Operationally, it was a mix quarter as refining throughput and margins were impacted owing to unplanned shutdowns but IOCL has showcased a strong marketing performance with increase in marketing margins and expansion in market share. We are structurally positive on IOC, owing to its diversified business model and healthy FCF (Rs 356bn) over FY21-22E. Our SOTP based target price of Rs 185 (5x Jun 21E EV/e for standalone refining, pipeline, petchem and 5.5x Jun 21E EV/e marketing and Rs 28/sh from other investments). Despite an underwhelming performance in Q2, we maintain BUY on IOC with a TP of Rs 185. 2HFY20 looks rather gloomy as well given planned shutdowns wrt BS-VI upgradation. We cut our GRM and throughput est for FY20 to factor this in. However, change in IMO regulations will support GRM in FY21.