Hindustan Petroleum Corporation Ltd’s fundamental analysis highlights key financial metrics, including a market capitalization of ₹85,868.28 crore, a PE ratio of 10.06, a debt-to-equity ratio of 1.42, and a return on equity (ROE) of 40.4%. These figures indicate the company’s strong financial health and efficient management of equity and debt.
Content:
- Hindustan Petroleum Corporation Ltd Overview
- Hindustan Petroleum Financial Results
- Hindustan Petroleum Corporation Ltd Financial Analysis
- Hindustan Petroleum Corporation Limited Company Metrics
- Hindustan Petroleum Corporation Ltd Stock Performance
- Hindustan Petroleum Corporation Limited Peer Comparison
- Hindustan Petroleum Shareholding Pattern
- Hindustan Petroleum History
- How To Invest In Hindustan Petroleum Corporation Ltd Share?
- Investing in Hindustan Petroleum Corporation Ltd shares is a straightforward process:
- Hindustan Petroleum Corporation Ltd Fundamental Analysis – FAQs
Hindustan Petroleum Corporation Ltd Overview
Hindustan Petroleum Corporation Ltd (HPCL) is a leading Indian oil and gas company involved in the refining, marketing, and distribution of petroleum products. The company is recognized for its extensive network of refineries and distribution channels across India.
HPCL has a market capitalization of ₹85,868.28 crore and is listed on both the Bombay Stock Exchange (BSE) and National Stock Exchange (NSE). Currently, the stock is trading near its 52-week high of ₹407, significantly above its 52-week low of ₹159, indicating strong investor confidence. The all-time high of the stock is ₹407, while the all-time low is ₹23.4.
Hindustan Petroleum Financial Results
The company demonstrated strong financial growth from FY 22 to FY 24, with sales increasing from ₹3,49,913 crore to ₹4,33,857 crore, despite a dip in FY 23. The company maintained a stable OPM and improved EPS over the years, reflecting its ability to navigate challenging market conditions.
- Revenue Trend: Sales revenue showed fluctuations, increasing from ₹3,49,913 crore in FY 22 to ₹4,40,709 crore in FY 23, and then slightly declining to ₹4,33,857 crore in FY 24. Despite the slight decrease in FY 24, the overall trend indicates robust revenue growth over the period.
- Equity and Liabilities: As of March 2024, Hindustan Petroleum’s equity capital remained steady at ₹1,419 crore. Reserves increased to ₹45,502 crore, while borrowings slightly decreased to ₹66,684 crore. Other liabilities rose to ₹69,205 crore, reflecting financial adjustments over the years.
- Profitability: Operating Profit Margin (OPM) fluctuated significantly, moving from 3% in FY 22 to -2% in FY 23, and then improving to 6% in FY 24. This reflects the company’s challenges in operational efficiency during FY 23, followed by a recovery in FY 24.
- Earnings per Share (EPS): Earnings per Share (EPS) also varied, increasing from ₹51.36 in FY 22 to ₹112.89 in FY 24, despite a significant decline to -₹49.21 in FY 23. This fluctuation in EPS highlights the volatility in profit growth per share during these years.
- Return on Net Worth (RoNW): Return on Net Worth (RoNW) showcased considerable fluctuations, rising from 16.50% in FY 22 to 35.81% in FY 24, despite a dip to -32.38% in FY 23. These changes reflect the variability in returns on shareholders’ equity and overall profitability.
- Financial Position: The company’s EBITDA experienced fluctuations, increasing from ₹12,683 crore in FY 22 to ₹26,845 crore in FY 24, despite a significant negative EBITDA of -₹5,741 crore in FY 23. This showcases the company’s varied financial health and its ability to recover from challenging periods.
Hindustan Petroleum Corporation Ltd Financial Analysis
| FY 24 | FY 23 | FY 22 | |
| Sales | 4,33,857 | 4,40,709 | 3,49,913 |
| Expenses | 4,08,929 | 4,47,916 | 3,39,669 |
| Operating Profit | 24,928 | -7,207 | 10,244 |
| OPM % | 6 | -2 | 3 |
| Other Income | 1,917 | 1,466 | 2,439 |
| EBITDA | 26,845 | -5,741 | 12,683 |
| Interest | 2,556 | 2,174 | 997.32 |
| Depreciation | 5,596 | 4,560 | 4,000 |
| Profit Before Tax | 18,692 | -12,475 | 7,686 |
| Tax % | 24 | 24.08 | 24.06 |
| Net Profit | 16,015 | -6,980 | 7,294 |
| EPS | 112.89 | -49.21 | 51.36 |
| Dividend Payout % | 27.9 | 0 | 27.26 |
All values in ₹ Crores.
Hindustan Petroleum Corporation Limited Company Metrics
Hindustan Petroleum Corporation Ltd (HPCL) has a market cap of ₹85,868.28 crore, an EPS of ₹46.4, and a book value of ₹221 per share. With a 5.17% dividend yield, ₹66,684 crore debt, and 2.52 asset turnover, HPCL shows strong financial health and efficiency.
- Market Capitalization: Hindustan Petroleum Corporation Ltd (HPCL) has a market capitalization of ₹85,868.28 crore, representing the total market value of its outstanding shares. This figure highlights the company’s significant presence in the Indian oil and gas sector.
- EBITDA: HPCL’s EBITDA displayed fluctuations over the years, with ₹12,683 crore in FY 22, a negative ₹5,741 crore in FY 23, and a recovery to ₹26,845 crore in FY 24. These variations reflect the company’s operational challenges and recovery.
- Earnings per Share (EPS): HPCL has an EPS of ₹46.4, which indicates the profit attributed to each outstanding share of common stock, reflecting the company’s profitability and its ability to generate returns for shareholders.
- Face Value: The face value of Hindustan Petroleum Corporation’s shares is ₹10.00, which is the nominal value of each share as stated on the share certificate. This value is used in calculating dividends and determining the nominal value of shares.
- Asset Turnover: HPCL has an asset turnover ratio of 2.52, demonstrating the company’s high efficiency in utilizing its assets to generate revenue, which is critical in the capital-intensive oil and gas industry.
- Total Debt: Hindustan Petroleum Corporation carries a significant debt of ₹66,684 crore, reflecting its financial leverage. Effective management of this debt is crucial for the company’s long-term financial stability and growth.
- Dividend Yield: HPCL offers a dividend yield of 5.17%, indicating a strong annual dividend income relative to its current share price, making it an attractive option for income-focused investors.
- Book Value: Hindustan Petroleum Corporation has a book value of ₹221 per share, representing the net asset value of the company divided by the number of outstanding shares. This value provides insight into the company’s financial health and intrinsic worth.
Hindustan Petroleum Corporation Ltd Stock Performance
Hindustan Petroleum Corporation Ltd delivered impressive returns on investment with 129% over 1 year, 34.0% over 3 years, and 20.1% over 5 years, showcasing strong long-term performance and profitability for investors.
| Period | Return on Investment (%) |
| 1 Year | 129 |
| 3 Years | 34.0 |
| 5 Years | 20.1 |
Example: If an investor had invested ₹1,000 in HPCL’s stock:
1 year ago, their investment would be worth ₹2,290.
3 years ago, their investment would have grown to ₹1,340.
5 years ago, their investment would have increased to approximately ₹1,201.
This highlights HPCL’s strong returns and consistent growth over time.
Hindustan Petroleum Corporation Limited Peer Comparison
Hindustan Petroleum Corporation Ltd (HPCL), with a market cap of ₹85,910.84 crore, stands out among peers with a PE ratio of 8.72, ROE of 40.38%, and a dividend yield of 5.17%. HPCL’s 1-year return of 128.57% highlights its strong performance compared to other oil and gas companies.
| S.No. | Name | CMP Rs. | Mar Cap Rs.Cr. | P/E | ROE % | EPS 12M Rs. | 1Yr return % | ROCE % | Div Yld % |
| 1 | Reliance Industries | 3005.45 | 2033431.51 | 29.56 | 9.25 | 101.61 | 18.75 | 9.61 | 0.33 |
| 2 | I O C L | 172.9 | 244156.24 | 7.94 | 25.66 | 21.83 | 87.51 | 21.14 | 6.93 |
| 3 | B P C L | 351.55 | 152520.17 | 7.84 | 41.9 | 43.92 | 101.44 | 32.09 | 5.99 |
| 4 | H P C L | 403.75 | 85910.84 | 8.72 | 40.38 | 46.45 | 128.57 | 21.26 | 5.17 |
| 5 | M R P L | 213.7 | 37453.02 | 14.06 | 31.93 | 15.15 | 131.55 | 25.75 | 1.4 |
| 6 | C P C L | 986.3 | 14687.12 | 5.83 | 36.46 | 168.26 | 160.03 | 35.44 | 5.62 |
| 7 | Gandhar Oil Ref. | 220.95 | 2162.45 | 17.08 | 14.68 | 13.83 | 21.63 | 0.24 |
Hindustan Petroleum Shareholding Pattern
In FY 2024, Hindustan Petroleum Corporation’s shareholding pattern remained stable with promoters holding 54.9%. FII holdings slightly decreased from 14.36% to 13.8%, while DII holdings increased from 21.4% to 22.19%. Retail and others’ holdings saw a minor decline from 9.33% to 9.1%.
| FY 2024 | FY 2023 | FY 2022 | |
| Promoters | 54.9 | 54.9 | 54.9 |
| FII | 13.8 | 14.36 | 19.9 |
| DII | 22.19 | 21.4 | 15.09 |
| Retail & others | 9.1 | 9.33 | 10.1 |
All values in %
Hindustan Petroleum History
Hindustan Petroleum Corporation Ltd (HPCL) was established in 1974 following the nationalization of Esso and Lube India Ltd. It quickly became a major player in India’s oil and gas industry, contributing significantly to the country’s energy needs through refining, distribution, and marketing.
HPCL expanded its operations over the decades, setting up refineries in Mumbai and Visakhapatnam, which became crucial in meeting domestic fuel demand. The company also established an extensive network of fuel stations and distribution points across India, strengthening its market presence.
In 2003, HPCL was accorded the status of a Maharatna, a recognition of its significant contribution to the Indian economy and its robust financial performance. The company also diversified its product offerings, entering the petrochemicals and lubricants market, and enhancing its business portfolio.
Today, HPCL continues to be a leading oil and gas company in India, known for its operational efficiency and customer-centric approach. With a strong focus on innovation and sustainability, the company is poised for continued growth and plays a vital role in India’s energy sector.
How To Invest In Hindustan Petroleum Corporation Ltd Share?
Investing in Hindustan Petroleum Corporation Ltd shares is a straightforward process:
- Open a Demat Account: Start by opening a Demat and trading account with a reliable brokerage firm like Alice Blue.
- Complete KYC: Submit necessary documents for KYC verification.
- Fund Your Account: Deposit funds into your trading account.
- Buy Shares: Search for Hindustan Petroleum Corporation Ltd shares and place your buy order.
Hindustan Petroleum Corporation Ltd Fundamental Analysis – FAQs
HPCL’s fundamental analysis reveals a market cap of ₹85,868.28 crore, an EPS of ₹46.4, a PE ratio of 8.72, and significant debt of ₹66,684 crore. The company’s dividend yield is 5.17%, reflecting strong financial health.
Hindustan Petroleum Corporation Ltd (HPCL) has a market capitalization of ₹85,868.28 crore, highlighting its significant presence in the Indian oil and gas sector.
Hindustan Petroleum Corporation Ltd (HPCL) is a major Indian oil and gas company involved in the refining, distribution, and marketing of petroleum products, playing a crucial role in India’s energy sector since its establishment in 1974.
HPCL is a government-owned enterprise, with the majority shareholding held by the Indian government through ONGC, along with significant institutional and retail investors.
As of FY 2024, HPCL’s main shareholders include Promoters at 54.9%, Foreign Institutional Investors (FIIs) holding 13.8%, Domestic Institutional Investors (DIIs) at 22.19%, and Retail & others holding 9.1%.
HPCL is considered a good stock for income-focused investors due to its strong dividend yield of 5.17%, stable market position, and robust financial performance, although careful consideration of its debt is necessary.
HPCL operates in the oil and gas industry, specifically in refining, marketing, and distribution of petroleum products, making it a key player in India’s energy sector.
Investors can buy HPCL shares through stock exchanges by opening a trading account with Alice Blue or through online trading platforms, participating in market transactions during trading hours.
Determining if Hindustan Petroleum Corporation (HPCL) is overvalued or undervalued requires analyzing its current market price compared to its intrinsic value, considering factors like PE ratio, growth prospects, and industry comparisons. With a PE ratio of 10.06, HPCL might be considered undervalued compared to its earnings, suggesting that the stock price may be relatively low given the company’s profitability.
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Disclaimer: The above article is written for educational purposes, and the companies’ data mentioned in the article may change with respect to time The securities quoted are exemplary and are not recommendatory.
