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Fundamentals for Hindustan Petroleum Corporation Limited
Business Operations:
Sector: EnergyIndustry: Oil & Gas Refining & Marketing
Hindustan Petroleum Corporation Limited, together with its subsidiaries, engages in the refining and marketing of petroleum products in India and internationally. It operates through Downstream Petroleum and All Other segments. The company provides light distillates, including motor spirits, naphtha, hexane, propylene, and solvents, as well as domestic, industrial, and commercial liquefied petroleum gas (LPG); and middle distillates comprising high speed diesel, superior kerosene oil (SKO), light diesel oil (LDO), aviation turbine fuels, mineral turpentine oil, jute batch oil, and lube and turbine oil base stocks. It also offers heavy distillates, such as bitumen, furnace oil, and low sulphur heavy stock; and compressed natural gas (CNG), liquefied natural gas (LNG), lubricants, greases, bulk fuels, jet and marine fuel, biofuel blended fuels, and petrochemicals. In addition, the company is involved in the exploration and production of oil and gas; operation of automobile refueling and electric vehicle (EV) charging stations; generation of electricity through wind and solar plants; provision of management services for exploration and production blocks; and operation of sugar ethanol-cogen plants. As of March 31, 2024, it operated through a marketing network of 22,022 retail outlets; 6,349 LPG distributors; 1,690 CNG facilities; 5 lube blending plants; 1,638 SKO/LDO dealerships; 474 lube distributors; 145 regional offices; 78 terminals/TOPs and depots; 56 LPG bottling plants; 2 LPG import locations; 55 aviation service facilities; 817 door delivery dispensers; 36 exclusive lube depots; 17 product pipelines; and 3,603 EV charging facilities at retail outlets. The company was founded in 1910 and is headquartered in Mumbai, India. Hindustan Petroleum Corporation Limited operates as a subsidiary of Oil and Natural Gas Corporation Limited.
Revenue projections:
Investors may be wary of HINDPETRO as its revenues are expected to fall below the prior year's levels. A revenue decrease often leads to concerns about profitability, as it is likely to affect the company's bottom line, prompting investors to take a more cautious approach.
Financial Ratios:
| currentRatio | 0.642000 |
|---|---|
| forwardPE | 7.473978 |
| debtToEquity | 85.369000 |
| earningsGrowth | 0.775000 |
| revenueGrowth | 0.049000 |
| grossMargins | 0.123370 |
| operatingMargins | 0.080810 |
| trailingEps | 84.800000 |
| forwardEps | 54.723200 |
HINDPETRO's current ratio of 0.642 signals that the company may not have sufficient cash reserves and current assets to cover short-term debt. This suggests potential liquidity problems and could raise concerns about the company's ability to meet its immediate financial commitments.
Hindustan Petroleum Corporation Limited's elevated debt-to-equity ratio reflects substantial leverage, meaning the company relies heavily on borrowed funds. This could increase financial risk, particularly in times of economic uncertainty or if the company's profitability declines.
HINDPETRO's forward EPS is lower than its trailing EPS, indicating the company may experience reduced profitability. This signals that the company's earnings growth could slow down in the near future.
Price projections:
The price of Hindustan Petroleum Corporation Limited has regularly been close to the lower end of projections, suggesting that it might be struggling to meet market expectations. This trend raises questions about the company's future performance.
Recommendation changes over time:
A recent buy bias from analysts toward Hindustan Petroleum Corporation Limited indicates strong confidence in the stock's future performance. This could encourage investors to park their money in Hindustan Petroleum Corporation Limited, viewing it as a stable and potentially rewarding investment opportunity with promising long-term growth prospects.
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