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HINDPETRO - Swing Trade Analysis with AI Signals

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Rating: 3.6

Last Updated Time : 05 May 26, 03:34 pm

Swing Trade Rating: 3.6

Stock Code HINDPETRO Market Cap 79,538 Cr. Current Price 374 ₹ High / Low 508 ₹
Stock P/E 5.09 Book Value 244 ₹ Dividend Yield 2.81 % ROCE 11.8 %
ROE 16.9 % Face Value 10.0 ₹ DMA 50 382 ₹ 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 51.3 MACD 2.31 Volume 75,30,207 Avg Vol 1Wk 57,02,532
Low price 316 ₹ High price 508 ₹ PEG Ratio 0.92 Debt to equity 1.16
52w Index 30.0 % Qtr Profit Var 34.7 % EPS 73.4 ₹ Industry PE 15.1

📊 Hindustan Petroleum (HINDPETRO) has attractive valuations with a very low P/E (5.09) compared to industry average, strong EPS, and decent dividend yield. However, high debt-to-equity (1.16) and modest ROCE (11.8%) limit upside potential. The RSI at 51.3 suggests neutral momentum, making it suitable for swing trading if entered near support. Optimal entry would be around ₹365–375 (near current price and 50 DMA). If already holding, consider exiting near ₹495–508, which aligns with resistance levels from the recent high.

✅ Positive

  • Low P/E (5.09) compared to industry average (15.1), indicating undervaluation.
  • EPS of ₹73.4 shows strong earnings power.
  • Dividend yield of 2.81% provides income support.
  • Quarterly PAT increased from ₹3,830 Cr. to ₹4,072 Cr. (34.7% growth).

⚠️ Limitation

  • High debt-to-equity ratio (1.16) increases financial risk.
  • ROCE (11.8%) is modest compared to peers.
  • Stock trading below 200 DMA (₹411), showing weak medium-term trend.

📉 Company Negative News

  • DII holdings decreased by 1.06%, reflecting reduced domestic institutional confidence.

📈 Company Positive News

  • FII holdings increased by 0.91%, showing foreign investor interest.
  • Quarterly profit growth highlights operational improvement.
  • Trading volume above weekly average indicates strong market participation.

🏭 Industry

  • Industry P/E at 15.1 is higher than HINDPETRO’s 5.09, suggesting undervaluation.
  • Sector momentum is weaker with a 52-week index at 30.0%, reflecting volatility.

📝 Conclusion

HINDPETRO is undervalued with strong earnings and dividend yield, but high debt and modest efficiency metrics limit upside. Swing traders should enter near ₹365–375. If already holding, exit near ₹495–508 to capture gains before potential resistance-driven pullback.

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