Hindustan Petroleum Corporation Ltd.
ISIN: INE094A01015 • Market Cap: ₹77,676 Cr
The 5-Pillar Quality Audit for Hindustan Petroleum Corporation Ltd.
Evaluated across Profitability, Financial Health, Historical Compounding, Valuation Safety, and Ownership Governance:
1. Profitability & Capital Efficiency
Weight: 25%Measures operating margins (1.4%), Return on Capital Employed (22.2%), and equity compounding (27.5%).
2. Financial Health & Solvency
Weight: 25%Debt-to-Equity is 0.78 with comfortable interest coverage and clean working capital.
3. Growth & Compounding Track Record
Weight: 20%Historical 3Y Sales CAGR (5.1%) and 3Y PAT CAGR (-86.7%).
4. Valuation Multiple & Margin of Safety
Weight: 15%Trades at P/E of 46.48 vs PEG of 5.00 and Dividend Yield of 6.6%.
5. Ownership Quality & Governance
Weight: 15%Promoter holding stands at 54.9%, backed by 36.4% institutional ownership.
Key Fundamental Strengths
Superior Capital Efficiency (ROCE: 22.2%)
Hindustan Petroleum Corporation Ltd. generates exceptional return on capital employed of 22.2%, reflecting pricing power and competitive moat.
Robust Equity Compounding (ROE: 27.5%)
Shareholder equity compounds at a healthy 27.5%, exceeding average Indian equity benchmarks.
Deep Institutional Sponsorship (36.4%)
Mutual funds, domestic DIIs, and foreign FIIs hold 36.4%, providing strong governance scrutiny.
Areas to Watch & Potential Risks
Sectoral & Macro Headwinds (Oil Gas & Consumable Fuels)
Subject to broader cyclical demand, raw material price shifts, and regulatory frameworks governing the Oil Gas & Consumable Fuels space.
Quantitative Strategy Eligibility
Checking HINDPETRO against established Indian wealth creation frameworks:
Coffee Can Investing Framework
Fails 10%+ revenue growth or 15%+ minimum capital return benchmark over historical periods.
Quality Factor Screener (High RoIC + Low Debt)
Scorecard of 63/100 or leverage profile sits below strict quality index hurdles.
GARP / Value-Growth Blend
Valuation multiple or return metrics require further cyclical pullback.
Oil Gas & Consumable Fuels Sector Peer Comparison
Compare HINDPETRO directly against top industry peers by market capitalization:
| Company | 5-Pillar Score | Market Cap | P/E | ROCE | D/E | Scorecard |
|---|---|---|---|---|---|---|
| Hindustan Petroleum Corporation Ltd. (HINDPETRO)Current | 63/100 | ₹77,676 Cr | 46.48 | 22.2% | 0.78 | — |
| Reliance Industries Ltd. (RELIANCE) | 68/100 | ₹17.69 Lakh Cr | 23.68 | 9.2% | 0.41 | View |
| Oil & Natural Gas Corporation Ltd. (ONGC) | 67/100 | ₹2.99 Lakh Cr | 6.88 | 12.7% | 0.38 | View |
| Coal India Ltd. (COALINDIA) | 73/100 | ₹2.47 Lakh Cr | 7.90 | 19.6% | 0.12 | View |
| Indian Oil Corporation Ltd. (IOC) | 69/100 | ₹1.93 Lakh Cr | 5.73 | 18.9% | 0.55 | View |
| Bharat Petroleum Corporation Ltd. (BPCL) | 72/100 | ₹1.34 Lakh Cr | 7.83 | 25.6% | 0.45 | View |
Frequently Asked Questions: Hindustan Petroleum Corporation Ltd.
Q:What is the 5-Pillar Fundamental Score for Hindustan Petroleum Corporation Ltd. (HINDPETRO)?
Hindustan Petroleum Corporation Ltd. has a RupeeTools Fundamental Score of 63/100, placing it in the 'Moderate / Average' category. Its pillar scores are: Profitability (73/100), Financial Health (69/100), Growth (35/100), Valuation (53/100), and Ownership Quality (85/100).
Q:Is HINDPETRO fundamentally strong for long-term investment?
HINDPETRO currently holds a moderate quality rating of 63/100. While it operates in the Oil Gas & Consumable Fuels sector, investors should monitor its profit margins before initiating long-term positions.
Q:Does HINDPETRO pass the Coffee Can Investing filter?
No. HINDPETRO does not currently meet the strict 15% ROCE and 10% sustained topline compounding threshold mandated by the Coffee Can investing framework.
Q:How does HINDPETRO compare against other Oil Gas & Consumable Fuels peers?
Within India's Oil Gas & Consumable Fuels sector, HINDPETRO trades at a P/E of 46.48 and generates an ROCE of 22.2%. Compare its 5-Pillar score of 63/100 against top sector peers like Reliance Industries Ltd. (68/100), Oil & Natural Gas Corporation Ltd. (67/100).
Regulatory & SEBI Research Analyst Compliance Disclaimer:
This 5-pillar fundamental score is an automated quantitative health check generated purely from historical public financial statements, corporate filings, and exchange disclosures for educational and informational purposes only. It does NOT constitute investment advice, a stock recommendation, or a solicitation to buy or sell securities. RupeeTools is not a SEBI-registered Research Analyst. Please consult a SEBI-registered financial advisor before making investment decisions.