HINDPETRO - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 4.0
| Stock Code | HINDPETRO | Market Cap | 79,698 Cr. | Current Price | 375 ₹ | High / Low | 508 ₹ |
| Stock P/E | 5.10 | Book Value | 244 ₹ | Dividend Yield | 2.80 % | ROCE | 11.8 % |
| ROE | 16.9 % | Face Value | 10.0 ₹ | DMA 50 | 383 ₹ | DMA 200 | 411 ₹ |
| Chg in FII Hold | 0.91 % | Chg in DII Hold | -1.06 % | PAT Qtr | 4,072 Cr. | PAT Prev Qtr | 3,830 Cr. |
| RSI | 51.8 | MACD | 2.49 | Volume | 55,54,027 | Avg Vol 1Wk | 48,84,322 |
| Low price | 316 ₹ | High price | 508 ₹ | PEG Ratio | 0.92 | Debt to equity | 1.16 |
| 52w Index | 30.4 % | Qtr Profit Var | 34.7 % | EPS | 73.4 ₹ | Industry PE | 15.7 |
Positive
- Very low P/E ratio (5.10) compared to industry average (15.7), indicating undervaluation.
- Strong EPS of ₹73.4 supports profitability.
- ROE (16.9%) and ROCE (11.8%) highlight decent efficiency.
- Dividend yield of 2.80% provides steady income.
- Quarterly PAT growth of 34.7% shows strong earnings momentum.
- FII holdings increased (+0.91%), signaling foreign investor confidence.
Limitation
- High debt-to-equity ratio (1.16) raises leverage concerns.
- Current price (₹375) below both 50 DMA (₹383) and 200 DMA (₹411), reflecting weak technical sentiment.
- RSI at 51.8 and MACD (2.49) show neutral momentum.
- DII holdings decreased (-1.06%), indicating reduced domestic institutional support.
Company Negative News
- High leverage remains a structural risk.
- Weak technical positioning below long-term averages.
- Decline in DII holdings adds pressure on sentiment.
Company Positive News
- Quarterly PAT surged to ₹4,072 Cr. from ₹3,830 Cr.
- EPS growth supports long-term fundamentals.
- FII stake increased, reflecting foreign confidence.
Industry
- Oil & gas sector trading at industry P/E of 15.7, higher than Hindustan Petroleum’s 5.10, suggesting undervaluation.
- Sector outlook remains volatile due to crude price fluctuations and regulatory pressures.
- Hindustan Petroleum’s competitive advantage lies in strong refining capacity and retail distribution network.
Conclusion
Hindustan Petroleum shows strong earnings growth, undervaluation, and decent efficiency, but faces high debt and weak technicals.
Entry Zone: Attractive accumulation range between ₹370–₹380.
Long-Term Guidance: Suitable for investors seeking undervalued exposure in oil & gas with dividend support. Expect moderate returns with upside potential once debt concerns ease and technical strength improves.
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