Shares of Indian Oil Corporation Ltd (IOC) dropped by 1.56% to ₹144.73 on the NSE at 9:21 AM on October 29, 2024, after the company reported a net loss of ₹169.58 crore in Q2 FY25. The loss was attributed to lower refining margins, which impacted the company’s profitability in the quarter.
Following the disappointing results, CLSA downgraded IOC to Underperform with a target price of ₹120, implying an 18% downside from current levels. CLSA highlighted that weaker refining margins, along with higher inventory losses, have negatively impacted IOC’s performance. The brokerage also raised concerns about the challenges ahead for IOC, given the ongoing volatility in the global energy market.
The Q2 loss and downgrade reflect concerns about IOC’s near-term profitability amid fluctuating refining margins, which could weigh on investor sentiment.
Disclaimer: This article is for informational purposes only and does not constitute financial advice. Investors should perform due diligence before making investment decisions.
