The share price of Indian Oil Corporation (IOC) rose over 2 percent to hit a fresh 52-week high of Rs 109.90 apiece in early trade on Thursday after the company reported its March quarter earnings, beating estimates on all fronts.

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IOC’s standalone net profit in the quarter ended March 2021 rose 78.6 percent to Rs 8,781 crore from Rs 4,916.6 crore in the previous quarter.

The state-run oil marketing company posted a sequential revenue growth of 11.6 percent at Rs 1.63 lakh crore.

A CNBC-TV18 poll had estimated profit at Rs 5,741 crore on a revenue of Rs 1.2 lakh crore.

The stock, however, soon turned negative, trading 1.40 percent lower at Rs 105.70 apiece on the BSE, at 9:55 am.

IOC’s gross refining margin (GRM) in Q4 was at $12.50/bbl versus the CNBC-TV18 poll estimate of $6.50/bbl. The marketing margin stood at Rs 5.3 per litre.

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Indian Oil Corporation Q4 beats estimates; net profit jumps 78% to Rs 8,781 crore; GRM at $12.50/bbl

Morgan Stanley maintained an Overweight rating with a target price of Rs 139 per share. It is of the view that IOC’s core earnings should raise investor confidence on earnings delivery.

JPMorgan also maintained an Overweight call with a target price of Rs 147 per share. "IOC reported a large beat driven by inventory gains," JPMorgan said.

It sees a sharp improvement in the company’s underlying operating performance and is of the view that risk-reward remains attractive.

Jefferies believes marketing profitability may be restored as crude cools and retail price hikes continue. It maintained Hold rating with a target price of Rs 100 per share and cut earnings by 6 percent/5 percent for FY22/23 on ongoing lockdown.

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