IOC share price falls over 2% after Q1 results; Should you buy, sell or hold? Here is what brokerages have to say

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₹93.01 apiece on the BSE. IOC reported a standalone net profit of ₹13,750.44 crore in the quarter ended June 2023, rising 36.7% from ₹10,058.69 crore in the previous quarter. The company had posted a net loss of ₹1,992 crore in the same quarter last year.

IOC’s Q1FY24 revenue from operations fell 2.36% to ₹2.21 lakh crore from ₹2.26 lakh crore, QoQ. Average Gross Refining Margin (GRM) for the period April- June 2023 was $8.34 per bbl. Read here: Indian Oil Corporation Q1 Results: Net profit rises 37% to Rs13,750 crore; revenue falls 2.3% QoQ IOC Q1 results attracted mixed brokerage reactions.

Check out what various brokerages have to say on IOC Q1 results: Nomura downgraded IOC to ‘Neutral’ as IOC Q1 results were below its estimates on lower-than-expected refining margin. It has a target price of ₹105 per share. It expects oil prices to remain at elevated levels in the coming months.

The brokerage notes that based on current prices, marketing margins have already declined to below-normative levels, which would impact contribution from the segment over H2FY24. Any retail price cut can further exacerbate the situation, Nomura said. IOC’s Q1 EBITDA was below Motilal Oswal’s estimate due to weaker-than-expected GRM at and lower marketing GM.

Refining throughput came in line with our estimate at 18.8 mmt. In the marketing segment, domestic sales volumes were also in line at 23.3mmt in 1QFY24. The brokerage noted that IOCL was set to commission various projects over the next two years, driving further growth.