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Hindustan Petroleum Corporation Ltd logo

Hindustan Petroleum Corporation Ltd

NSE: HINDPETRO BSE: 500104

431.45

(1.04)%

Sun, 01 Feb 2026, 10:34 am

Analysis

dividend

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Pros

  • Dividends per share have increased over the past 10 years.
  • Dividends paid are well covered by earnings (2.5x coverage).
  • Dividends after 3 years are expected to be well covered by earnings (2.9x coverage).
  • Hindustan Petroleum's pays a higher dividend yield than the bottom 25% of dividend payers in India (0.76%).
  • Hindustan Petroleum's dividend is above the markets top 25% of dividend payers in India (3.08%).
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Cons

  • Dividends per share have been volatile in the past 10 years (annual drop of over 20%).

future

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Pros

  • Hindustan Petroleum's earnings are expected to grow significantly at over 20% yearly.
  • Hindustan Petroleum's earnings growth is expected to exceed the India market average.
  • Hindustan Petroleum's earnings growth is expected to exceed the low risk savings rate of 7.2%.
  • Performance (ROE) is expected to be above the current IN Oil and Gas industry average.
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Cons

  • Cash flow for Hindustan Petroleum is expected to increase but not above the 50% threshold in 2 years time.
  • Hindustan Petroleum's earnings are expected to decrease over the next year.
  • Hindustan Petroleum's net income is expected to decrease over the next 2 years.
  • Hindustan Petroleum is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
  • A decline in Hindustan Petroleum's performance (ROE) is expected over the next 3 years.
  • Hindustan Petroleum's revenue is expected to decrease over the next 2 years.
  • Hindustan Petroleum's revenue is expected to decrease over the next 1-3 years, this is not considered high growth.
  • Hindustan Petroleum's revenues are expected to decrease over the next 1-3 years, this is below the India market average.

health

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Pros

  • Hindustan Petroleum is profitable, therefore cash runway is not a concern.
  • Hindustan Petroleum is profitable, therefore cash runway is not a concern.
  • Debt is well covered by operating cash flow (29.5%, greater than 20% of total debt).
  • Debt is covered by short term assets, assets are 1.4x debt.
  • Hindustan Petroleum's cash and other short term assets cover its long term commitments.
  • The level of debt compared to net worth has been reduced over the past 5 years (282.4% vs 93.9% today).
  • Interest payments on debt are well covered by earnings (EBIT is 141.7x coverage).
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Cons

  • Hindustan Petroleum's short term (1 year) commitments are greater than its holdings of cash and other short term assets.
  • Hindustan Petroleum's level of debt (93.9%) compared to net worth is high (greater than 40%).
  • High level of physical assets or inventory.

management

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Pros

  • Mukesh's remuneration is lower than average for companies of similar size in India.
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Cons

  • The average tenure for the Hindustan Petroleum board of directors is less than 3 years, this suggests a new board.
  • Mukesh's compensation has increased by more than 20% in the past year whilst earnings fell less than 20%.
  • The average tenure for the Hindustan Petroleum management team is less than 2 years, this suggests a new team.

past

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Pros

  • Hindustan Petroleum's year on year earnings growth rate has been positive over the past 5 years.
  • Hindustan Petroleum used its assets more efficiently than the IN Oil and Gas industry average last year based on Return on Assets.
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Cons

  • Hindustan Petroleum's 1-year earnings growth is negative, it can't be compared to the 5-year average.
  • Hindustan Petroleum's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
  • Hindustan Petroleum has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • Hindustan Petroleum's 1-year earnings growth is negative, it can't be compared to the IN Oil and Gas industry average.

value

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Pros

  • Hindustan Petroleum is good value based on expected growth next year.
  • Hindustan Petroleum is good value based on earnings compared to the IN Oil and Gas industry average.
  • Hindustan Petroleum is good value based on earnings compared to the India market.
  • BSE:500104 is up 11.1% along with the Oil and Gas industry (10.5%) over the past month.
  • BSE:500104 is up 11.1% outperforming the market in India which returned 8% over the past month.
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Cons

  • Hindustan Petroleum's share price is above the future cash flow value, it's not available at a moderate discount (< 20%).
  • Hindustan Petroleum's share price is above the future cash flow value, it's not available at a substantial discount (< 40%).
  • Hindustan Petroleum is overvalued based on assets compared to the IN Oil and Gas industry average.
  • 500104 underperformed the Oil and Gas industry which returned -4% over the past year.
  • 500104 underperformed the Market in India which returned -14.5% over the past year.

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