NSEI:HINDPETRO

Stock Analysis Report

Hindustan Petroleum

Executive Summary

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


Snowflake Analysis

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

Stable Share Price: HINDPETRO's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

8.4%

HINDPETRO

6.7%

IN Oil and Gas

2.2%

IN Market


1 Year Return

-22.1%

HINDPETRO

-24.7%

IN Oil and Gas

-27.6%

IN Market

Return vs Industry: HINDPETRO exceeded the Indian Oil and Gas industry which returned -30.9% over the past year.

Return vs Market: HINDPETRO exceeded the Indian Market which returned -32.1% over the past year.


Shareholder returns

HINDPETROIndustryMarket
7 Day8.4%6.7%2.2%
30 Day-6.2%-9.6%-20.0%
90 Day-21.1%-25.2%-25.9%
1 Year-19.7%-22.1%-22.0%-24.7%-26.1%-27.6%
3 Year-38.6%-44.8%-2.8%-13.6%-15.9%-20.5%
5 Year74.7%38.6%31.7%7.1%-5.7%-10.6%

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?

5.06x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: HINDPETRO (₹184.2) is trading above our estimate of fair value (₹155.94)

Significantly Below Fair Value: 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 (4.7x) compared to the Oil and Gas industry average (6.5x).

PE vs Market: HINDPETRO is good value based on its PE Ratio (4.7x) compared to the Indian market (9.4x).


Price to Earnings Growth Ratio

PEG Ratio: HINDPETRO is good value based on its PEG Ratio (0.3x)


Price to Book Ratio

PB vs Industry: HINDPETRO is overvalued based on its PB Ratio (0.9x) compared to the IN Oil and Gas industry average (0.8x).


Next Steps

Future Growth

How is Hindustan Petroleum forecast to perform in the next 1 to 3 years based on estimates from 12 analysts?

18.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: HINDPETRO's forecast earnings growth (17.8% per year) is above the savings rate (6.5%).

Earnings vs Market: HINDPETRO's earnings (17.8% per year) are forecast to grow slower than the Indian market (19.2% per year).

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

Revenue vs Market: HINDPETRO's revenue (0.1% per year) is forecast to grow slower than the Indian market (8.8% per year).

High Growth Revenue: HINDPETRO's revenue (0.1% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: HINDPETRO's Return on Equity is forecast to be low in 3 years time (17.5%).


Next Steps

Past Performance

How has Hindustan Petroleum performed over the past 5 years?

10.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: HINDPETRO has high quality earnings.

Growing Profit Margin: HINDPETRO's current net profit margins (2.2%) are lower than last year (2.6%).


Past Earnings Growth Analysis

Earnings Trend: HINDPETRO's earnings have grown by 10.5% 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 (-11.9%) over the past year, making it difficult to compare to the Oil and Gas industry average (-17%).


Return on Equity

High ROE: HINDPETRO's Return on Equity (19.9%) is considered low.


Next Steps

Financial Health

How is Hindustan Petroleum's financial position?


Financial Position Analysis

Short Term Liabilities: HINDPETRO's short term assets (₹411.0B) do not cover its short term liabilities (₹562.0B).

Long Term Liabilities: HINDPETRO's short term assets (₹411.0B) exceed its long term liabilities (₹254.4B).


Debt to Equity History and Analysis

Debt Level: HINDPETRO's debt to equity ratio (93.9%) is considered high.

Reducing Debt: HINDPETRO's debt to equity ratio has reduced from 282.4% to 93.9% over the past 5 years.

Debt Coverage: HINDPETRO's debt is well covered by operating cash flow (29.5%).

Interest Coverage: HINDPETRO's interest payments on its debt are well covered by EBIT (141.7x coverage).


Balance Sheet


Next Steps

Dividend

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

7.97%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: HINDPETRO's dividend (8.63%) is higher than the bottom 25% of dividend payers in the Indian market (0.96%).

High Dividend: HINDPETRO's dividend (8.63%) is in the top 25% of dividend payers in the Indian market (4.06%)


Stability and Growth of Payments

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 (40.3%), 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 (37.4% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

1.3yrs

Average management tenure


CEO

Mukesh Surana (57yo)

4s

Tenure

₹10,003,000

Compensation

Mr. Mukesh Kumar Surana serves as Chairman of the Board at Hindustan Colas Private Limited since April 01, 2016. He has been the Chairman and Managing Director of Hindustan Petroleum Corporation Limited si ...


CEO Compensation Analysis

Compensation vs Market: Mukesh's total compensation ($USD131.11K) is below average for companies of similar size in the Indian market ($USD740.34K).

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


Leadership Team

NamePositionTenureCompensationOwnership
Mukesh Surana
Chairman & MD4yrs₹10.00m0.000040% 122.0k
R. Kesavan
CFO, Director of Finance & Director1.25yrs₹3.54mno data
V. Murali
Compliance Officer & Company Secretary1.33yrs₹4.94m0.00023% 701.3k
Pushp Joshi
Director of Human Resources & Whole Time Director7.67yrs₹12.09m0.00018% 548.9k
Vinod Shenoy
Director of Refineries & Whole Time Director3.42yrs₹8.12mno data
Anil Pande
Executive Director of Operationsno datano datano data
Sushanta Dhar
Chief General Manager of Administration & Real Estateno datano datano data
Iyer Narayanan
Chief General Manager of Legalno datano datano data
Rakesh Misri
Director of Marketing & Director0.50yrno datano data
G. Chiranjeevi
Chief General Manager of Special Projectsno datano datano data

1.3yrs

Average Tenure

57yo

Average Age

Experienced Management: HINDPETRO's management team is not considered experienced ( 1.3 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Mukesh Surana
Chairman & MD4yrs₹10.00m0.000040% 122.0k
R. Kesavan
CFO, Director of Finance & Director1.25yrs₹3.54mno data
Pushp Joshi
Director of Human Resources & Whole Time Director7.67yrs₹12.09m0.00018% 548.9k
Vinod Shenoy
Director of Refineries & Whole Time Director3.42yrs₹8.12mno data
Rakesh Misri
Director of Marketing & Director0.50yrno datano data
Siraj Hussain
Independent Director2.58yrs₹840.00kno data
Amar Sinha
Independent Director2.58yrs₹1.27mno data
Subhash Kumar
Part-Time Director Representative of ONGC & Government Nominee Director1.92yrsno datano data
Sunil Kumar
Government Nominee Director0.92yrno datano data
G. Pillai
Independent Director0.75yrno datano data

2.3yrs

Average Tenure

57yo

Average Age

Experienced Board: HINDPETRO's board of directors are not considered experienced ( 2.3 years average tenure), which suggests a new board.


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

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


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

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: ₹304.917b
  • Shares outstanding: 1.52b
  • Website: https://www.hindustanpetroleum.com

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, kerosene, liquefied petroleum gas, naphtha lubricants, specialties, and greases, as well as aviation turbine fuel; and markets and exports bulk fuels, bitumen, solvents, jet and marine fuel, marine lubes, household insecticides, hexane, propylene, jute batch oil, turpentine oil, carbon black feed stock, molten sulphur, and superior kerosene oil (SKO). The company is also involved in international trade activities, including crude oil imports, petroleum product imports/exports, import/export registration, shipping, production planning for refineries, supplies for domestic markets, and product exchange with other Indian oil marketing companies and oil price risk management. In addition, it offers LPG products under the HP Gas brand, as well as markets LPG cylinders for commercial and industrial purposes, and bulk LPG products for industries; and operates retail petrol pumps and pipelines for the transportation of petroleum products. Further, the company explores for and produces hydrocarbons, as well as provides management services for exploration and production blocks; and operates sugar ethanol-cogen plants in Bihar, wind power plants in Maharashtra and Rajasthan, and solar power plant in Haryana. As of March 31, 2019, it operated through a marketing network of 133 regional offices; 68 depots; 49 LPG bottling plants; 43 aviation service facilities; 15,440 retail outlets; 1,638 SKO and light diesel oil dealers; and 5,866 LPG distributors, as well as 42 terminal, installation, and tap off points. The company was incorporated in 1952 and is headquartered in Mumbai, India. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/04/08 13:21
End of Day Share Price2020/04/08 00:00
Earnings2019/12/31
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.