Check Before You Invest : Hindustan Oil Exploration Company Ltd

Q: 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: 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 multi-year financial track record. This assessment is based on company’s performance on Revenue growth, ROCE, Equity and Assets, key margin ratios, cash conversion cycle, and debt to cash flow from operations and how it compares with its long term averages.

Q: Is Hindustan Oil Exploration Company Ltd undervalued or overvalued?

Hindustan Oil Exploration Company Ltd appears Undervalued, as its key valuation ratios are lower than their past averages. Based on the industry it operates in, the relevant valuation ratios include one of the following, P/E, P/BV, P/Sales, EV/EBITDA or a combination of two or more. Valuation Ratios. Price to Earnings, Current: 10.39, Historic Median: 31.69. Price to Book, Current: 1.76, Historic Median: 2.43. Price to Sales, Current: 3.72, Historic Median: 7.09. EV to EBITDA, Current: 9.52, Historic Median: 18.32

Q: 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

Q: 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 11.22%, indicating slower growth.

Q: 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 in line with its 5-year median of 56.4%, indicating stable margins.

Q: 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: 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 its 5-year median of 42.95%, indicating increasing margins. Profitability Metrics. Gross Profit Margin (%), Current: 58.4, Historic Median: 56.4. Operating Profit Margin (%), Current: 38.3, Historic Median: 52.87. Net Profit Margin (%), Current: 48.18, Historic Median: 42.95

Q: 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: 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 5-year historical median of 9.42%. The current ROCE is above its estimated weighted average cost of capital (WACC) of 14%, indicating value creation.

Check Before You Invest : Hindustan Oil Exploration Company Ltd

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 multi-year financial track record.

This assessment is based on company’s performance on Revenue growth, ROCE, Equity and Assets, key margin ratios, cash conversion cycle, and debt to cash flow from operations and how it compares with its long term averages.

Q.3 Is Hindustan Oil Exploration Company Ltd undervalued or overvalued?

Hindustan Oil Exploration Company Ltd appears Undervalued, as its key valuation ratios are lower than their past averages.

Based on the industry it operates in, the relevant valuation ratios include one of the following, P/E, P/BV, P/Sales, EV/EBITDA or a combination of two or more.

Valuation Ratios	Current	5-year Historic Median
Price to Earnings	10.39	31.69
Price to Book	1.76	2.43
Price to Sales	3.72	7.09
EV to EBITDA	9.52	18.32

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

We have analysed the performance of the company on the following:

How has it performed on generating Profits?
By checking its Revenue growth, Gross, Operating and Net Margins compared to its last 5-year median.
How efficiently has it utilized Capital?
By checking its ROCE, ROA, ROE and its Cash Conversion Cycle.
How is it managing its Debt?
By checking its Debt to Equity and Cash Flow from Operations.

A: What are the trends in revenue and profit margins?

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 11.22%, 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 in line with its 5-year median of 56.4%, indicating stable 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 its 5-year median of 42.95%, indicating increasing margins.

	Current Level	5-year Historic Median
Gross Profit Margin (%)	58.4	56.4
Operating Profit Margin (%)	38.3	52.87
Net Profit Margin (%)	48.18	42.95

B: Does the business utilize capital efficiently?

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 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 5-year historical median of 9.42%. The current ROCE is above its estimated weighted average cost of capital (WACC) of 14%, indicating value creation.

Q.7 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 5-year historical median of 9.33%, indicating the business is making better use of its shareholders capital.

Q.8 Cash conversion cycle of Hindustan Oil Exploration Company Ltd?

Hindustan Oil Exploration Company Ltd Cash conversion cycle is 141 days, above its 5-year historical median of 23 days, indicating deteriorated working capital management. However, you need to compare this with its peers in the industry.

	Current Level	5-year Historic Median
Asset Turnover (x)	0.19	0.19
ROE (%)	13.58	9.33
ROCE (%)	14.44	9.42
Cash Conversion Cycle	141 days	23 days

C: How much debt does the business have and is it at a sustainable level?

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 the industry average of 0.07, 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

D: Promoter shareholding and pledge status of Hindustan Oil Exploration Company Ltd?

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)

E: How does Hindustan Oil Exploration Company Ltd performance compare with that of its Peers?

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 9.51%, indicating faster growth and gaining its market share.

Profit Metrics

	Current Level	5-year Industry Median
Revenue Growth (%)	-34	9.5
Gross Profit Growth (%)	55.7	16.9
Operating Profit Growth (%)	11.4	15.9
Net Profit Growth (%)	72.9	33.9

Operating Efficiency

	Current Level	5-year Industry Median
Asset Turnover (x)	0.19	0.21
ROE (%)	13.58	8.66
ROCE (%)	14.44	9.36
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 16.8% based on the current price.

	9Y	5Y	3Y	1Y
Share Price CAGR	16.8%	6.3%	-0.5%	-5%

Q.2 Valuation ratios of Hindustan Oil Exploration Company Ltd vs historical?

The current P/E ratio of 10.39 is lower than its historical median of 31.69, indicating that the stock is trading below its historical average valuation.

Q.3 How do the current valuation ratios compare with 5-year historical median and industry numbers?

Valuation Ratios	Current	5-year Historic Median	5-year Industry Median
Price to Earnings	10.39	31.69	22.52
Price to Book	1.76	2.43	1.33
Price to Sales	3.72	7.09	4.32
EV to EBITDA	9.52	18.32	7.69

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Check Before You Invest : Hindustan Oil Exploration Company Ltd

Snapshot

Performance Analysis

Ownership & governance

Peer comparison (industry-wise, mcap)

Profit Metrics

Operating Efficiency

Valuation & price assessment

Check more companies

Check trending companies

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