⚠ Disclaimer: This report is generated using AI tools and is for informational purposes only. It does not constitute investment advice. Please consult a registered financial advisor before making any investment decisions.
HINDPETRO - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 4.1
| Stock Code | HINDPETRO | Market Cap | 74,325 Cr. | Current Price | 349 ₹ | High / Low | 508 ₹ |
| Stock P/E | 4.76 | Book Value | 244 ₹ | Dividend Yield | 3.01 % | ROCE | 11.8 % |
| ROE | 16.9 % | Face Value | 10.0 ₹ | DMA 50 | 424 ₹ | DMA 200 | 428 ₹ |
| Chg in FII Hold | 1.87 % | Chg in DII Hold | -1.60 % | PAT Qtr | 4,072 Cr. | PAT Prev Qtr | 3,830 Cr. |
| RSI | 25.1 | MACD | -24.4 | Volume | 95,31,594 | Avg Vol 1Wk | 1,10,53,823 |
| Low price | 324 ₹ | High price | 508 ₹ | PEG Ratio | 0.86 | Debt to equity | 1.16 |
| 52w Index | 13.7 % | Qtr Profit Var | 34.7 % | EPS | 73.4 ₹ | Industry PE | 13.7 |
📊 Core Financials
- Quarterly PAT rose from ₹3,830 Cr. to ₹4,072 Cr. (~6% sequential growth, ~34.7% YoY growth).
- ROE: 16.9% → solid profitability.
- ROCE: 11.8% → moderate capital efficiency.
- Debt-to-equity: 1.16 → relatively high leverage, typical for oil marketing companies.
- Dividend Yield: 3.01% → attractive shareholder returns.
💹 Valuation Indicators
- P/E Ratio: 4.76 vs Industry PE 13.7 → undervalued compared to peers.
- P/B Ratio: 1.43 (Current Price ₹349 / Book Value ₹244) → fairly valued relative to assets.
- PEG Ratio: 0.86 → valuation supported by earnings growth.
- Intrinsic Value: Current price below fair value, offering upside potential.
🏢 Business Model & Competitive Advantage
- Hindustan Petroleum Corporation Limited (HPCL) operates in refining, marketing, and distribution of petroleum products.
- Business model relies on fuel retailing, refining margins, and government-linked pricing policies.
- Competitive advantage: Strong distribution network, brand presence, and government backing.
📈 Entry Zone & Long-Term Guidance
- Entry Zone: Attractive near ₹330–₹350 (close to 52-week low, RSI at 25.1 indicates oversold zone).
- Long-Term Holding: Suitable for investors seeking undervalued PSU exposure with strong dividend yield, though leverage and policy risks remain.
✅ Positive
- Strong quarterly profit growth (~34.7% YoY).
- Attractive dividend yield of 3.01%.
- FII holdings increased (+1.87%), showing foreign investor confidence.
⚠️ Limitation
- High debt-to-equity ratio (1.16) increases financial risk.
- ROCE at 11.8% is moderate compared to industry leaders.
- DII holdings decreased (-1.60%), showing reduced domestic institutional support.
📉 Company Negative News
- Stock trading below 50 DMA (₹424) and 200 DMA (₹428), indicating bearish momentum.
- MACD at -24.4 signals weak technical trend.
📈 Company Positive News
- Quarterly PAT increased from ₹3,830 Cr. to ₹4,072 Cr.
- FII holdings increased significantly (+1.87%), reflecting foreign confidence.
🌐 Industry
- Oil & gas industry PE at 13.7, higher than HPCL’s 4.76, showing relative undervaluation.
- Industry growth driven by rising fuel demand, refining capacity expansion, and government infrastructure push.
🔎 Conclusion
- Hindustan Petroleum is fundamentally strong with improving earnings and attractive dividend yield.
- Valuation is highly attractive compared to peers, though debt levels and policy risks must be monitored.
- Best strategy: Accumulate near ₹330–₹350 and hold long-term to benefit from undervaluation and stable dividend income.