Apr-14
May-14
Jun-14
Jul-14
Nifty IOC
1 yr Price Chart of Stock and Nifty
Shareholding Pattern
Particular 14-Jun 14-Mar Var 13-Dec Var
Promoters 68.57 68.57 0 78.92 (10.35)
DIIs 4.58 4.79 (0.21) 4.41 0.17
FIIs 2.41 2.18 0.23 2.13 0.28
Public & Others 24.44 24.46 (0.02) 14.54 9.9
1 Yr Stock with Nifty
Y/e (Mar) 1M 3M 6M 12M
IOC 0.9 28.9 59.5 50.8
NIFTY 1.2 14.2 20.7 26.9
16th
July 2014
CMP TP SL Return Duration
338 405 305 ~20% 12 months
2. Achiievers Equities Ltd
Equity Research Report
IOC, the largest refining and marketing company in India
IOC is the largest refining and marketing company in India, with business interests
straddling the entire hydrocarbon value chain – from refining, pipeline transportation
and marketing of petroleum products to exploration & production of crude oil & gas,
marketing of natural gas and petrochemicals. It operates 8 refineries (incl BRPL) with a
capacity of 65.7 million metric tonnes per annum (mmtpa) and has a 52% stake in
Chennai Petroleum Corporation Ltd. (CPCL) (11.5 mmtpa refining capacity). The company
has a pipeline network of more than 11,214 km (77.3 mmtpa capacity). In addition, the
company has 23,993 petrol/diesel outlets and has interests in petrochemicals and
upstream oil and gas. IOC is a Public Sector Company with 78.9% Government stake.
At IOC, operations are strategically structured along business verticals - Refineries,
Pipelines, Marketing, R&D Centre and Business Development – E&P, Petrochemicals and
Natural Gas. To achieve the next level of growth, IOC is currently forging ahead on a well
laid-out road map through vertical integration— upstream into oil exploration &
production (E&P) and downstream into petrochemicals and diversification into natural
gas marketing and alternative energy, besides globalisation of its downstream
operations. Having set up subsidiaries in Sri Lanka, Mauritius and the United Arab
Emirates (UAE), IOC is simultaneously scouting for new business opportunities in the
energy markets of Asia and Africa.
IOC is the leader in refining with a capacity utilization of 98% in FY14. IOC achieved a
crude throughput of 53.13 mmtpa during FY14 from its refineries segment. The
combined distillate yield of all refineries of the company during the year remained at
78.1%. For the first time in FY14, the company has processed 9 new crudes (including
high TAN crudes). 26 new crudes were included in the Trial crude basket after evaluation
for suitability to all refineries.
IOC along with its subsidiary
(CPCL) account for over 49%
petroleum products market
share, 31% national refining
capacity and 71% downstream
sector pipelines capacity in
India.
IOC; the largest refiner with capacity of 65.7 MMTPA (31% in percentage terms)
31%
28%
11%
14%
9%
7%
0%
5%
10%
15%
20%
25%
30%
35%
IOC Reliance HPCL BPCL Essar Oil ONGC
Industry Capacity – 215 MMTPA
3. Achiievers Equities Ltd
Equity Research Report
Petrochemical and E&P business to boost operational efficiency
IOC strengthened its market presence in the petrochemical segment in FY14 and
emerged as the second largest petrochemicals player in the country. The company has
recorded highest ever petrochemicals sales of 2.114 mmtpa in FY14 against 2.072 mmtpa
during FY13. During FY14, the product basket of the company increased to 36 polymers
and obtained 9 OEM approvals for polymer products.
IOC is also having significant presence in the exploration & production (E&P) business
with participating interest in 13 domestic and 11 overseas blocks. Out of 13 domestic
blocks, IOC is the operator with 100% participating interest (PI) in 2 onshore exploration
blocks in Cambay basin. In the remaining 11 domestic blocks, IOC holds a non-operating
participating interest ranging between 20% and 30%. IOC’s integrated business
operations in place will allow the company to stay competitive in the complete
deregulated scenario. Therefore, we believe that the company’s investment in
Petrochemicals and E&P business is likely to enhance operational efficiency. In order to
maintain its market leadership, IOC is currently investing `470 bn in a host of projects for
augmentation of refining and pipelines capacities, expansion of marketing infrastructure
and product quality upgradation.
Well positioned to take advantage of largest pipeline network
IOC has the largest crude and product pipeline in the country, with a market share of 57%
and a pipeline network of more than 11,214 km. The pipeline division of the company has
transported 73.08 mmtpa of crude oil and finished products in FY14. At present, IOC’s 13
pipeline projects are under implementation at an approved cost of about `70 bn. Upon
completion, these projects would result in additional length of over 3,200 km and added
capacity of about 15.5 mmtpa. With a focus on transporting heavier crudes, IOC has
augmented its Salaya-Mathura pipeline and Paradip-Haldia-Barauni pipeline to 25 mmtpa
and 15.2 mmtpa from 21 mmtpa and 11 mmtpa, respectively.
Further, the company is more focused towards cost optimization. LPG transportation is an
area, where substantial expansion in the pipeline network is required to bring cost
efficiency. The company is eyeing diversification of its gas pipeline business. Presently,
IOC’s Paradip-Haldia-Durgapur and Ennore-Trichy-Madurai LPG pipeline projects are
under implementation. Natural gas pipelines are increasingly emerging as a new
opportunity for the company. At present, the gas pipeline’s capacity of the company
stood at 9.5 mmscmd in FY14, with a pipeline length of 134 km. Having built its
stronghold in the petroleum pipelines, IOC is aiming to establish a significant position in
the national natural gas grid. IOC in association with GSPL, BPCL and HPCL, is setting up
three gas pipelines from West and East to North.
In order to maintain its market
leadership, IOC is currently
investing `470 bn in a host of
projects for augmentation of
refining and pipelines capacities,
expansion of marketing
infrastructure and product
quality upgradation.
4. Achiievers Equities Ltd
Equity Research Report
Robust capex plan
IOC has a robust capital expenditure (capex) plan and has earmarked a capex of `562 bn for
the XII plan (FY13-FY17), a growth of ~16%, envisages to under-take projects across the
energy value chain. Till March 2014, the company has invested `260.4 bn. Further, the
company plans to invest `120 bn in FY15E. The currently under implementation of 15
mmtpa refinery at Paradip has reached an advanced stage of completion. In addition, a
number of other major projects such as Paradip-Raipur-Ranchi product pipeline,
augmentation of Paradip-Haldia-Barauni pipeline, Paradip-Haldia-Durgapur pipeline, new
marketing terminal at Paradip, LPG facilities at Paradip, debottlenecking of Salaya-Mathura
Pipeline and FCC revamp at Mathura are at various stages of implementation. Thus, we
believe that the company’s capex plan is expected to boost business growth in future.
Commissioning of Paradip refinery to further fortify its position in
the crude oil segment
IOC's Paradip refinery is in advanced stage of implementation. The construction of oil
refinery at Paradip by IOC is expected to complete by H2FY15E, the complete benefit from
Paradip refinery will get reflected in FY16E numbers. The project will help in partially
meeting the deficit in distillates viz. LPG, Naphtha, MS, Jet/Kero, Diesel and other products,
in the eastern part of the country. The complex will generate intermediate petrochemicals
feedstock. Apart from having a Crude and Vacuum Distillation Unit, the Paradip refinery will
also house a Hydrocracking Unit, a Delayed Coker Unit and other secondary processing
facilities. Earlier, the company had set March 2014 as its deadline for commissioning of the
project. But, due to various hurdles, the refinery work has been delayed. Also, due to
currency fluctuations, the project cost had escalated to `327.1 bn from `290 bn estimated
originally. The refinery project holds the key to the development of the PCPIR (petroleum,
chemicals & petrochemicals investment region) hub planned across 284 sq. km in
Kendrapara and Jagatsinghpur districts of Odisha. As on March 2014, 96.1% overall Physical
Progress and 94.0% overall construction progress has been achieved.
IOC’s Paradip refinery with a
refining capacity of 15 mmtpa is
expected to be commissioned by
H2FY15E and thus improves the
earnings visibility of the
company.
Largest crude oil pipeline market share Product pipeline market share
IOC,
73%
others,
27%
IOC,
46%
others,
54%
IOC is focused towards
expansion and has earmarked
huge capex plan that will boost
business growth in future.
5. Achiievers Equities Ltd
Equity Research Report
Continues to focus on strengthening the position in retail
segment
IOC continued to maintain its position as the market leader in FY14, with domestic sales of
70.0 mmtpa petroleum products. To keep pace with the high growth in the retail business,
the company has commissioned over 1,700 retail outlets (including over 750 KSKs) during
the year, raising their total number to over 23,993. Due to high growth potential, the
company continued to strengthen its rural positioning as compared to its peers in the
form of the Kisan Seva Kendras (KSK). The total number of KSKs surpassed the 6000 mark.
Further, with the company's continued thrust towards sustaining its leadership position in
the retail segment, it is focusing on high growth potential areas like rural & highways
coupled with modernization, networking and automation of retail outlets. The company is
eyeing automation of 10,000 ROs by 2015-16 and 100% coverage by 2021-22.
Strong FY14 earnings performance
IOC posted 59% YoY increase in its consolidated net profit at `70.9 bn in FY14 owing to
17% decrease in interest expenses. Interest cost declined as the company issued a foreign
currency bond at a low cost of debt and utilization of cash compensation from the
government used as a repayment of working capital loan. IOC reported 5.8% YoY revenue
growth at `4,883.4 bn in FY14 from `4,617.8 bn in FY13, mainly due to higher realization.
Realizations were higher on the back of diesel price hikes implemented over the past 12
months. The gross refining margins during FY14 rose to US$ 4.24 per bbl as compared to
US$ 3.16 per bbl in FY13.
Government’s compensation for the full year is decided only at the end of the year. In
FY'14, budgetary support from government fell 30% to `371.8 bn and discounts from
upstream companies rose 8% to `347.6 bn compared to FY'13.
35%
34%
31%
51%
23%
26%
50%
24%
26%
0%
10%
20%
30%
40%
50%
60%
IOC BPCL HPCL
Urban Rural Highway
Focused on strengthening the
position in retail and is eyeing
automation of 10,000 ROs by
2015-16 and 100% coverage by
2021-22.
Segment wise retail outlet (RO) share
While lower interest costs
stirred solid net profit growth
of 59% YoY in FY14, continued
diesel price hike boosted
realisations in FY14.
6. Achiievers Equities Ltd
Equity Research Report
40
60
80
100
120
140
160
180
200
220
Jul-13
Aug-13
Sep-13
Oct-13
Nov-13
Dec-13
Jan-14
Feb-14
Mar-14
Apr-14
May-14
Jun-14
Jul-14
IOC BPCL HPCL
P/E P/BVPS
Dividend Yield
(%)
IOC 11.6 1.2 0.0
BPCL 10.9 2.1 0.0
HPCL 12.7 1.0 0.0
Relative Valuation Relative Price Chart
In terms of operational performance, the domestic sales volumes declined marginally
by 1.9% YoY to 71.1 mmtpa owing to 4.7% YoY decline in diesel sales and steep fall in
FO/LSHS sales to 2.7 mmtpa. However, the 8% YoY increase in gasoline volumes and
5.5% YoY rise in LPG sales helped offset the impact.
Overall, IOC sold 75.531 mmtpa of products during FY14, including exports of 4.384
mmtpa, down by 1%. Refining throughput of the company was 53.13 mmtpa down by
3% and the throughput of the company's countrywide pipeline network was down 3%
at 73.609 mmtpa as compared to the corresponding quarter of the previous year.
Rising crude oil prices & rupee depreciation - a major
concern
Due to geopolitical tension in the Middle East and recent on-going unrest in Iraq
caused by the seizure of major cities in the country by the militant group Islamic State
of Iraq and Syria (ISIS), there has been a significant increase in International Oil prices.
This has led the Brent crude oil price to surpass the US$115 mark on June 19, 2014,
though the price is now hovering around US$107 mark in mid July 2014. India imports
close to 2 million barrels/day of crude oil, so a rise in prices will lead to a higher import
bill. India’s state-owned oil marketing companies sustain huge losses on the sale of
retail fuels such as diesel, petrol, LPG and kerosene. A higher oil price will mean
increased losses and a bigger subsidy bill for the government.
However, with de-regulation of petroleum product prices, the company’s profit is
expected to get a boost by way of better realizations and lower interest costs on the
back of lower under-recovery. However, a sharp depreciation of the rupee against the
dollar offset the positive impact of the diesel price hike. Assuming, the Brent crude at
US$110 per barrel and exchange rate of `60 per US$, we expect IOC to incur under-
recovery of `565.5 bn in FY15E. With the continuous diesel price hike, we expect the
working capital scenario of the company will improve, leading to a reduction in interest
cost from `59.1 bn in FY14 to `39.7 bn in FY16E.
Higher crude oil prices and
rupee depreciation will offset
the positive impact of the
diesel hike and will enlarge
the under-recovery basket.
7. Achiievers Equities Ltd
Equity Research Report
(`bn) FY13A FY14A FY15E FY16E
Net sales 4,617.8 4,883.4 5,323.0 5,961.7
Expenses 4,479.8 4,712.9 5,110.0 5,693.4
EBITDA 138.0 170.6 212.9 268.3
Other Income 35.1 34.4 30.3 30.9
Depreciation 56.9 63.6 71.2 79.8
EBIT 116.2 141.4 172.0 219.4
Interest 71.2 59.1 48.4 39.7
Exceptional Item 0.0 17.5 19.2 21.1
Profit before tax 45.0 99.8 142.7 200.8
Tax 8.8 30.1 42.8 60.2
Minority Int (8.2) (1.2) (1.2) (1.2)
Net Profit 44.5 70.9 98.7 139.4
(`bn) FY13A FY14A FY15E FY16E
Share Capital 24.3 24.3 24.3 24.3
Reserve and surplus 606.1 654.9 713.1 785.2
Net Worth 630.4 679.1 737.4 809.5
Minority Interest 12.6 11.7 11.7 11.7
Loans 247.9 358.7 330.0 303.6
Long-term provisions 4.2 4.4 4.4 4.4
Other Liabilities 114.5 136.9 158.3 177.2
Deferred tax Liability 63.3 64.2 66.2 68.1
Current Liability 1,344.3 1,411.4 1,538.4 1,676.9
Total Equity &Liabilities 2,417.2 2,666.4 2,846.4 3,051.4
Goodwill 0.9 0.9 0.9 0.9
Fixed assets 939.3 1,105.3 1,140.1 1,185.7
Investments 36.9 85.7 88.2 90.9
Loans & adv 53.5 49.4 49.4 49.4
Other assets 12.8 13.5 14.9 16.4
Current Assets 1,373.8 1,411.7 1,552.8 1,708.1
Total assets 2,417.2 2,666.4 2,846.4 3,051.4
FY13A FY14A FY15E FY16E
EBITDA Margin (%) 3.0 3.5 4.0 4.5
EBIT Margin (%) 2.5 2.9 3.2 3.7
NPM (%) 1.0 1.4 1.8 2.3
ROCE (%) 10.8 11.3 13.1 16.0
ROE (%) 7.1 10.4 13.4 17.2
EPS (`) 18.3 29.2 40.7 57.4
P/E (x) 18.4 11.6 8.3 5.9
BVPS (`) 259.6 279.7 303.7 333.4
P/BVPS (x) 1.3 1.2 1.1 1.0
EV/Operating Income (x) 0.23 0.24 0.21 0.18
EV/EBITDA (x) 7.7 6.8 5.3 4.1
Valuation and view
IOC posted strong earnings growth in FY14, mainly on the
back of lower subsidy burden. We expect the company to
sustain its earnings’ growth momentum in the next two
years due to improvement in GRMs supported by the
commercialisation of Paradip refinery and the continuous
diesel price hike to lower interest burden. Going ahead, we
believe that stabilization of the currency coupled with de-
regulation of petroleum product prices is expected
resulting in an improvement of profitability for the
company to result in an improvement of profitability for
the company by way of better realizations and lower
interest costs on the back of lower under-recovery. We
continue to maintain our positive stance on OMCs on
pricing reforms. Moreover, any solution to subsidy sharing
mechanism would prove to be a big positive for the stock.
At a current market price (CMP) of `338, the stock trades
at a P/E of ~5.9x FY16E, earnings. We recommend ‘BUY’
with a target price of `405, which implies potential upside
of ~20% to the CMP from 1 year perspective.
Balance Sheet (Consolidated)
Key Ratios (Consolidated)
Profit & Loss Account (Consolidated)
8. Achiievers Equities Ltd
Equity Research Report
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offer to buy or sell or subscribe for securities or other financial instruments. The investment as mentioned and opinions expressed in this report
may not be suitable for all investors. In rendering this information, we assumed and relied upon, without independent verification, the accuracy
and completeness of all information that was publicly available to us. The information has been obtained from the sources that we believe to be
reliable as to the accura-cy or completeness. While every effort is made to ensure the accuracy and completeness of information contained,
Achiievers Equities Ltd and its affil-iates take no guarantee and assume no liability for any errors or omissions of the information. This
information is given in good faith and we make no representations or warranties, express or implied as to the accuracy or completeness of the
information. No one can use the information as the basis for any claim, demand or cause of action.
Achiievers Equities Ltd and its affiliates shall not be liable for any direct or indirect losses or damage of any kind arising from the use thereof.
Opinion expressed is our current opinion as of the date appearing in this report only and are subject to change without any notice.
Recipients of this report must make their own investment decisions, based on their own investment objectives, financial positions and needs of
the specific recipient. The recipient should independently evaluate the investment risks and should make such investigations as it deems
necessary to ar-rive at an independent evaluation of an investment in the securities of companies referred to in this document and should
consult their advisors to determine the merits and risks of such investment.
The report and information contained herein is strictly confidential and meant solely for the selected recipient and is not meant for public
distribution. This document should not be altered in any way, transmitted to, copied or distributed, in part or in whole, to any other person or to
the media or re-produced, duplicated or sold in any form.