HINDPETRO - Investment Analysis

Last Updated Time : 02 Aug 25, 12:58 am

⛽ Investment Analysis: HINDPETRO (Hindustan Petroleum Corporation Ltd.)

Investment Rating: 3.8

📚 Key Fundamental Insights

ROE (13.7%) and ROCE (10.5%) are moderate—acceptable but not outstanding for long-term compounding.

EPS of ₹31.7 gives strength to the bottom line and supports valuation.

Quarterly PAT jump of 26.1% shows improving profitability momentum.

Dividend Yield (2.47%) adds income value, though not exceptional for the oil sector.

Debt-to-equity ratio of 1.38 flags moderate leverage risk, typical for oil refiners—but something to watch if margins compress.

🧮 Valuation & Technical Overview

P/E of 13.4 is attractively below the industry average of 21.6, implying undervaluation.

PEG Ratio of -6.31 is skewed—likely due to volatility or non-linear earnings projections. Treat with caution rather than rejecting outright.

RSI (48.6) and MACD (2.06) indicate stable technical momentum, neither overly bullish nor oversold.

Trading above both 50-DMA and 200-DMA, reflecting positive intermediate trend.

🎯 Ideal Entry Zone: ₹390 – ₹410 This is near the 200-DMA and comfortably below recent highs, offering a solid risk-reward trade-off.

🧭 Holding Strategy (If You're Already Invested)

If entered below ₹400, consider holding for 2–4 years, given stable fundamentals and potential re-rating if oil prices remain favorable.

Monitor margins, debt levels, and policy changes around energy subsidies and fuel pricing.

Exit Strategy

Partial booking near ₹450–₹460 resistance zone.

Reassess if ROCE dips below 9% or debt climbs significantly.

Longer holding is viable if earnings growth continues, dividend improves, and valuation remains below sector average.

Want help exploring macro oil sector trends or comparing it with other PSU refiners like IOC or BPCL? Happy to dive in.

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