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Check Before You Invest : Hindustan Oil Exploration Company Ltd

BSE: 500186 NSE: HINDOILEXP ISIN: INE345A01011
  |   Sector:  Oil & Gas   |   Industry:  Oil Exploration

Snapshot

Q.1 Which industry/sub-sector does Hindustan Oil Exploration Company Ltd belong to?
Hindustan Oil Exploration Company Ltd belongs to the Oil & Gas sector, operating specifically within the Oil Exploration segment.
Q.2 Is Hindustan Oil Exploration Company Ltd a good quality company?
Hindustan Oil Exploration Company Ltd is a average quality company, based on a somewhat consistent 10 year financial track record.
Q.3 Is Hindustan Oil Exploration Company Ltd undervalued or overvalued?
Hindustan Oil Exploration Company Ltd appears Undervalued, as its key valuation ratios are below with their past averages.
Q.4 Is Hindustan Oil Exploration Company Ltd a good buy now?
Hindustan Oil Exploration Company Ltd is a good buy now, based on strong price trend analysis suggesting prices may rise. However, you need to check its quality and valuation before making a decision

Performance Analysis

Q.1 Revenue growth of Hindustan Oil Exploration Company Ltd?
Hindustan Oil Exploration Company Ltd revenue growth is -34% for FY-2025 , which is below its 5 year CAGR of 11.2% , indicating slower growth.
Q.2 Gross Profit margin of Hindustan Oil Exploration Company Ltd?
Hindustan Oil Exploration Company Ltd Gross profit margin which is the profit after deduction of direct costs, is 58.4% for FY-2025 , which is above its 5 year median of 56.4% , indicating increasing margins.
Q.3 Operating Profit Margin of Hindustan Oil Exploration Company Ltd?
Hindustan Oil Exploration Company Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 38.3% for FY-2025 , which is below its 5 year median of 52.87% indicating decreasing margins.
Q.4 Net Profit Margin of Hindustan Oil Exploration Company Ltd?
Hindustan Oil Exploration Company Ltd Net Profit Margin is 48.18% for FY-2025 , is above with its 5 year median of 42.95%, indicating increasing margins.
Current Level Historic Median
Gross Profit Margin 58.4 56.4
Operating Profit Margin 38.3 52.87
Net Profit Margin 48.18 42.95
Q.5 Return on Asset of Hindustan Oil Exploration Company Ltd?
Hindustan Oil Exploration Company Ltd Return on Asset is 9.28%, which is above its 5 year historical median of 6.72%, indicating improved asset utilization efficiency.
Q.6 Return on Equity (ROE) of Hindustan Oil Exploration Company Ltd?
Hindustan Oil Exploration Company Ltd Return on equity is 13.58% for FY-2025 , which is above its historical median of 9.33%, indicating the business is making better use of its shareholders capital.
Q.7 Return on capital employed (ROCE) of Hindustan Oil Exploration Company Ltd?
Hindustan Oil Exploration Company Ltd Return on capital employed is 14.44% for FY-2025 , which is above its estimated weighted average cost of capital(WACC) 14%, indicating value creation.
Q.8 Cash conversion cycle of Hindustan Oil Exploration Company Ltd?
Hindustan Oil Exploration Company Ltd Cash conversion cycle is 141 days, above its historical median of 23 days, indicating deteriorated working capital management. However, you need to compare this with its peers in the industry.
Current Level Historic Median
Asset Turnover 0.19 0.19
ROE 13.58 9.33
ROCE 14.44 9.42
Cash Conversion Cycle 141 days 23 days
Q.9 Debt to Equity ratio of Hindustan Oil Exploration Company Ltd?
Hindustan Oil Exploration Company Ltd Debt-to-Equity ratio is 0.04 , which is lower with the industry average of 0.11 , indicating lower debt levels in the industry.
Q.10 Debt to cash flow from operations of Hindustan Oil Exploration Company Ltd?
Hindustan Oil Exploration Company Ltd Debt to cash flow from operations is 0.49 , which is at a healthy level.

Ownership & governance

Q.1 Promoter shareholding and pledge status of Hindustan Oil Exploration Company Ltd?
Promoters hold 0.00% of the Hindustan Oil Exploration Company Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 Revenue growth of Hindustan Oil Exploration Company Ltd vs industry peers?
Hindustan Oil Exploration Company Ltd revenue CAGR is 11.22% , compared to the industry median CAGR of 10.75% , indicating faster growth and gaining its market share.
Profit Metrics
Current Level Industry Median
Revenue 306.1 173.2
Gross Profit 178.7 29.8
Operating Profit 117 28.2
Net Profit 147 17.8
Operating Efficiency
Current Level Industry Median
Asset Turnover 0.19 0.24
ROE 13.58 8.97
ROCE 14.44 10.55
Cash Conversion Cycle (days) 140.6 55

Valuation & price assessment

Q.1 Stock return of Hindustan Oil Exploration Company Ltd over the last decade?
Over the last 9 year(s), the stock has delivered a CAGR of 17.1% based on the current price.
Q.2 What return has the stock given over the last decade?
9Y 5Y 3Y 1Y
Share Price 17.1% 10.7% 6.2% -9.1%
Q.3 Valuation ratios of Hindustan Oil Exploration Company Ltd vs historical?
The current P/E is higher that its historical median.
Q.4 How do the current valuation ratios measure up against the historic numbers and the current industry numbers?
Valuation Ratios Current Historic Median Industry Median
Price to Earnings 10 9.00 11.98
Price to Book 1.69 1.63 1.32
Price to Sales 3.58 7.26 3.25
EV to EBITDA 9.16 8.46 7.77

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