NSEI:HINDPETRO

Stock Analysis Report

Hindustan Petroleum

Executive Summary

Hindustan Petroleum Corporation Limited refines and markets petroleum products in India and internationally.

Snowflake

Fundamentals

Established dividend payer with adequate balance sheet.


Similar Companies

Share Price & News

How has Hindustan Petroleum's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

1.8%

HINDPETRO

5.6%

IN Oil and Gas

3.9%

IN Market


1 Year Return

45.4%

HINDPETRO

14.6%

IN Oil and Gas

6.0%

IN Market

Return vs Industry: HINDPETRO exceeded the Indian Oil and Gas industry which returned 14.6% over the past year.

Return vs Market: HINDPETRO exceeded the Indian Market which returned 6% over the past year.


Shareholder returns

HINDPETROIndustryMarket
7 Day1.8%5.6%3.9%
30 Day25.0%18.1%7.8%
90 Day7.4%9.4%2.5%
1 Year54.3%45.4%18.0%14.6%8.2%6.0%
3 Year23.2%4.7%51.5%35.9%23.0%16.7%
5 Year238.1%168.2%70.3%43.4%43.5%30.0%

Price Volatility Vs. Market

How volatile is Hindustan Petroleum's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Hindustan Petroleum undervalued compared to its fair value and its price relative to the market?

8.57x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Undervalued: HINDPETRO (₹313.85) is trading above our estimate of fair value (₹311.78)

Significantly Undervalued: HINDPETRO is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: HINDPETRO is good value based on its PE Ratio (8.6x) compared to the Oil and Gas industry average (12.6x).

PE vs Market: HINDPETRO is good value based on its PE Ratio (8.6x) compared to the Indian market (13.3x).


Price to Earnings Growth Ratio

Low PEG Ratio: HINDPETRO is good value based on its PEG Ratio (0.8x)


Price to Book Ratio

PB vs Industry: HINDPETRO is overvalued based on its PB Ratio (1.6x) compared to the IN Oil and Gas industry average (1.2x).


Next Steps

Future Growth

How is Hindustan Petroleum forecast to perform in the next 1 to 3 years based on estimates from 15 analysts?

10.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: HINDPETRO's forecast earnings growth (10.3% per year) is above the savings rate (7.6%).

Earnings vs Market: HINDPETRO's earnings (10.3% per year) are forecast to grow slower than the Indian market (18.2% per year).

High Growth Earnings: HINDPETRO's earnings are forecast to grow, but not significantly.

Revenue vs Market: HINDPETRO's revenue (3.2% per year) is forecast to grow slower than the Indian market (11.3% per year).

High Growth Revenue: HINDPETRO's revenue (3.2% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: HINDPETRO's Return on Equity is forecast to be low in 3 years time (19.3%).


Next Steps

Past Performance

How has Hindustan Petroleum performed over the past 5 years?

15.9%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: HINDPETRO's earnings have grown by 15.9% per year over the past 5 years.

Accelerating Growth: HINDPETRO's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: HINDPETRO had negative earnings growth (-21.3%) over the past year, making it difficult to compare to the Oil and Gas industry average (10.3%).


Return on Equity

High ROE: HINDPETRO's Return on Equity (18.4%) is considered low.


Return on Assets

ROA vs Industry: HINDPETRO's Return on Assets is below or equal to the Oil and Gas industry average last year.


Return on Capital Employed

ROCE Improving: HINDPETRO's Return on Capital Employed has declined over the past 3 years.


Next Steps

Financial Health

How is Hindustan Petroleum's financial position?


Financial Position Analysis

Short Term Liabilities: HINDPETRO's short term assets (₹434.7B) do not cover its short term liabilities (₹571.2B)

Long Term Liabilities: HINDPETRO's short term assets (434.7B) exceeds its long term liabilities (197.4B)


Debt to Equity History and Analysis

Debt Level: HINDPETRO's debt to equity ratio (92.7%) is considered high

Reducing Debt: HINDPETRO's debt to equity ratio has reduced from 322.6% to 92.7% over the past 5 years.

Debt Coverage: HINDPETRO's debt is well covered by operating cash flow (30.3%).

Interest Coverage: HINDPETRO earns more interest than it pays, so coverage of interest payments is not a concern.


Balance Sheet

Inventory Level: HINDPETRO has a high level of physical assets or inventory.

Debt Coverage by Assets: HINDPETRO's debt is covered by short term assets (assets are 1.541770x debt).


Next Steps

Dividend

What is Hindustan Petroleum's current dividend yield, its reliability and sustainability?

5.07%

Current Dividend Yield


Dividend Yield vs Market

company5.1%marketbottom25%0.6%markettop25%2.4%industryaverage2.4%forecastin3Years4.9%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: HINDPETRO's dividend (5.07%) is higher than the bottom 25% of dividend payers in the Indian market (0.6%).

High Dividend: HINDPETRO's dividend (5.07%) is in the top 25% of dividend payers in the Indian market (2.42%)

Stable Dividend: HINDPETRO's dividend payments have been volatile in the past 10 years.

Growing Dividend: HINDPETRO's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (43.4%), HINDPETRO's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: HINDPETRO's dividends in 3 years are forecast to be well covered by earnings (34% payout ratio).


Next Steps

Management

What is the CEO of Hindustan Petroleum's salary, the management and board of directors tenure and is there insider trading?

2.2yrs

Average management tenure


CEO

Mukesh Surana (57yo)

3.5yrs

Tenure

₹10,003,000

Compensation

Mr. Mukesh Kumar Surana has been the Chairman and Managing Director of Hindustan Petroleum Corporation Limited since April 1, 2016. Mr. Surana served as the Chief Executive Officer of Prize Petroleum Compa ...


CEO Compensation Analysis

Compensation vs. Market: Insufficient data to establish whether Mukesh's total compensation is reasonable compared to companies of similar size in the Indian market.

Compensation vs Earnings: Mukesh's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.


Management Age and Tenure

2.2yrs

Average Tenure

57yo

Average Age

Experienced Management: HINDPETRO's management team is considered experienced (2.2 years average tenure).


Board Age and Tenure

2.7yrs

Average Tenure

57yo

Average Age

Experienced Board: HINDPETRO's board of directors are not considered experienced ( 2.7 years average tenure), which suggests a new board.


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown


Management Team

  • Rakesh Misri (57yo)

    Executive Director

    • Tenure: 0yrs
  • Mukesh Surana (57yo)

    Chairman & MD

    • Tenure: 3.5yrs
    • Compensation: ₹10.00m
  • Anil Pande (59yo)

    Executive Director of Operations

    • Tenure: 0yrs
  • Pushp Joshi (55yo)

    Director of Human Resources & Whole Time Director

    • Tenure: 7.2yrs
    • Compensation: ₹12.09m
  • R. Kesavan (57yo)

    CFO, Director of Finance & Director

    • Tenure: 0.8yrs
    • Compensation: ₹3.54m
  • Vinod Shenoy (57yo)

    Director of Refineries & Whole Time Director

    • Tenure: 2.9yrs
    • Compensation: ₹8.12m
  • G. Chiranjeevi

    Chief General Manager of Special Projects

    • Tenure: 0yrs
  • Iyer Narayanan

    Chief General Manager of Legal

    • Tenure: 0yrs
  • Sushanta Dhar

    Chief General Manager of Administration & Real Estate

    • Tenure: 0yrs
  • V. Murali (53yo)

    Compliance Officer & Company Secretary

    • Tenure: 0.8yrs
    • Compensation: ₹4.94m

Board Members

  • Rakesh Misri (57yo)

    Executive Director

    • Tenure: 0yrs
  • Mukesh Surana (57yo)

    Chairman & MD

    • Tenure: 3.5yrs
    • Compensation: ₹10.00m
  • Pushp Joshi (55yo)

    Director of Human Resources & Whole Time Director

    • Tenure: 7.2yrs
    • Compensation: ₹12.09m
  • R. Kesavan (57yo)

    CFO, Director of Finance & Director

    • Tenure: 0.8yrs
    • Compensation: ₹3.54m
  • Vinod Shenoy (57yo)

    Director of Refineries & Whole Time Director

    • Tenure: 2.9yrs
    • Compensation: ₹8.12m
  • Ram Jain (68yo)

    Independent Director

    • Tenure: 3.9yrs
    • Compensation: ₹1.22m
  • Amar Sinha (62yo)

    Independent Director

    • Tenure: 2.1yrs
    • Compensation: ₹1.27m
  • Asifa Khan (54yo)

    Independent Director

    • Tenure: 2.7yrs
    • Compensation: ₹910.00k
  • G. Krishna (56yo)

    Independent Director

    • Tenure: 2.7yrs
    • Compensation: ₹1.02m
  • Trilok Singh (57yo)

    Independent Director

    • Tenure: 2.6yrs
    • Compensation: ₹880.00k

Company Information

Hindustan Petroleum Corporation Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Hindustan Petroleum Corporation Limited
  • Ticker: HINDPETRO
  • Exchange: NSEI
  • Founded: 1952
  • Industry: Oil and Gas Refining and Marketing
  • Sector: Energy
  • Market Cap: ₹478.252b
  • Shares outstanding: 1.52b
  • Website: https://www.hindustanpetroleum.com

Number of Employees


Location

  • Hindustan Petroleum Corporation Limited
  • Petroleum House
  • 17, Jamshedji Tata Road
  • Mumbai
  • Maharashtra
  • 400020
  • India

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
500104BSE (Mumbai Stock Exchange)YesEquity SharesININRJun 1998
HINDPETRONSEI (National Stock Exchange of India)YesEquity SharesININRJun 1998

Biography

Hindustan Petroleum Corporation Limited refines and markets petroleum products in India and internationally. The company operates through Downstream Petroleum and Others segments. It offers petrol, diesel, ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/19 12:40
End of Day Share Price2019/10/18 00:00
Earnings2019/06/30
Annual Earnings2019/03/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.