Rs 5,125 crore wind-solar projects: President of India & LIC-backed multibagger energy company approved implementation of 1-GW installed capacity!
The shares of the company have a PE of 6x, an ROE of 26 per cent and an ROCE of 22 per cent.
Indian Oil Corporation Limited is planning to establish a wholly-owned subsidiary (WoS) dedicated to low-carbon, new, clean, and green energy businesses, subject to necessary approvals. This initiative aligns with the company's vision for a sustainable future. The new subsidiary will be capitalized with an initial equity investment of Rs 1,304 crore. As part of this plan, IndianOil also aims to develop 1 gigawatt (GW) of renewable energy capacity across India in phases. This renewable energy push will include standalone ground-mounted solar, onshore wind, or wind-solar hybrid projects, with an estimated total cost of Rs 5,215 crore including taxes and duties.
Furthermore, IOCL is making significant strides in supporting India's shift towards electric vehicles (EVs) by installing charging stations and battery-swapping facilities at their fuel outlets. Additionally, their collaboration with Panasonic to manufacture Lithium-ion cells in India will address the growing need for EV batteries and energy storage. These efforts not only diversify Indian Oil's energy portfolio but also actively contribute to the country's green energy goals, solidifying their commitment to providing comprehensive and future-oriented energy solutions for India.
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Indian Oil Corporation Ltd is a Maharatna Company controlled by the Government of India that has business interests straddling the entire hydrocarbon value chain - from Refining, Pipeline transportation and marketing of Petroleum products to R&D, exploration & production, marketing of natural gas and petrochemicals. It has a leadership position in the oil refining & petroleum marketing sector of India.
According to its Quarterly Results, the company reported net sales of Rs 2,23,649.85 and net profit of Rs 5251.38 in Q4FY24 compared to net sales of Rs 2,30,711.56 and net profit of Rs 10,751.72 in Q4FY24. In its annual results, the company reported net sales of Rs 8,81,235.45 crore in FY24. The net profit skyrocketed by 283.8 per cent to Rs 41,615.22 in FY24 compared to FY23.
The company has a market cap of Rs 2.4 lakh crore. The shares of the company have a PE of 6x, an ROE of 26 per cent and an ROCE of 22 per cent. The stock gave multibagger returns of 110 per cent in just 1 year whereas as BSE Sensex Index up by 20 per cent in the same period. Investors should keep an eye on this Large-Cap PSU stock.
Disclaimer: The article is for informational purposes only and not investment advice.
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