The IIFL Securities Report: Buy Hindustan Petroleum Corp - July 31
IIFL Securities recommends buying Hindustan Petroleum Corporation (HPCL) shares at the current market price of Rs 403.2. The brokerage firm has set a target price of Rs 415 for HPCL, implying a potential upside of around 3%. HPCL is a government-owned oil and gas company engaged in the refining, marketing, and distribution of petroleum products. The company has a strong presence in the Indian market and has been benefiting from the rising demand for fuel in the country.
About Hindustan Petroleum Corp:
Hindustan Petroleum Corporation Limited (HPCL) is an Indian state-owned oil and natural gas company with its headquarters in Mumbai, Maharashtra. It is a subsidiary of Oil and Natural Gas Corporation (ONGC). HPCL is engaged in the exploration, production, refining, marketing, and distribution of petroleum products. The company has a refining capacity of around 24.8 million tonnes per annum and operates a network of over 15,000 retail outlets across India. HPCL also has a significant presence in the aviation sector, providing fuel to over 100 airports in India.
52 Week Price Trend:
Hindustan Petroleum Corp (HPCL) is currently trading at Rs 403.2, significantly below its 52-week high of Rs 594.8. The year has been challenging for HPCL, as it faced headwinds from rising crude oil prices and inventory losses. However, the recent correction in oil prices and government support measures have provided some respite. HPCL's strong fundamentals and market leadership position make it a compelling investment opportunity at its current valuation. Should crude oil prices remain stable or decline further, HPCL's profitability could improve, leading to potential upside in its stock price.
Stratzy's MOST Analysis:
HINDPETRO has been given a rating of BB- by Stratzy's MOST framework. This rating signifies a Medium Fundamental Risk, based on the evaluation of four pillars: Management, Outlook, Safety, and Trend. The MOST framework provides a comprehensive assessment of a stock's risk profile, taking into account factors such as the company's management efficiency, future prospects, financial stability, and market trends. HINDPETRO's BB- rating indicates potential areas of concern that investors should consider before making investment decisions.
Company's Fundamentals:
Hindustan Petroleum Corp (NSE: HINDPETRO), a leading energy company in India, has financial ratios indicating strong value for investors. The stock PE ratio of 4.54 suggests that the stock is undervalued compared to its earnings, making it potentially attractive for investors seeking growth. The PB ratio of 1.71 implies that the stock is trading below its book value, further enhancing its value proposition. Additionally, the dividend yield of 2.77% provides investors with a steady stream of income, making it a suitable option for those seeking a balance of growth and income potential.
Fundamental and Technical information provided in this blog were last updated on 31 Jul, 2024
Disclaimer: The information and recommendations presented in this section, including any attached reports, are sourced from third-party providers through diverse channels. The views and opinions expressed within these materials belong solely to their respective creators. These views and opinions do not necessarily reflect the position of Stratzy Fintech Pvt Ltd. Stratzy explicitly disclaims any guarantees, express or implied, regarding the accuracy and reliability of the provided content. We strongly advise consulting with a licensed financial advisor before making any investment decisions based on this information. Remember, seeking independent financial advice is crucial.