HINDPETRO - Investment Analysis: Buy Signal or Bull Trap?
Back to ListInvestment Rating: 4.0
| Stock Code | HINDPETRO | Market Cap | 97,623 Cr. | Current Price | 459 ₹ | High / Low | 508 ₹ |
| Stock P/E | 6.24 | Book Value | 244 ₹ | Dividend Yield | 2.29 % | ROCE | 11.8 % |
| ROE | 16.9 % | Face Value | 10.0 ₹ | DMA 50 | 452 ₹ | DMA 200 | 430 ₹ |
| Chg in FII Hold | 1.87 % | Chg in DII Hold | -1.60 % | PAT Qtr | 4,072 Cr. | PAT Prev Qtr | 3,830 Cr. |
| RSI | 55.3 | MACD | -4.92 | Volume | 82,60,757 | Avg Vol 1Wk | 80,18,309 |
| Low price | 288 ₹ | High price | 508 ₹ | PEG Ratio | 1.13 | Debt to equity | 1.16 |
| 52w Index | 77.7 % | Qtr Profit Var | 34.7 % | EPS | 73.4 ₹ | Industry PE | 10.0 |
📊 Analysis: Hindustan Petroleum (HINDPETRO) offers attractive valuations with a low P/E of 6.24 compared to industry average of 10.0, and a PEG ratio of 1.13 suggesting growth is fairly priced. ROE (16.9%) and ROCE (11.8%) are moderate, while debt-to-equity (1.16) is relatively high but manageable for an oil & gas PSU. Dividend yield (2.29%) provides decent income support. Current price (₹459) is above both 50 DMA (₹452) and 200 DMA (₹430), reflecting bullish momentum. RSI (55.3) indicates neutral conditions, while MACD (-4.92) shows mild weakness. The ideal entry zone lies between ₹440–₹455 for long-term investors. If already holding, maintain positions for 3–4 years, leveraging dividends and cyclical growth, but consider partial profit booking near ₹500–₹508 resistance levels.
✅ Positive
- Attractive P/E (6.24) compared to industry average (10.0).
- Strong quarterly PAT growth (₹4,072 Cr vs ₹3,830 Cr), +34.7% variation.
- Dividend yield (2.29%) supports long-term holding.
- FII holdings increased (+1.87%), reflecting foreign investor confidence.
⚠️ Limitation
- Debt-to-equity ratio (1.16) is relatively high.
- ROCE (11.8%) is modest compared to profitability levels.
- DII holdings decreased (-1.60%), showing cautious domestic sentiment.
📉 Company Negative News
- MACD (-4.92) indicates weak near-term momentum.
- Stock trading close to 52-week high (₹508), limiting immediate upside.
📈 Company Positive News
- EPS at ₹73.4 reflects strong earnings base.
- Quarterly profit growth highlights operational resilience.
- Volume stability (82L vs avg 80L) indicates consistent investor interest.
🏭 Industry
- Oil & gas sector benefits from rising energy demand and government support.
- Industry PE (10.0) is higher than HINDPETRO, making the stock relatively undervalued.
🔎 Conclusion
HINDPETRO is a fundamentally strong PSU with attractive valuations and decent dividend yield, making it a good candidate for long-term investment. Ideal entry is around ₹440–₹455. Existing holders should maintain positions for 3–4 years, leveraging dividends and cyclical growth, while booking profits near ₹500–₹508 resistance levels.
Would you like me to extend this with a peer benchmarking overlay (BPCL, IOC, ONGC) so you can compare HINDPETRO’s valuation and profitability against its closest oil & gas peers?