Yearly outlook - Long IOC

2023년 2월 2일

Resistance @ 99, 114

Support at 60

Revise targets in April, May and August 2023-25

Pros:
1)Reduction in GRM to increase the demand.
2)Green Initialtives to be housed in existing IOC franchises.
3)Stock is trading at 0.86 times its book value
4)Stock is providing a good dividend yield of 10.7%.
5)Company is expected to give good quarter
6)S/D Gap in EV value-chain

Cons:
1)Allocation of 30T Cr of funds to state-run OMC's to the requested 50T Cr.
2)Net Profit reduction of 87% QoQ
3)The company has delivered a poor sales growth of 10.6% over past five years.
4)Company might be capitalizing the interest cost

References:
Could supply-chain issues derail the energy transition? - Mckinsley Insights, Dec 5 2022