Hindustan Petroleum Corporation Limited Research Report

Hindustan Petroleum Corporation Limited Research Report

Industry

Market Price

Recommendation

Target

Time Horizon

Oil and Gas

237.60

295

Buy

1 Year

 

Q4 FY 2022 Review

Hindustan Petroleum Corporation Limited reported net revenue of ₹1,05,003.85 crores for the quarter ended March 31, 2022, compared to ₹84,965.89 crores for March 31, 2021. EBIT and Profit After Tax were ₹2,276.12 crores and ₹2018.45 crores for the quarter ended 31 March 2022, as compared to ₹4,261.98 crores and ₹3,060.70 crores during the corresponding quarter of the previous year.

 

Hindustan Petroleum Corporation Limited - Investment Summary

CMP (₹)

237.60

52 Week H/L

355/206

Market Cap (crores)

34,166

Face Value (₹)

10.00

Promoter Holding (%)

54.90

Non-Promoter Holding (%)

45.10

Total (%)

100.00

Book Value

₹292

EPS TTM

₹51.36

 

Hindustan Petroleum Corporation Limited – Overview

  • Hindustan Petroleum Corporation Ltd is primarily involved in the refining of crude oil and marketing petroleum products, the production of hydrocarbons, and the management of E&P blocks.

  • HPCL is the country's largest base oil producer, capable of producing Group I, Group II, and Group III base oils.

  • HPCL has a refining capacity share of 10.8%, and owns 21% of India’s petroleum product pipelines.

  • The company has been assigned AAA/Stable (Reaffirmed) credit rating on a long-term bank facility.

 

Hindustan Petroleum Corporation Limited Overview

 

Beta: 0.84

Alpha: -7.50

Risk Reward Ratio: 1.41

The margin of Safety: 19%

 

Hindustan Petroleum Corporation Limited - Quarterly Summary

Quarterly (INR in lakhs)

Mar-22

Dec-21

Sep-21

Jun-21

Mar-21

Revenue from Operations

1,05,350.49

1,03,488.75

87,654

77,634

85,264.77

 

          

Other income

1183.35

477.75

431

347

490

Total Income

1,06,534

1,03,966.5

88,085.42

77,980

85,754.76

 

          

Total Expenditure

1,04,257.72

1,02,671.29

85,587.42

75,366.59

81,492.78

EBIT

2,276

1,295

2,498

2,614

4,262

 

          

Finance cost

335

244

159

259

225

EBT before exceptional Items

1,941

1,051

2,339

2,354

4,037

 

          

Share in P&L of Joint Ventures

562

578

18

300

32

PBT

2,503

1,629

2,356

2,655

4,070

 

          

Tax Expenses

484.77

276

437.56

650.64

1,009.05

PAT

2,018

1,353

1,919

2,004

3,061

 

Business

  • HPCL is a petroleum oil refining and marketing conglomerate. It has significant oil marketing operations and is India's third-largest oil refining and marketing company.

  • The company has a total refining capacity of 21.5 MMTPA, comprised of Coastal refineries in Mumbai and Vishakhapatnam.

  • HPCL is setting up a grass-root Greenfield refinery-cum-petrochemical complex with a 9 MTPA in Barmer through HPCL Rajasthan Refinery Ltd, a JV with the Government of Rajasthan.

  • Through a joint venture with Singapore-based Mittal Energy Investments Pvt Ltd, the company also operates an 11.3 MMTPA refinery in Bathinda, Punjab.

  • HPCL Refinery Capacity

    Total Capacity

    21.5 MMTPA

    Mumbai

    7.5 MMTPA

    Vishakhapatnam

    8.3 MMTPA

    Bhatinda

    5.65 MMTPA

  • Out of the total revenue generated, 99.91% has been generated from Downstream Petroleum activities, whereas 0.09% has been generated from other activities in FY 2022, which is at par when compared to FY 2021.

    HPCL Segment Wise Revenue Breakdown

  • As of 2022, the company has 20,183 retail outlets, 6,249 LPG Distribution, 6 Lube blending plants, and 275 Lube distributers.

  • As of March 2022, the company has achieved market sales of 39.14 MMT and a refining throughput of 13.97 MMT (Metric Tonne).

 

Hindustan Petroleum Corporation Limited - Revenue Trend

Topline and Bottomline trend (crores)

Hindustan Petroleum Corporation Limited Topline and Bottomline trend

 

Hindustan Petroleum Corporation Limited EBIT Margin

 

Hindustan Petroleum Corporation Limited Shareholding Pattern

 

HPCL Major Shareholders

 

Ratio Analysis

 

Mar-18

Mar-19

Mar-20

Mar-21

Mar-22

Profitability Ratio

 

 

 

 

 

Gross Profit

79.60%

77.00%

79.76%

84.50%

82.07%

EBITDA Margin

5.01%

4.37%

2.55%

6.89%

3.39%

EBIT Margin

3.85%

3.33%

1.38%

5.55%

2.32%

Pre-Tax Margin

4.14%

3.38%

0.48%

5.25%

2.44%

Net Profit Margin

2.96%

2.25%

0.92%

3.94%

1.95%

 

 

 

 

 

 

Return on Investment

 

 

 

 

 

Return on Asset – ROA

 

6.79%

2.35%

8.49%

5.05%

Return on Capital Employed – ROCE

 

21%

7%

23%

11%

Return on Equity – ROE

 

23.92%

8.60%

30.88%

18.35%

 

 

 

 

 

 

Liquidity Ratio

 

 

 

 

 

Current ratio (x)

0.77

0.76

0.66

0.71

0.70

Quick Ratio

0.377

0.403

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