Hindustan Petroleum Corporation Ltd - Stock Valuation and Financial Performance

BSE: 500104 | NSE: HINDPETRO | Refineries | Mid Cap

HPCL Share Price

482.25 -5.30 -1.09%
as on 12-Apr'24 10:20

DeciZen - make an informed investing decision on HPCL

Overall Rating
Bole Toh

1. Quality

2. Valuation

Fair

3. Price Trend

Semi Strong

Hindustan Petroleum Corporation stock performance -

mw4me loader
P/E Ratio (CD):
4.09
Market Cap:
69,161.3 Cr.
52-wk low:
222.4
52-wk high:
594.5

Is Hindustan Petroleum Corporation Ltd an attractive stock to invest in?

1. Is Hindustan Petroleum Corporation Ltd a good quality company?

Past 10 year's financial track record analysis by Moneyworks4me indicates that Hindustan Petroleum Corporation Ltd is a average quality company.

2. Is Hindustan Petroleum Corporation Ltd undervalued or overvalued?

The key valuation ratios of Hindustan Petroleum Corporation Ltd's currently when compared to its past seem to suggest it is in the Fair zone.

3. Is Hindustan Petroleum Corporation Ltd a good buy now?

The Price Trend analysis by MoneyWorks4Me indicates it is Semi Strong which suggest that the price of Hindustan Petroleum Corporation Ltd is likely to Rise-somewhat in the short term. However, please check the rating on Quality and Valuation before investing.

10 Year X-Ray of HPCL:

Analysis of Financial Track Record

Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end
Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end

Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end.

Financial track record gives insight into the company's performance on key parameters over the past ten years. MoneyWorks4me’s proprietary colour codes make it easy for retail investors to gauge the company’s past performance.
Hindustan Petroleum Corporation Ltd has performed well in some of the past ten years indicating its past ten year financial track record is somewhat good

Value Creation

Value Creation Index Colour Code Guide

Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23TTM
ROCE % 6.2%4%12.1%20.8%16.5%14.5%7.1%13.9%9.5%-4.4%-
Value Creation
Index
-0.5-0.60.10.90.50.3-0.40.2-0.2-1.4-

Growth Parameters

Growth Parameters Colour Code Guide

Sales 2,34,2372,16,6481,77,9101,87,4932,19,5102,75,4912,69,0922,33,2483,49,9134,40,7094,53,267
Sales YoY Gr.--7.5%-17.9%5.4%17.1%25.5%-2.3%-13.3%50%26%-
Adj EPS 13.76.432.353.346.346.726.168.850.5-39.3119.2
YoY Gr.--53.6%407.5%64.7%-13%0.9%-44.2%164%-26.6%-177.8%-
BVPS (₹) 90.888.3109.4138.3167.6199.5203.3262.3291.9227.4320.8
Adj Net
Profit
2,0959734,9278,1147,0567,1203,9719,9887,161-5,57416,913
Cash Flow from Ops. 7,00719,4106,65110,25411,0378,5545,46917,82915,810-3,466-
Debt/CF from Ops. 6.91.93.32.223.38.12.32.8-19.3-

CAGR

CAGR Colour Code Guide

9 Years 5 Years 3 Years 1 Years
Sales 7.3%15%17.9%26%
Adj EPS -212.4%-196.8%-214.7%-177.8%
BVPS10.8%6.3%3.8%-22.1%
Share Price 21.4% 13.2% 28.8% 109.7%

Key Financial Parameters

Performance Ratio Colour Code Guide

Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23TTM
Return on
Equity %
15.2732.24330.325.512.928.918-15.143.5
Op. Profit
Mgn %
2.91.94.95.84.94.42.56.92.9-1.25.6
Net Profit
Mgn %
0.90.42.84.33.22.61.54.32.1-1.33.7
Debt to
Equity
3.52.71.31.10.90.91.41.11.12.1-
Working Cap
Days
6457484546454952443621
Cash Conv.
Cycle
1916101110811171510-11

Recent Performance Summary

Return on Equity has increased versus last 3 years average to 43.50%

Sales growth is growing at healthy rate in last 3 years 17.87%

Net Profit has been subdued in last 3 years -214.67%

Debt to equity has increased versus last 3 years average to 2.08

Sales growth is not so good in last 4 quarters at -0.37%

Latest Financials - Hindustan Petroleum Corporation Ltd.

Standalone Consolidated
TTM EPS (₹) 106.3 119.2
TTM Sales (₹ Cr.) 4,52,927 4,53,267
BVPS (₹.) 280.4 320.8
Reserves (₹ Cr.) 38,354 44,087
P/BV 1.74 1.52
PE 4.59 4.09
From the Market
52 Week Low / High (₹) 222.35 / 594.45
All Time Low / High (₹) 19.70 / 594.45
Market Cap (₹ Cr.) 69,161
Equity (₹ Cr.) 1,418.6
Face Value (₹) 10
Industry PE 17.7

Management X-Ray of HPCL:

Shareholding Pattern

Promoter's Holding & Share Pledging

Pledged *0.000.000.000.000.000.000.000.000.000.00
* Pledged shares as % of Promoter's holding (%)

Event Update

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Analyst's Notes

Adj EPS (Rs.)

Sales (Cr.)

ROE (%)

ROCE (%)

Profit And Loss

(All Figures are in Crores.)
PARTICULARSMar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23
Sales2,34,2372,16,6481,77,9101,87,4932,19,5102,75,4912,69,0922,33,2483,49,9134,40,709
Operating Expenses 2,28,9632,12,6771,69,6311,76,6132,08,8282,63,9632,63,4292,17,2453,39,6694,47,916
Manufacturing Costs7,1307,7827,9477,9908,8999,6749,8559,73110,81711,812
Material Costs2,16,0492,00,1071,56,6421,63,3821,94,2372,47,8062,46,4632,00,2413,21,7264,26,797
Employee Cost 2,1972,5932,3392,9692,8932,9713,2243,2193,0173,001
Other Costs 3,5882,1962,7022,2722,8003,5123,8874,0544,1086,306
Operating Profit 5,2753,9718,27910,88010,68211,5275,66316,00310,244-7,207
Operating Profit Margin (%) 2.3%1.8%4.7%5.8%4.9%4.2%2.1%6.9%2.9%-1.6%
Other Income 1,4312,5971,0831,3841,5591,4531,6822,6442,4391,466
Interest 2,3931,8417236096187861,1399639972,174
Depreciation 3,0112,4972,8462,7762,8343,0853,3703,6254,0004,560
Exceptional Items 2300000-1,003000
Profit Before Tax 1,3252,2316,73511,19710,11010,0391,37414,1979,144-9,984
Tax 2457422,0602,9622,8923,349-1,2643,5341,849-3,004
Profit After Tax 1,0801,4894,6758,2367,2186,6912,63910,6637,294-6,980
PAT Margin (%) 0.5%0.7%2.6%4.4%3.3%2.4%1.0%4.6%2.1%-1.6%
Adjusted EPS (₹)7.19.830.754.147.443.917.373.451.4-49.2
Dividend Payout Ratio (%)49%55%25%37%36%36%56%31%27%0%

Balance Sheet

(All Figures are in Crores.)
PARTICULARSMar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23

Equity and Liabilities

Shareholders Fund 13,99913,92416,66421,07125,53230,40130,98138,08141,40432,263
Share Capital 3393393391,0161,5241,5241,5241,4521,4191,419
Reserves 13,66013,58516,32520,05524,00828,87629,45636,62839,98530,844
Minority Interest411400000000
Debt47,30733,13915,35018,03220,53526,03639,38639,95941,22963,050
Long Term Debt26,14328,53611,3597,1189,65612,12823,11025,04932,11548,171
Short Term Debt21,1644,6033,99110,91410,87913,90916,27614,9109,11414,879
Trade Payables14,99712,6559,46512,70015,78017,13311,47316,57626,47722,913
Others Liabilities 20,68925,91228,07428,51627,82433,77635,07139,55845,51943,113
Total Liabilities 96,99685,74569,55380,31989,6721,07,3461,16,9101,34,1741,54,6291,61,340

Fixed Assets

Gross Block57,81367,39136,90842,33846,92752,86263,13668,55479,34293,821
Accumulated Depreciation18,84721,9662,8215,4618,23211,22114,18517,64220,97025,014
Net Fixed Assets38,96645,42534,08636,87638,69541,64248,95250,91258,37268,807
CWIP 6,1573,9501,9141,8674,0119,51917,17025,33628,90725,607
Investments 5,6916,1139,18511,77312,88214,29714,39615,09318,86723,689
Inventories24,88816,04513,35518,62918,61220,44419,32628,76435,51529,575
Trade Receivables6,3024,0713,7764,0925,5875,6683,9346,8706,3406,832
Cash Equivalents 2,1792,2361541361,290219223575258672
Others Assets12,8147,9067,0826,9458,59515,55912,9096,6246,3696,156
Total Assets 96,99685,74569,55380,31989,6721,07,3461,16,9101,34,1741,54,6291,61,340

Cash Flow

(All Figures are in Crores.)
PARTICULARSMar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23
Cash Flow From Operating Activity 7,00719,4106,65110,25411,0378,5545,46917,82915,810-3,466
PBT 1,3252,2316,73511,19710,11010,0391,37414,1979,144-9,984
Adjustment 5,6223,4412,7135751,9823,0235,0753,9232,9705,359
Changes in Working Capital 47914553-1582662942-2425742289451481319
Tax Paid -419-811-1,215-2,180-1,997-2,082-1,723-3,185-1,451-160
Cash Flow From Investing Activity -5,152-5,667-4,272-5,304-7,398-11,382-14,168-12,279-13,745-11,384
Capex -5,944-6,312-4,824-5,854-6,703-11,267-13,794-11,607-12,028-9,344
Net Investments 1911187295-1,417-735-932-1,372-2,612-3,228
Others 6015274804557226205587018951,188
Cash Flow From Financing Activity -1,256-14,699-3,674-4,239-4,4232,5988,452-4,709-2,06616,025
Net Proceeds from Shares -233-100000000
Net Proceeds from Borrowing 6,7364,311-1,622-7,054-2802,5329,7669029,48114,683
Interest Paid -2,475-1,831-698-590-508-848-1,286-1,599-1,720-3,240
Dividend Paid -338-617-1,749-4,177-2,792-1,653-1,725-1,484-3,223-1,986
Others -4,947-16,5613957,582-8432,5671,698-2,528-6,6046,568
Net Cash Flow 600-956-1,295712-784-230-247841-11,175
PARTICULARSMar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23
Ratios
ROE (%)7.9810.9131.0443.6530.9823.928.630.8818.35-18.95
ROCE (%)6.147.2616.7228.7923.6620.413.7619.7212.28-8.41
Asset Turnover Ratio2.62.522.572.892.93.042.592.172.592.95
PAT to CFO Conversion(x)6.4913.041.421.251.531.282.071.672.17N/A
Working Capital Days
Receivable Days9877776765
Inventory Days34322727282425323125
Payable Days25252625272421262421

Hindustan Petroleum Corporation Ltd Stock News

Hindustan Petroleum Corporation Ltd FAQs

Company share prices are keep on changing according to the market conditions. The closing price of HPCL on 12-Apr-2024 10:20 is ₹482.2.
Market capitalization or market cap is determined by multiplying the current market price of a company's shares with the total number of shares outstanding. As of 12-Apr-2024 10:20 the market cap of HPCL stood at ₹69,161.3.
The latest P/E ratio of HPCL as of 12-Apr-2024 10:20 is 4.59.
The latest P/B ratio of HPCL as of 12-Apr-2024 10:20 is 1.74.
The 52-week high of HPCL is ₹594.5 and the 52-week low is ₹222.3.
The TTM revenue is Trailing Twelve Months sales. The TTM revenue/sales of HPCL is ₹4,52,927 ( Cr.) .

About Hindustan Petroleum Corporation Ltd

Hindustan Petroleum Corporation Ltd. (HPCL) is a Maharatna CPSE. It had originally been incorporated as a company under the Indian Companies Act 1913. HPCL owns & operates 2 major refineries producing a wide variety of petroleum fuels & specialties, one in Mumbai (West Coast) and the other in Visakhapatnam, (East Coast). HPCL also owns and operates the largest Lube Refinery in the country producing Lube Base Oils of international standards. This Lube Refinery accounts for over 40% of the India's total Lube Base Oil production. HPCL in collaboration with M/s Mittal Energy Investments is operating Refinery at Bathinda.  HPCL has set-up its prestigious ‘HP Green R&D Centre’ at Bengaluru, India in 2016 with an objective to develop innovative & path breaking technologies and products.

HPCL is committed to achieve the economic, ecological & social responsibility objectives of sustainable development consistently through varied operations and activities. HPCL’s focus areas are in the fields of Child Care, Education, Health Care, Skill Development & Community Development, touching lives of weaker section of society.

Currently, the company provides fueling services to the aviation industry through its business unit, ‘HP Aviation’ also fondly called ‘Hindustan Aviation’. Its network covers all the major airports in India and is continuously expanding. HP Retail Business unit of HPCL is engaged in making available automotive fuels/ lubricants and other value added services for the automobile / private transport sector across the country, through a dedicated network of Retail Outlets, commonly known as Petrol Pumps.

The Retail unit is so named, as it involves dispensing fuels of relatively smaller volumes to the vehicle fuel tank. HPCL has laid pipelines for transportation of Petroleum Products to ensure product availability to its Consumers and the Public at large. City Gas Distribution (CGD), HPCL is operating City Gas Distribution (CGD) networks in several Geographical Areas (GAs) in the states of Andhra Pradesh, Telangana and Madhya Pradesh through Joint Venture companies Aavantika Gas Limited (AGL), Bhagyanagar Gas Limited (BGL) and Godavari Gas (GGPL). HPCL is also operating a CNG network in Ahmedabad on standalone basis.

Business area of company

The Company is engaged in the business of refining of crude oil and marketing of petroleum products, Aviation Bulk Fuels And Specialities, International Trade, LPG (HP Gas), Lubes (HP Lubes), Retail (Petrol Pumps, etc.), Exploration & Production, Alternate Energy. The company (as Esso and Caltex prior to 1974) has been providing aviation refueling services at various airports in India for more than half a century.

Awards and achievements

2014

  • HPCLs Mumbai Refinery bagged the coveted 'National Energy Conservation Award (First prize)' in the Refinery Sector for the year 2014.
  • HPCL bagged the Platts Top 250 Global Energy Award.

2016

  • Hindustan Petroleum Corporation Ltd received Golden Peacock Award 2016.

2018

  • Industrial Innovation Award 2018 to HPCL R&D Centre, Bengaluru by Confederation of Indian Industries (CII).
  • Forecourt Retailer of the Year award for the 11th time at Star Retailer Awards 2018.
  • Vigilance Excellence Award 2018 in the outstanding category for ‘Best Institutional Practices’ by Central Vigilance Commission (CVC).
  • Emerging Brand Award to ‘poWer 99’ at Times Network National Marketing Excellence Awards 2018.
  • Award for Best Payments Technology / Initiative of the Year for HP Re-Fuel Program and Most Disruptive Payments Technology of the Year for HP Fastlane at Payments & Cards Summit 2018
  • Best Innovation in R&D commendation MoP&NG for ‘Diesel Lubricity Additive’ and ‘HP-CORMIT’ for the year 2017-18.
  • Green Supply Chain Company for 2018” at Express Logistics & Supply Chain Leadership Awards

2019

  • Best Navratna award in ‘Manufacturing Sector’ category by M/s Dun & Bradstreet.
  • Company of the Year for Excellence in Human Resource Management award by Federation of Indian Petroleum Industry (FIPI).
  • Reader’s Digest Trusted Brand 2019 award in Petrol Station category.
  • Asia’s   Most   Trusted   Brand 2019 Conferred to HP Gas by International Brand Consulting Corporation.
  • FICCI Award for HP 2 FCC catalyst under ‘Product Innovator of the Year in Petrochemicals’ category.
  • Outstanding Performer on BSEBOND Platform award under the category ‘PSU Issuer’ conferred by BSE (Bombay Stock Exchange) India.

Milestones:

1952

  • The company was incorporated in the name of Standard Vacuum Refining Company of India Limited on July 5, 1952.

1962

  • On 31st March, the name was changed to ESSO Standard Refining Company of India Limited.

1974

  • Hindustan Petroleum Corporation Limited comes into being after the takeover and merger of erstwhile Esso and Lube India Undertaking.

1976

  • Caltex Oil Refining Ltd is taken over by the Government of India and subsequently merged with HPCL in 1978.

1979

  • Kosan Gas Company, the concessionaries of HPCL in the domestic LPG market, are taken over and merged with HPCL.

2013

  • A Memorandum of Understanding (MOU) was signed between Government of Rajasthan (GOR) and Hindustan Petroleum Corporation Limited (HPCL) for setting up a state-of-the-art 9 MMTPA refinery-cum-petrochemical complex in Barmer District of Rajasthan.
  • HPCL to enter into a 50:50 joint venture with Shapoorji Pallonji Group for LNG terminal for import of liquid gas (LNG) on Gujarat coast.
  • Launches of 5 Kg LPG Cylinder Sale through COCO ROs in Hyderabad.
  • HPCL has been bestowed with the Golden Peacock Award for Excellence in Corporate Governance for the year 2013 by Institute of Directors.
  • HPCL signs MoU with MOP&NG, Govt. of India for FY 2013-14.

2014

  • HPCL Inaugurates KSP on World’s Highest Motorable Road.
  • HPCL has signed a fresh Memorandum of Understanding with R&T Agents Link Intime India Pvt. Ltd.
  • HPCL acquires two gas blocks in Australia for AUD 85 mn.

2015

  • Hindustan Petroleum Corporation Ltd (HPCL) approved the proposal for implementation of capacity expansion of the company's Mumbai refinery from 7.5 MMTPA to 9.5 MMTPA.
  • Hindustan Petroleum Corporation Limited's HP Nagar East Colony, Mumbai has been awarded a PLATINUM RATING.
  • ‘HP-HiGAS Unit’, a new commercial scale unit developed based on HPCL R&D technology at Visakh Refinery inauguration done.
  • Oil Marketing Companies commenced marketing of Bio-Fuel blended High Speed Diesel (B-5 Diesel) in select retail outlets of the country.

2016

  • Hindustan Petroleum Corporation acquisition of shares of Petronet MHB Ltd. From Petronet India Ltd.

2019

  • Hindustan Petroleum Corporation has entered into a two-year memorandum of understanding (MoU) with Energy Efficiency Services, a joint venture of four national public sector enterprises under the Ministry of Power, for setting up public charging infrastructure as part of the National Electric Mobility Programme.

2020

  • Hindustan Petroleum Corporation has collaborated with Indian Army to implement the third batch of ambitious project - ‘Kashmir Super 30 (Medical)’.
  • Hindustan Petroleum Corporation has actively participated in the ‘Jan Andolan’ launched by Prime Minister to promote appropriate Covid-19 behavior viz. wearing of masks, hand hygiene and maintaining social distance.
  • Hindustan Petroleum Corporation has commissioned its first petrol pump in Bhutan as it makes a foray into the Himalayan Kingdom.
  • Hindustan Petroleum Corporation has launched HP PAY application for the convenience of customers, to promote Digital transactions.
  • Hindustan Petroleum Corporation has introduced for the first time ever, branded MTO in barrels ‘HP Shine’, for catering to the demand of the unorganised paint and allied industry.
  • Hindustan Petroleum Corporation has set up its first electric vehicle charging facility in Vadodara in the state Gujarat.
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