Indian stock alert

INDIA

CLOSING UPDATE: Indian Oil Corporation lifts 3.7%, led BSE PSU index higher 18 June 2018 18:17 IST

NEWS BITES - BRIC

This is an end of day Alert, produced after today's Indian market close. It concludes the BSS News Bites intra-day Alert series (summaries below).

Indian Oil Corporation, India's largest oil marketing & distribution company by market capitalisation, has lifted 3.7% to trade at Rs173.90 vs. the BSE PSU index which strengthened 19.6 points (or 0.2%) to 7,741.2. Representing a weighting of about 9.2% of the index, the stock accounted for the gain. The shares have outperformed 82% of the market in the past month. Trading volume was 1.4 times average at the end of the day. Compared with the BSE SENSEX Index which fell 73.9 points (or 0.2%) in the day, this represented a relative price increase of 3.9%.

Technical indicators complementing today's significant uptrend:

+ The positive 1.96 MACD (Moving Average Convergence Divergence) indicator suggests a bullish signal.

+ In the Indian market, the stock's relative price strength percentile is improving at 58 for 6 months, 59 for 3 months and 82 for 1 month.

Fundamental measures by comparison with the sector average [in brackets] indicate:

Undervaluation:

+ Price/Earnings of 7.6 [9.0]

+ Price/Earnings/Growth of 0.11 [0.8]

+ Price/Sales of 0.3 [0.4]

+ Price to Book of 1.6 [1.9]

+ Dividend yield of 5.8% [2.6%]

Other Bullish Signals include:

+ The company is cash rich with Cash to Market Capitalisation at 11.5%.

+ Total Liabilities/EBITDA of 4.3 is less than the Joseph Piotroski benchmark of <5.

+ Tobin's Q Ratio is 0.6. Compared with the rest of the market the stock is undervalued.

+ The Brand Value represents an impressive 9.4% of the estimated Enterprise Value of Rs2,715.8 billion (US$39.9 billion).

Note

Indian Oil Corporation today is at a discount of 21.2% to the 12-month high of Rs220.61 on 31 Aug, 2017. It is at a premium of 15.1% to the 12-month low of Rs151.10 on 24 May, 2018.

Bearish Signals:

In the last three months the stock has hit a new 52-week low ten times, pointing to a significant downtrend.

Net profit margin has averaged 3.9% in the last 3 years. This suggests the company is less profitable with a low margin of safety.

As per the Du Pont analysis, Return on Equity of 19.9% is lower than sector average of 20.1%.

Fundamental measures by comparison with the sector average [in brackets] indicate:

Overvaluation:

Year-on-Year Earnings Growth of 9.8% [11.8%]

TODAY'S ALERT

Morning Alert: Indian Oil Corporation inches higher, resistance at 12-day EMA

18 June 2018 10:16 IST

Indian Oil Corporation Ltd. (NSE:IOC) has increased 1.7% but fell short of the 12-day Exponential Moving Average [EMA] of Rs171.55.

RECENT ALERTS

CLOSING UPDATE: Indian Oil Corporation down 4.2% in 2 days

15 June 2018 18:24 IST

Indian Oil Corporation, India's largest oil marketing & distribution company by market capitalisation, extended its slide on Friday, shedding an additional Rs3.80 (or 2.2%) to trade at Rs167.75. The shares have fallen Rs7.35 (or 4.2%) over the past two trading days vs. the BSE SENSEX Index which has fallen 0.3% in the same period.

Morning Alert: Indian Oil Corporation decreases 1.3% on firm volume

15 June 2018 10:17 IST

Indian Oil Corporation Ltd. (NSE:IOC) traded on heavy volume of 1.2 times average so far today while the price decreased Rs2.25 (or 1.3%) to trade at Rs169.30.

Indian Oil Corporation Ltd. (NSE:IOC; BSE:IOC; NS:IOC; IN:IOC)

ISIN: INE242A01010

PermID: 4295872661

Source: www.BuySellSignals.com