HPCL: Impresses, on prima facie… - Views on News from Equitymaster

Helping You Build Wealth With Honest Research
Since 1996. Try Now

  • MyStocks


Login Failure
(Please do not use this option on a public machine)
  Sign Up | Forgot Password?  

HPCL: Impresses, on prima facie…

Jan 29, 2001

Hindustan Petroleum Corporation Ltd. (HPCL) has reported a strong topline growth of 42.3%. The increase in sales is due to higher realisations with petroleum prices hiked towards the end of the previous quarter. It could also be due to higher merchant sales (purchased for resale).

(Rs m) 3QFY00 3QFY01 Change
Sales 92,728 131,927 42.3%
Other Income 208 723 248.3%
Interest 328 1,088 231.8%
Profit after Tax/(Loss) 2,210 3,388 53.3%
Net profit margin (%) 2.4% 2.6%  
No. of Shares (eoy) 226 339  
Diluted Earnings per share* 26.1 40.0  
P/E Ratio   4.4  

Prima facie the company seems to have performed better than its competitor Bharat Petroleum (BPCL). This, however, could be due to the significant rise in other income.

The interest expense of the company has increased substantially. This is resultant to the difficult industry scenario prevailing. The rise in feedstock prices (crude oil) has increased working capital requirements. Further, with dues blocked in the oil pool account, the company has had to resort to short term borrowings to overcome the gap in working capital. This has adversely impacted the bottomline.

HPCL at Rs 176 is trading at a multiple of 4.4x on 3QFY01 annualised earnings.

Equitymaster requests your view! Post a comment on " HPCL: Impresses, on prima facie… ". Click here!


More Views on News

HPCL Announces Quarterly Results (3QFY20); Net Profit Up 201.8% (Quarterly Result Update)

Feb 7, 2020 | Updated on Feb 7, 2020

For the quarter ended December 2019, HPCL has posted a net profit of Rs 7 bn (up 201.8% YoY). Sales on the other hand came in at Rs 746 bn (down 3.4% YoY). Read on for a complete analysis of HPCL's quarterly results.

HPCL Announces Quarterly Results (2QFY20); Net Profit Down 3.6% (Quarterly Result Update)

Nov 12, 2019 | Updated on Nov 12, 2019

For the quarter ended September 2019, HPCL has posted a net profit of Rs 11 bn (down 3.6% YoY). Sales on the other hand came in at Rs 665 bn (down 9.4% YoY). Read on for a complete analysis of HPCL's quarterly results.

HPCL 2018-19 Annual Report Analysis (Annual Result Update)

Jul 30, 2019 | Updated on Jul 30, 2019

Here's an analysis of the annual report of HPCL for 2018-19. It includes a full income statement, balance sheet and cash flow analysis of HPCL. Also includes updates on the valuation of HPCL.

More Views on News

Most Popular

How the 8-Year Cycle Can Help Identify Multibaggers (Fast Profits Daily)

Sep 11, 2020

This is how you can apply the greed and fear cycle in the market to pick stocks.

Why We Picked This Small-cap Stock for Our Hidden Treasure Subscribers (Profit Hunter)

Sep 17, 2020

This leading household brand will profit big time in a post covid world.

This Could Be the Best September for Auto Stocks (Profit Hunter)

Sep 11, 2020

Here's why I think this month could be a great for auto stocks.

What Do the Charts Say About Buying Smallcaps Now? (Fast Profits Daily)

Sep 18, 2020

Everyone seems to be excited about buying smallcaps now...but is it the right thing to do? What do the charts tell us? Find out in this video...


Covid-19 Proof
Multibagger Stocks

Covid19 Proof Multibaggers
Get this special report, authored by Equitymaster's top analysts now!
We will never sell or rent your email id.
Please read our Terms


Sep 23, 2020 09:17 AM