Hindustan Petroleum Corporation Ltd has shown an inconsistent trend in YoY Net Profit Growth (%) in the last 11 years from 2013-2014 to 2023-2024.
Growth
Compounded Sales Growth
10 Years:
6%
5 Years:
10%
3 Years:
23%
TTM:
-1%
Compounded Profit Growth
10 Years:
31%
5 Years:
19%
3 Years:
14%
TTM:
18%
Stock Price CAGR
10 Years:
18%
5 Years:
14%
3 Years:
22%
1 Year:
130%
Return on Equity
10 Years:
21%
5 Years:
17%
3 Years:
14%
Last Year:
40%
Last Updated: Unknown
Balance Sheet
Last Updated: Unknown
Month
Mar 2013
Mar 2014
Mar 2015
Mar 2016
Mar 2017
Mar 2018
Mar 2019
Mar 2020
Mar 2021
Mar 2022
Mar 2023
Mar 2024
Equity Capital
339
339
339
339
1,016
1,524
1,524
1,524
1,452
1,419
1,419
1,419
Reserves
13,254
13,660
13,585
16,325
20,055
24,008
28,876
29,456
36,628
39,985
30,844
45,502
Borrowings
45,737
47,995
36,916
22,160
22,130
21,952
28,192
44,001
43,709
48,498
70,671
66,684
Other Liabilities
32,946
35,002
34,905
30,729
37,127
42,197
48,762
41,935
52,438
64,774
59,034
69,205
Total Liabilities
92,276
96,996
85,745
69,553
80,329
89,681
107,354
116,918
134,228
154,676
161,968
182,810
Fixed Assets
35,736
38,966
45,425
33,678
36,876
38,695
41,642
48,952
50,912
58,126
68,387
79,763
CWIP
6,565
6,157
3,950
1,914
1,867
4,011
9,519
17,170
25,336
28,907
25,607
20,078
Investments
6,428
5,691
6,113
9,185
11,773
12,882
14,297
14,396
15,093
18,867
23,689
29,540
Other Assets
43,547
46,183
30,257
24,776
29,811
34,094
41,896
36,400
42,887
48,775
44,284
53,429
Total Assets
92,276
96,996
85,745
69,553
80,329
89,681
107,354
116,918
134,228
154,676
161,968
182,810
Reserves and Borrowings Chart
Cash Flow
Month
Mar 2013
Mar 2014
Mar 2015
Mar 2016
Mar 2017
Mar 2018
Mar 2019
Mar 2020
Mar 2021
Mar 2022
Mar 2023
Mar 2024
Cash from Operating ActivityÂ
1,715
7,007
19,410
6,651
10,254
11,037
8,554
5,469
17,829
15,810
-3,466
23,852
Cash from Investing ActivityÂ
-5,255
-5,152
-5,667
-4,272
-5,304
-7,398
-11,382
-14,168
-12,279
-13,745
-11,384
-13,019
Cash from Financing ActivityÂ
2,577
-1,256
-14,699
-3,674
-4,239
-4,423
2,598
8,452
-4,709
-2,066
16,025
-16,155
Net Cash Flow
-962
600
-956
-1,295
712
-784
-230
-247
841
-1
1,175
-5,322
Free Cash Flow
Month
Mar 2013
Mar 2014
Mar 2015
Mar 2016
Mar 2017
Mar 2018
Mar 2019
Mar 2020
Mar 2021
Mar 2022
Mar 2023
Mar 2024
Free Cash Flow
-42.00
-42.00
-32.00
-14.00
-12.00
-11.00
-17.00
-39.00
-27.00
-38.00
-77.00
-42.00
Free Cash Flow = Income Generated from Operational Activities - Borrowings - Capital Work in Progress (CWIP)
Consistent positive free cash flow is crucial for businesses as it indicates their ability to generate cash from their core operations. It provides financial flexibility, allowing companies to invest in growth opportunities, pay dividends to shareholders, reduce debt, and weather economic downturns more effectively.
Fair Value of Hindustan Petroleum Corporation Ltd as of October 11, 2024 is: ₹794.81
Calculation basis:
Fair value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100)
P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance.
Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.
This formula allows us to gauge the fair value of the stock by analyzing its fundamental indicators.
As of October 11, 2024, Hindustan Petroleum Corporation Ltd is Undervalued by 102.76% compared to the current share price ₹392.00
Intrinsic Value of Hindustan Petroleum Corporation Ltd as of October 11, 2024 is: ₹786.87
Calculation basis:
Intrinsic value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100) * (1 + EPS CAGR for Last 5 Years)
P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance.
Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.
EPS CAGR (Compound Annual Growth Rate): Represents the geometric mean growth rate of earnings per share over the last 5 years. It provides insight into the historical growth trajectory of the company's earnings.
This formula allows us to gauge the intrinsic value of the stock by analyzing its fundamental indicators along with EPS growth.
As of October 11, 2024, Hindustan Petroleum Corporation Ltd is Undervalued by 100.73% compared to the current share price ₹392.00
Last 5 Year EPS CAGR: -1.00%
*Investments are subject to market risks
Strength and Weakness
Strength
Weakness
The stock has a low average Working Capital Days of -3.75, which is a positive sign.
The company has shown consistent growth in sales (283.31 cr) and profit (74.54 cr) over the years.
The stock has a low average ROCE of 13.00%, which may not be favorable.
The stock has a high average Cash Conversion Cycle of 18.17, which may not be favorable.
The company has higher borrowings (41,553.75) compared to reserves (26,014.83), which may suggest financial risk.
Stock Analysis
Considering all of the following key financial indicators, prospective investors are encouraged to conduct thorough research and seek professional guidance before considering any investment in Hindustan Petroleum Corporation Ltd:
Net Profit Margin: This metric indicates the percentage of profit a company makes from its total revenue. A higher net profit margin is generally desirable as it reflects better profitability.
ROCE (Return on Capital Employed): ROCE measures a company's profitability and the efficiency with which its capital is employed. A higher ROCE indicates efficient use of capital.
ROE%: 34.13% (Industry Average ROE: 30.96%)
ROE (Return on Equity): ROE measures a company's profitability relative to shareholders' equity. A higher ROE indicates efficient use of shareholders' funds.
Interest Coverage Ratio: The interest coverage ratio measures a company's ability to cover its interest payments on outstanding debt. A ratio greater than 2 is generally considered healthy as it indicates the company can meet its interest obligations comfortably.
Quick Ratio: The quick ratio assesses a company's ability to cover its short-term liabilities with its most liquid assets. A ratio higher than 1 suggests the company can meet its short-term obligations without relying heavily on inventory.
Stock P/E: 8.45 (Industry average Stock P/E: 11.24)
Stock P/E (Price-to-Earnings) Ratio: The P/E ratio compares a company's current share price to its earnings per share. A lower P/E ratio relative to industry peers or historical values may indicate that the stock is undervalued.
Total Debt / Equity: 1.34
Total Debt / Equity: This ratio measures a company's financial leverage by comparing its total debt to its total equity. A lower ratio indicates lower financial risk and greater financial stability.
The current analysis is available for review. It's important to conduct thorough research and consider consulting with financial professionals before making any investment decisions. Stock Rating:
About the Company - Qualitative Analysis
Hindustan Petroleum Corporation Ltd. is a Public Limited Listed company incorporated on 05/07/1952 and has its registered office in the State of Maharashtra, India. Company’s Corporate Identification Number(CIN) is L23201MH1952GOI008858 and registration number is 008858. Currently Company is involved in the business activities of Electric power generation using solar energy. Company’s Total Operating Revenue is Rs. 349682.93 Cr. and Equity Capital is Rs. 1418.94 Cr. for the Year ended 31/03/2022.
Getaka, CFA, a financial analyst with 15 years of experience in the industry. Getaka holds an MBA degree and the Chartered Financial Analyst designation, demonstrating his profound understanding of financial analysis and investment management. Throughout his career, he has conducted numerous financial analyses and due diligence processes for companies in the industry, and has a strong track record of identifying key trends and opportunities. He leverages his expertise to deliver a thorough financial analysis of a company, encompassing its financial performance, key ratios, future prospects, and risks. Getaka is committed to providing accurate, reliable, and trustworthy information to help readers make informed decisions about their finances and investments.
Disclaimer: This article is for informational purposes only and should not be construed as financial advice. The author is not a SEBI registered financial advisor and does not have any vested interest in Hindustan Petroleum Corporation Ltd. Investors are advised to conduct their own due diligence and consult with a financial professional before making any investment decisions. The information provided in this article is based on publicly available data and the author's analysis, but it may not be comprehensive or up-to-date. The author and getaka.co.in are not responsible for any errors or omissions in the content. This article is not intended to promote any particular investment strategy or recommendation, and readers should consult with their own financial advisors before making any investment decisions. Data Source: NSE
Manage Consent
We use technologies like cookies to store and/or access device information. We do this to improve browsing experience and to show (non-) personalized ads. Consenting to these technologies will allow us to process data such as browsing behavior or unique IDs on this site. Not consenting or withdrawing consent, may adversely affect certain features and functions.
Functional
Always active
The technical storage or access is strictly necessary for the legitimate purpose of enabling the use of a specific service explicitly requested by the subscriber or user, or for the sole purpose of carrying out the transmission of a communication over an electronic communications network.
Preferences
The technical storage or access is necessary for the legitimate purpose of storing preferences that are not requested by the subscriber or user.
Statistics
The technical storage or access that is used exclusively for statistical purposes.The technical storage or access that is used exclusively for anonymous statistical purposes. Without a subpoena, voluntary compliance on the part of your Internet Service Provider, or additional records from a third party, information stored or retrieved for this purpose alone cannot usually be used to identify you.
Marketing
The technical storage or access is required to create user profiles to send advertising, or to track the user on a website or across several websites for similar marketing purposes.
