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Hindustan Oil Exploration Company Ltd. Stock Analysis

Small Cap
Evaluated by 1182 users | BSE: 500186 | NSE: HINDOILEXP |
Oil Exploration
Hindustan Oil Exploration Company (HOEC) was incorporated in 1983 for taking up Exploration and Production (E&P) activities by Late H T Parekh. HOEC was the first private company in India to enter into field of oil and gas exploration. HOEC’s operational activities commenced in 1991...

Analysis of Financial Track Record

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.
Value Creation
 Mar'11Mar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20
Return on Capital Employed 5.04%2.38%-8.32%-7.53%-45.46%1.11%5.13%10.95%33.24%23.35%
Growth Parameters
Growth Parameters Colour Code Guide
Net Sales (Rs. Cr.) 33015110959.940.328.32548.7237180
Y-o-Y Gr. Rt.--54.1%-28.3%-44.9%-32.7%-29.7%-11.7%94.7%386.3%-24.1%
Adjusted EPS (Rs.) 6.132.67-11.22-9.44-31.23-0.011.232.911.310.21
Y-o-Y Gr. Rt.--56.4%-520.2%NANANANA135.8%289.7%-9.7%
Book Value per Share (Rs.) 89.9892.5250.340.520.8422.6125.3928.6240.0350.29
Adjusted Net Profit 8034.8-146-123-407-0.116.137.8148135
Net Op. Cash Flow (Rs. Cr.) 16363.175.11910.890.998.4-6.8159192
Debt to Cash Flow from Ops 3.619.3611.7949.88000000
Standalone financials take only the parent company into account while consolidated financials take into account financials of the parent company as well as of all its subsidiaries. In most companies consolidated financials should be used for analysis.
Hindustan Oil Exploration Company Ltd. should be analysed on a Standalone basis
CAGR
CAGR Colour Code Guide
  9 yrs 5 yrs 3 yrs 1 yr
Net Sales -6.5%34.9%93%-24.1%
Adjusted EPS 5.8%NA102.5%-9.7%
Book Value per Share -6.319.325.625.6
Share Price -5.2% 18% -15.4% -16.4%
Key Financial Parameter
Performance Ratio Colour Code Guide
 Mar'11Mar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20
Return on Equity (%) 7.032.93-15.71-20.78-101.81-0.045.1310.7332.9322.74
Operating Profit Margin (%) 68.5957.7847.63-58.03-27.221.8314.8564.3673.7867.95
Net Profit Margin (%) 24.2523.01-134.75-205.75-1011.37-0.4464.1777.6662.2775.06
Debt to Equity 0.50.491.351.79000000
Working Capital Days 3158131,3592,2882,4862,7301,837771199374
Cash Conversion Cycle 32136160268241200194382265
Entity Percentage Holding
Institutions 3.44%
Non-Institutions 96.56%
Pledged *0.000.000.000.000.000.000.000.000.000.00
* Pledged shares as % of Promoter's holding (%)
Data is not available for this company.

The 5-year analysis of Hindustan Oil Exploration Company Ltd.'s performance infers:

Hindustan Oil Exploration Company Ltd. earnings have grown by 0%, whereas share price has appreciated 18% CAGR over the past five years, indicating the company's share price is likely overvalued. However, for specific investment actions please connect with your investment advisor.

We analysed the performance of Hindustan Oil Exploration Company Ltd. share prices over the last 10 years. Here is what we found out:

Hindustan Oil Exploration Company Ltd. share price has appreciated -9.6% annually over the past ten years.

Hindustan Oil Exploration Company (HOEC) was incorporated in 1983 for taking up Exploration and Production (E&P) activities by Late H T Parekh. HOEC was the first private company in India to enter into field of oil and gas exploration. HOEC’s operational activities commenced in 1991 with the Government of India announcing the fourth round of exploration bidding for private sector participation.

HOEC is an Operator of 3 blocks in onshore Cambay basin, Gujarat currently under

Hindustan Oil Exploration Company (HOEC) was incorporated in 1983 for taking up Exploration and Production (E&P) activities by Late H T Parekh. HOEC was the first private company in India to enter into field of oil and gas exploration. HOEC’s operational activities commenced in 1991 with the Government of India announcing the fourth round of exploration bidding for private sector participation.

HOEC is an Operator of 3 blocks in onshore Cambay basin, Gujarat currently under production of crude oil and gas since last several years. The three blocks are located at 1. Block CB-ON/7 - Palej Production Facilities [PPF] at village Makan, District Vadodara, Gujarat2. Block North Balol – Gas Collection Station [GCS] at village Palaj, District Mehsana, Gujarat3. Block Asjol – Early Production System [EPS] at village Katosan, District Mehsana, Gujarat

The company has participating interest in seven oil/gas fields in India (in Cambay basin, Cauvery basin and Assam Arakan basin), which are in varying stages of E & P life cycle i.e. exploration, development and production.

HOEC has been under professional management since inception consisting of eminent industrialists, professionals and technocrats like Late Shri B K Nehru, Late Dr  I  G  Patel, Shri Deepak Parekh and the current Chairman Shri R. Vasudevan.

In 2005, Burren Shakti Ltd (BSL) and Burren Energy India Ltd (BEIL), wholly owned subsidiary of Burren Energy plc (Burren), acquired 26% controlling stake in the Company from Unocal. Burren is a London based exploration and production company, having core producing assets in the Caspian state of Turkmenistan, the Republic of Congo and Egypt. In February 2008, Burren was acquired by ENI UK Holdings plc which is a subsidiary of ENI spa, Italy.

The Company has a 100% subsidiary, HOEC Bardahl India Ltd, engaged in marketing of high performance fuel / engine additives.HOEC Bardahl India Limited (HBIL) is the subsidiary of the company - HOEC and Bardahl Manufacturing Corporation Inc., USA, (Bardahl) engaged in the formulation, manufacturing and marketing of Bardahl range of high performance engine additives, conducted a joint marketing study on the sale of such additives in India. The results were quite encouraging, suggesting that this could be a viable project.HOEC and Bardahl have agreed to undertake the new project through HOEC Bardahl India Limited (formerly Hindage Oilfield Services Limited) a wholly owned subsidiary of HOEC.

Recent developments

HOEC has 38.07% non-operating participating interest in the Gulf ‘A’ discovery in the Block CB-OS-1development area has been informed by the Operator (ONGC), that the Directorate General of Hydrocarbons, Ministry of Petroleum and Natural Gas, Government of India has given its approval for  the development plan.

July 17, 2009: Hardy Exploration & Production (India) Inc., the Operator of the PY-3 field has informed the company that due to export hose damage at normor buoy, the production at PY-3 field has been shut down. Efforts are currently ongoing to restart the production. The company has 21% participating interest in the said field.

July 21, 2009: The Block name RJ-ONN-2005/1 and RJ-ONN-2005/2 acquired under NELP VII has been granted Petroleum Exploration License by the Government of Rajasthan.

Oct 16, 2009: The company commenced the production of natural gas from PY-1 field.

 

Puchho Befikar
SEBI Registered: Investment Adviser - INA000013323

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