HINDPETRO - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 4.0
| Stock Code | HINDPETRO | Market Cap | 82,911 Cr. | Current Price | 390 ₹ | High / Low | 508 ₹ |
| Stock P/E | 4.83 | Book Value | 281 ₹ | Dividend Yield | 2.69 % | ROCE | 23.1 % |
| ROE | 32.5 % | Face Value | 10.0 ₹ | DMA 50 | 382 ₹ | DMA 200 | 407 ₹ |
| Chg in FII Hold | 0.91 % | Chg in DII Hold | -1.06 % | PAT Qtr | 4,902 Cr. | PAT Prev Qtr | 4,072 Cr. |
| RSI | 55.8 | MACD | 2.46 | Volume | 40,56,143 | Avg Vol 1Wk | 70,48,804 |
| Low price | 316 ₹ | High price | 508 ₹ | PEG Ratio | 0.08 | Debt to equity | 0.88 |
| 52w Index | 38.2 % | Qtr Profit Var | 46.1 % | EPS | 80.7 ₹ | Industry PE | 14.8 |
📊 Core Financials
- Revenue Growth: Quarterly PAT rose to ₹4,902 Cr from ₹4,072 Cr, showing strong 46.1% growth.
- Profit Margins: ROE at 32.5% and ROCE at 23.1% highlight solid profitability.
- Debt Ratios: Debt-to-equity of 0.88 reflects relatively high leverage compared to peers.
- Cash Flows: Dividend yield of 2.69% provides decent shareholder returns.
- Return Metrics: EPS of ₹80.7 demonstrates strong earnings power.
💹 Valuation Indicators
- P/E Ratio: 4.83 vs industry PE of 14.8, suggesting undervaluation.
- P/B Ratio: Price ₹390 vs book value ₹281, trading at ~1.4x book.
- PEG Ratio: 0.08, indicating very attractive valuation relative to growth.
- Intrinsic Value: Current price near DMA 50 (₹382) and below DMA 200 (₹407), showing consolidation.
🏢 Business Model & Competitive Advantage
Hindustan Petroleum Corporation Limited (HINDPETRO) operates in oil refining, marketing, and distribution. Its competitive advantage lies in strong brand presence, government backing, and extensive retail network. High ROE and strong PAT growth reinforce operational strength, though leverage remains elevated.
📈 Entry Zone & Long-Term Guidance
Entry zone looks attractive around ₹370–₹400 given RSI (55.8) and MACD (2.46) showing stable momentum. Long-term holding is favorable due to undervaluation, strong profitability, and dividend yield, though debt levels and industry cyclicality should be monitored.
✅ Positive
- Strong quarterly PAT growth (46.1%).
- High ROE (32.5%) and ROCE (23.1%) reflect efficient capital use.
- P/E ratio (4.83) significantly below industry average (14.8), suggesting undervaluation.
⚠️ Limitation
- Debt-to-equity ratio of 0.88 indicates relatively high leverage.
- Dividend yield of 2.69% is moderate compared to profitability levels.
📉 Company Negative News
- DII holding decreased (-1.06%), showing reduced domestic institutional support.
- Stock trading below DMA 200, reflecting weak long-term momentum.
📈 Company Positive News
- FII holding increased (+0.91%), showing foreign investor confidence.
- Quarterly PAT surged from ₹4,072 Cr to ₹4,902 Cr.
🏭 Industry
The oil and gas industry is cyclical, influenced by global crude prices and government policies. Industry PE at 14.8 is much higher than HINDPETRO’s 4.83, suggesting undervaluation. Rising energy demand supports long-term growth, though volatility in crude prices remains a risk.
🔎 Conclusion
HINDPETRO demonstrates strong profitability and undervaluation relative to peers, with high ROE and solid PAT growth. Entry around ₹370–₹400 is attractive for investors. Long-term holding is recommended for value and dividend potential, though debt levels and industry cyclicality should be considered.
Would you like me to also compare HINDPETRO with peers like BPCL, IOC, and ONGC to evaluate relative strengths in the oil & gas sector?