Shares of Indian Oil Corporation (IOC) traded rangebound on Thursday, December 26, with the stock dipping by 0.29% or Rs 0.4, settling at Rs 137.85 per share on the Bombay Stock Exchange (BSE). This movement occurred despite the broader Nifty Oil and Gas index showing a positive bias during the session.
The relative stability in IOC’s stock comes as the company prepares to sign a significant memorandum of understanding (MoU) with the Odisha government next month. The MoU will set the stage for the development of a major naphtha cracker project at Paradip, a key port town in Odisha. The estimated investment for this ambitious project is a substantial Rs 61,000 crore, signaling IOC’s commitment to expanding its presence and capabilities.
The signing ceremony will take place during the ‘Utkarsh Odisha – Make in Odisha 2025’ summit in January. Alongside this, IOC will also lay the foundation stone for its Rs 4,352 crore yarn project at Bhadrak. This move marks another key step in the company’s ongoing expansion efforts in the state.
Earlier this week, IOC’s Chairman met with Odisha’s Chief Minister Mohan Charan Majhi at the State Secretariat to review the progress of various ongoing and upcoming projects in Odisha. During this meeting, it was decided that IOC and the Odisha government will sign the MoU for the naphtha cracker project in January. The project has already received in-principle approval, and IOC is set to invest over Rs 61,000 crore into it.
Strong Analyst Sentiment, Positive Stock Performance
Despite the recent slight dip in IOC’s share price, market analysts remain optimistic. Trendlyne data shows that the consensus recommendation from 32 analysts is to ‘hold’ the stock, with 9 analysts issuing a ‘strong buy’ signal for the counter.
On a year-to-date basis, IOC’s stock has gained just over 6%, demonstrating steady growth. Over the past three years, the stock has delivered impressive returns, surging over 87%.
As IOC prepares for the MoU signing and the expansion of its projects in Odisha, the company’s future outlook appears promising, reflecting its robust position in the oil and gas sector. Investors and stakeholders will likely be watching closely for further developments and the potential impact of these significant investments on the company’s long-term growth trajectory.
