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Indian Oil and NTPC are valued in different ways.
Indian Oil is valued on estimate withheld and NTPC on excess return, because the two businesses do not work the same way. Below, each is set out on its own record and its own value drivers; the two fair values sit in the full valuations.
- Valuation method: Indian Oil on estimate withheld; NTPC on excess return.
- Size: NTPC is worth about 1.6 times Indian Oil on the stock market.
- Record: NTPC has grown revenue faster: Indian Oil compounded at about 7% a year (FY2018–FY2026) and NTPC at about 10% (FY2019–FY2026).
- What to watch: gross refining margins at Indian Oil; regulated equity growth at NTPC.
| Indian Oil | NTPC | |
|---|---|---|
| Price | ₹144 | ₹319 |
| Market cap | ₹1.98L Cr | ₹3.09L Cr |
| P/E | 4.2 | 10.4 |
| P/B | 0.90 | 1.52 |
| Fair value 🔒 sign in | ₹0,000 | ₹0,000 |
| Upside 🔒 sign in | +00% | +00% |
| Valued on | Estimate withheld | Excess return |
01Two businesses
India's biggest refiner and fuel retailer
Indian Oil Corporation (IOC) is a state-owned oil company and India's largest refiner, with refineries including Panipat, Mathura, Gujarat and Paradip. It runs the country's largest network of petrol pumps and of product pipelines.
Coal, regulation and a renewable future
NTPC is India's largest power generator and is majority-owned by the Government of India. Most of its capacity is coal-fired, with gas, hydro and a fast-growing renewable portfolio held largely through NTPC Green Energy, which was listed separately in November 2024.
02The records side by side
NTPC has grown revenue faster: Indian Oil compounded at about 7% a year (FY2018–FY2026) and NTPC at about 10% (FY2019–FY2026). By revenue, Indian Oil is about 4.8 times the size of NTPC. Indian Oil kept 4.8% of revenue as net profit in FY2026; NTPC kept 14.7% of revenue as net profit in FY2026. Indian Oil reported a net loss in FY2020; NTPC was profitable in every year shown.
Full ten-year tables and charts are on each company's page: Indian Oil · NTPC.
03What each price assumes
Work backwards from each share price and you can see what buyers are taking for granted — the rate each company must sustain to justify what it costs, against what its own record supports.
04What decides each one's value
- Gross refining marginsThe difference between product prices and crude costs drives refining profit.
- Marketing marginsHow far retail prices are allowed to track costs decides fuel-retail profit.
- Regulated equity growthEvery rupee of approved capex adds to the base on which NTPC earns its allowed return.
- Plant availabilityFull fixed-cost recovery depends on keeping plants available to run.
05What could go wrong
- Government pricingRetail fuel prices can be held down when crude rises.
- Crude volatilitySharp moves in oil prices create big swings in reported profit.
- Regulatory changesA lower allowed return in a future tariff period would reduce value directly.
- Coal's long-term futureThermal plants may run less as renewables grow.
06Which is better value?
Sign in free to see which trades further below its worth
- ✓Both fair values per share — each on the method that fits the business
- ✓Every step of both workings — growth, margins and cost of capital, with sources
- ✓Bull, base and bear cases — for each company
- ✓Downloadable reports — the full write-up for each, yours to keep
08Questions people ask
Is Indian Oil or NTPC better value?
That turns on how far each share trades from its estimated fair value. Both figures, with every step of the working, are in the full valuations, free to view once you sign in. On the public numbers, Indian Oil trades at 4.2 times earnings and 0.90 times book value, and NTPC at 10.4 times earnings and 1.52 times book value — but multiples alone mislead when two businesses work differently, which is why each is valued on the method that fits it.
What is the difference between Indian Oil and NTPC?
Indian Oil Corporation (IOC) is a state-owned oil company and India's largest refiner, with refineries including Panipat, Mathura, Gujarat and Paradip. NTPC is India's largest power generator and is majority-owned by the Government of India.
Are Indian Oil and NTPC valued the same way?
No. Indian Oil is valued on estimate withheld and NTPC on excess return, because forcing one model onto both would misstate at least one of them.
What does today's price assume for Indian Oil and NTPC?
Worked backwards from the share price, Indian Oil needs about 0% growth and NTPC about 12.4% return on equity, against 2% and 14.1% in their own records.