Hindustan Petroleum Corporation Ltd.

Energy · NSE

₹387.00

1Y+1.1%

P/E5.4

Fwd P/E6.5

ROE—

Margin+3.5%

D/E110.91

Div Yld+4.0%

Quality Score42/100

Analyst consensus:Neutral· 31 analysts

52-week range

₹316 – ₹508

From 52w high

-23.9%

RSI (14)

56.1

vs SMA 50 / 200

↑ 50 · ↓ 200

Hindustan Petroleum Corporation (HINDPETRO) is a state-owned oil marketing and refining company trading at ₹387, a trailing PE of 5.35x and a 52-week drawdown of 23.89%. The stock is above its 50-DMA (₹374.58) but 8.0% below its 200-DMA (₹421.76), with a debt-to-equity ratio of 110.9 and a profit margin of 3.55% reflecting the capital-intensive, thin-margin nature of the downstream energy business.

Pros

✓Low trailing PE of 5.35x and dividend yield of 4.01% place HINDPETRO among the lowest-valued peers in the Energy sector (ranked 2nd lowest PE out of 6); BPCL at 5.27x is the only peer cheaper on this metric.
✓Five-year revenue CAGR of 4.1% alongside a five-year earnings CAGR of 57.7% reflects a period of significant margin recovery from a low base, primarily driven by refining spread normalisation post-pandemic.
✓FCF was positive in 3 of the available assessment years, indicating the core refining-and-marketing business generated cash in more years than not over the measurement window.
✓Dividend yield of 4.01% is meaningful in absolute terms and reflects continued government-backed payout policy for a PSU; the 52-week high is ₹508 (implied from 23.89% drawdown), showing the stock has traded materially higher within the past year.

Cons

✗Debt-to-equity of 110.9 is extremely high for a non-financial company; combined with a rising debt trend, a deterioration in refining margins or crude price spike could stress debt-servicing capacity.
✗ROE has exceeded 15% in only 2 of the measured years, and the consistency score of 22 out of 100 indicates earnings quality is structurally low — the 57.7% five-year earnings CAGR is driven by cyclical normalisation rather than compounding profitability.
✗Profit margin of 3.55% leaves minimal buffer: a crude price increase, subsidy under-recovery mandate, or refining spread compression could sharply reduce or eliminate net income, as the thin-margin structure of oil marketing companies historically demonstrates.
✗Quality score of 45 ranks 4th out of 6 Energy sector peers, and the forward PE of 6.52 is higher than the trailing PE of 5.35, implying the analyst consensus embeds lower near-term earnings relative to the most recent reported figure.

Recent context

·Multiple senior management changes were announced effective May 1–5, 2026, including the designation of a new Chief Risk Officer and the cessation of an independent director — governance continuity and the board composition change are worth tracking.
·A Brent crude spike in late April 2026 pressured oil marketing company shares, including HINDPETRO; subsequent news suggested markets viewed the oil price rise as short-lived, and OMC stocks partially recovered — crude price trajectory remains the primary near-term earnings variable.
·The 3-month price decline of 15.66% against a flat 1-year return of +1.13% suggests the stock outperformed earlier in the 12-month window and has given back gains recently; nearest resistance sits at ₹388 (essentially current price), with support at ₹317–₹316 approximately 18% below.

Questions to ask yourself

?Does HINDPETRO's debt-to-equity of 110.9 reflect industry-standard project financing for refinery capacity expansion, or is it indicative of structural leverage that persists through commodity cycles?
?How sensitive is the 3.55% net profit margin to a 10% change in crude oil prices or a change in the government's subsidy under-recovery policy, and how has this sensitivity played out historically?
?Given that the five-year earnings CAGR of 57.7% was driven by recovery from a low base, what is the earnings trajectory implied by the forward PE of 6.52x relative to the trailing PE of 5.35x?
?What is the significance of the simultaneous senior management changes — Chief Risk Officer designation and independent director departure — in the context of HINDPETRO's near-term strategic and governance posture?

5.4

Forward PE

6.5

ROE

—

Profit margin

+3.5%

D/E

110.91

Dividend yield

+4.0%

Quality score

45/100

ROE 5y above 15%

2/5 yrs

FCF 5y positive

3/5 yrs

Analyst consensus2.58 · 31 analysts(1–5 scale, lower = more constructive)

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For informational purposes only. Not investment advice. VivaTrades is not a SEBI-registered Investment Adviser or Research Analyst. Market data sourced from public feeds; consult a registered adviser before any investment decision.Analysis generated 11 May 2026.