Hindustan Petroleum Corporation Limited (HPCL) is a publicly-owned natural gas and oil marketing company headquartered in Mumbai, the capital city of Maharashtra. The company holds more than 25% market share amid other state-run oil marketing companies.
The market capitalisation of HPCL, a premier brand for oil marketing in India, was Rs.58,408.12 crore as of early March 2018.
Wealth of HPCL and recent performance
- The sales turnover of HPCL was up 16.09% to Rs.6,30,762 crore during the third quarter ended on 31 December 2017. The oil marketing company reported a 15.85% hike in the total income.
- Similarly, operating profits were up 6.07% to Rs.36,328.30 crore. Gross profit increased by 8.39% during the same tenure.
- Profit before Depreciation and Tax (PBDT) rose to Rs.34,531 crore from Rs.31,122.70 crore during the Q3 FY 2017-2018. The net profits of HPCL were up 12.39% to Rs.19,496 crore.
- The Earnings per Share, which influences stock investors to buy shares, increased to Rs.12.79. In the previous quarter, it was Rs.11.38. This has been a good sign.
Stock trends HPCL 2016
- In January 2016, the highest share price of HPCL was recorded at Rs.202.22 and the lowest price at Rs.172.78. During the month, the share price of the oil and natural gas company slid by 2.42%. The stock prices of BPCL were lower compared to the following month.
- They began recouping again in March 2016 and stood at Rs.175.06. Between January 2016 and March 2016, the highest and lowest stock prices were Rs.181.85 and Rs.141.14 respectively.
- The equity value of BPCL increased by 5.84%, 8.72% and 9.91% in April 2016, May 2016 and June 2016 respectively. The lowest price was Rs.172.34 and the highest price was Rs.223.32 during this quarter. The overall stock performance of HPCL was good.
- The stock price of Hindustan Petroleum Corporation Limited continued to climb in July 2016. The stocks were priced at Rs.280.38 and had registered a growth rate of 26.65% in the month. They slid to Rs.270.82 in the following month.
- They were up by 4.36%, 10.21% and 0.84% in September 2016, October 2016 and November 2016. Towards the end of 2016, the share value the company was Rs.294.20. The eight months in 2016 had produced an upward trend and the remaining four months a downward trend.
Stock trends HPCL 2017
- The share value of Hindustan Petroleum Corporation Limited stood at Rs.347.57 in January 2017. The month was closed with the highest price of Rs.367 and the lowest price of Rs.294.50. It jumped to Rs.358.50 in the subsequent month. In March 2016, the company’s share value was down 2.25% to Rs.350.43.
- Stocks were traded at Rs.357.43, Rs.369.47 and Rs.340.23 in April 2017, May 2017 and June 2017. They had registered a 2% hike in April, a 3.37% rise in May and a 7.91% drop in June of the same year.
- After June, they had witnessed a growing trend. They were up 12.63% to Rs.383.20 and were up 27.44% to Rs.488.35 in July 2017 and August 2017. The share prices of HPCL were down 12.60% to Rs.426.80 in the month of September. The performance of the equities of the oil and natural company was satisfactory.
- Between October 2017 and December 2017, the stocks of HPCL were sold at the highest rate of Rs.484.35 and at the lowest rate of Rs.400. In October 2017 and December 2017, the stock price of HPCL accelerated by 4.77% and 0.46%. Even this quarter had produced excellent returns for stock traders.
Should I buy HPCL stocks?
- Stock investors can be clubbed into two categories: 1) short-run investors and 2) long-run investors. The stock investment strategies will be different for these two classes. You have to rely on the technical analysis if you are a short-term trader of HPCL stocks. If you are a long-run trader of HPCL shares, the fundamental analysis has to be done.
- The fundamentals of HPCL have been strong. Therefore, investors may consider making an investment in HPCL equities. Let’s read a few fundamentals. The total share capital mounted to Rs.1,016.27 crore in the financial year ended on 31 December 2017. One year ago, it was just Rs.339.01 crore. The networth is one the biggest indicators for investors. As of 31 December 2017, the networth of BPCL was Rs.20,347.41 crore.
- The overall revenue of the company accelerated to Rs.192,992.49 crore in the FY 2017 from Rs.178,951.85 crore as on the previous year. The solvency ratios are at par with the accounting standards. Considering these aspects, we may hope that the stocks of HPCL will yield a better return over the long-term.
- Using the technical analysis, one can comprehend the stock price of HPCL. It is the best way to make uniformed investment decisions. As per a 5-day moving average, you may consider selling the stock at Rs.383.15. According to a 10-day moving average, the stocks may be bought at Rs.378.93.
- If you look at the stock prices of HPCL in 2016 and 2017, it can be observed that the growth rate was considerable and consistent. They moved in a growing trend except a few months. Considering this element, holding the equities of the oil marketing company may earn better results over the long-run.
Hindustan Petroleum Corporation Limited is a renowned public-sector oil marketing company in India. It is a Global Fortune 500 and Forbes 2000 company. The Government of India holds more than 51% of the company’s share. The remaining has been distributed to other investors, including retail and corporate investors. HPCL has been registered on the National Stock Exchange and Bombay Stock Exchange.The company holds more than 25% market share of in the Indian fuel retail sector. It gained the brand identity for exceptional quality services and products.
HPCL runs two major oil refinery centers fabricating an extensive range of petroleum products. It also owns the biggest Lube Refinery in the nation. The lube refinery owned and run by HPCL can produce Lube Bases oil at par with global standards. Currently, 300 plus grades of Lube are produced by HPCL, which is also running a refinery center in association with Mittal Energy Investments Private Limited. The company operates domestically with more than 11,000 committed employees.
History of HPCL
- In 1952, Hindustan Petroleum Corporation Limited was started in the name of Standard Vacuum Refining Company of India Limited.
- In 1962, it was renamed ESSO Standard Refining Company of India Limited.
- In 1974, Hindustan Petroleum Corporation Limited was conceptualised.
- In 1979, Kosan Gas Company was merged with HPCL.
Management of HPCL
Chairman and Managing Director
M K Surana was appointed as Chairman and Managing Director at Hindustan Petroleum Corporation Limited in April 2016. Before this, he worked as Chief Executive Officer (CEO) at Prize Petroleum Company Limited, which is a fully-owned subsidiary of HPCL since 2012. M K Surana is an engineer and also holds a Master’s degree in Financial Management. He has more than 30 years of experience in the petroleum industry and joined HPCL in 1982. His contributions to the overall development of this oil company have been significant. He has handled various leadership positions successfully and is recognised for brilliant business ideas and innovative thinking.
Director Human Resource (HR)
Pushp Kumar Joshi was appointed as Director – Human Resource (HR) in August 2012. He is basically a Law graduate from XLRI and joined HPCL in 1986. He has successfully handled key positions in the HR wing at HPCL. His major responsibilities are to formulate and bring key Human Resource practices and policies. He is keen in developing employee-centric programs at HPCL to build a healthy work culture and augment the company’s performance. At HPCL, Pushp Kumar led various HR practices, including technical training programs, behavioral training programs, productivity enhancement programs etc.
Hindustan Petroleum Corporation Limited,
3rd floor, Petroleum House,
17, Jamshedji Tata Road,
Mumbai – 400020
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