'Add' Indian Oil Shares, Maintains Dolat Capital Post Q1 Results — Check Target Price

Super normal gross marketing margins on auto fuel is becoming "new normal" and boosting overall Ebitda. Indian Oil's implied supernormal GMM of Rs 10.8/lt on auto fuel is much higher than the long-term average hence Dolat Capital increases its assumptions to Rs 5.5/Rs 5.5 per lt for FY26E/FY27E..NDTV Profit’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer NDTV Profit’s subscribers an opportunity to expand their understanding of companies, sectors and the economy. .Dolat Capital Report.We upward revise our FY26E/FY27E EPS estimates of Indian Oil Corporatio Ltd. by 37.7%/10.4%, primarily driven by-Government approved Rs 300 billion LPG compensation to oil marketing companies, with Indian Oil expected to receive Rs 138 billion (reflecting its 46% market share) in 12 tranches (nine in FY26 and three in FY27); and Stronger than expected gross marketing margin, with assumptions raised to Rs 5.5/lt (earlier Rs 4.8/lt). However, we have cut the GRM assumption to US$6/6.25 per bbl for FY26E/FY27E on account of softer GRM and huge inventory losses in Q1 FY26.We maintain ‘Accumulate’ recommendation on the stock with revised SoTP-based target price of Rs 165/share (vs earlier Rs 154/share)..In Q1 FY26 IOCL posted headline numbers much lower than our estimated Ebitda/PAT mainly due to crude inventory loss of $4.8/bbl.Key Highlights include:Total inventory loss stood at Rs 65 billion; our calculations suggest Rs 56 billion/Rs 9 billion Refining /Marketing in Q1 FY26;Russian crude accounted for 24% of total crude processed during Q1 vs 22% in FY25. Discounts on Russian crude at $1.5/bbl compared Dubai; the utilisation of expanded refinery capacities would be very minimal in FY27E, with full ramp up in utilization likely over 24 months post mechanical completion; andpetrochemical performance continued to post Ebit loss due to weak margins. .Click on the attachment to read the full report:.JSW Cement Gets 'Neutral' Rating As Motilal Oswal Initiates Coverage.DISCLAIMERThis report is authored by an external party. NDTV Profit does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of NDTV Profit..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

'Add' Indian Oil Shares, Maintains Dolat Capital Post Q1 Results — Check Target Price

Dolat Capital maintain ‘Accumulate’ recommendation on Indian Oil and hikes target price

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