Hindustan Petroleum Corporation Ltd.
Hindustan Petroleum Corporation Ltd.
ABOUT
Hindustan Petroleum Corporation Ltd is mainly engaged in the business of refining crude oil and marketing petroleum products, production of hydrocarbon as well as providing services for the management of E&P Blocks.
KEY POINTS
Refineries Capacity
Total Capacity- ~21.5 MMTPA
Refinery Locations :
Mumbai - 7.5 MMTPA
Visakhapatnam - 8.3 MMTPA
Bathinda - 5.65 MMTPA*
*Co. owns a 50% stake in a refinery located in Bathinda, Punjab with a capacity of 11.3 MMTPA.
(*MMTPA-Million Metric Tonne Per Annum.)
Capacity Utilization
The company has reported above 100% utilization levels for the past few years. The capacity utilization rate was ~109% in FY20.
Revenue Breakup
Presently, high-speed diesel (HSD) accounts for ~51% of revenues, followed by Motor spirit (~26%) and Liquified petroleum gas (LPG) (~13%).
Increase in Sales Volume
The sales volume of downstream crude products has increased from ~34 Million tonnes in FY16 to ~39.6 million tonnes in FY20.
Marketing Network
The company's marketing network includes ~16,476 retail outlets, ~1,638 SKO/ LDO dealers, and ~6,192 LPG distributors.
Market Share
The company is one of the 3 leading public OMCs with a 24% market share in the domestic petroleum marketing business in India.
Aggressive CAPEX
The company is undertaking aggressive CAPEX plans worth ~39,000 crores INR from FY21 to FY23 which includes equity investments of ~7,200 crores in JVs.
Its key CAPEX projects are:-
1. Expansion and modernization of its refineries in Mumbai and Visakhapatnam. It plans to expand the capacity of the Mumbai refinery to 9.5 MMTPA and the Visakhapatnam refinery to 15 MMTPA.
2. Refinery-cum-petrochemical complex in Rajasthan (74% stake)
3. LNG terminal in Gujarat (50% stake)
Acquired by ONGC
In January 2018, Oil and Natural Gas Corporation Ltd acquired a ~51% stake in HPCL from GOI for ~37,000 crores.
TECHNICAL ANALYSIS.
Time Frame - 1D.
1. High trading and delivered volume.
2. Aggressive OI in FUT.(long side)
3. Fall in Brent Crude Oil price.
4. Option chain is quite interesting, 240 level will be crucial.
FUNDAMENTAL ANALYSIS.
Sector: Refineries.
1. Market Cap - ₹ 33,817 Cr.
2. Stock P/E -
3. Price to book value - 1.20
4. Debt to equity - 2.65
5. Free Cash Flow - ₹ 3,782 Cr.
DISCLAIMER - All analyses are for educational purposes. it is not trading or investment advice.
#education #markets #equities #stockmarket #technicalanalysis #stocks #investment #trading #india #finance #fundamentalanalysis #nse #bse #supertrend #education #investing #investments #financialmarkets #learningeveryday #learning #hpcl #Refineries
ABOUT
Hindustan Petroleum Corporation Ltd is mainly engaged in the business of refining crude oil and marketing petroleum products, production of hydrocarbon as well as providing services for the management of E&P Blocks.
KEY POINTS
Refineries Capacity
Total Capacity- ~21.5 MMTPA
Refinery Locations :
Mumbai - 7.5 MMTPA
Visakhapatnam - 8.3 MMTPA
Bathinda - 5.65 MMTPA*
*Co. owns a 50% stake in a refinery located in Bathinda, Punjab with a capacity of 11.3 MMTPA.
(*MMTPA-Million Metric Tonne Per Annum.)
Capacity Utilization
The company has reported above 100% utilization levels for the past few years. The capacity utilization rate was ~109% in FY20.
Revenue Breakup
Presently, high-speed diesel (HSD) accounts for ~51% of revenues, followed by Motor spirit (~26%) and Liquified petroleum gas (LPG) (~13%).
Increase in Sales Volume
The sales volume of downstream crude products has increased from ~34 Million tonnes in FY16 to ~39.6 million tonnes in FY20.
Marketing Network
The company's marketing network includes ~16,476 retail outlets, ~1,638 SKO/ LDO dealers, and ~6,192 LPG distributors.
Market Share
The company is one of the 3 leading public OMCs with a 24% market share in the domestic petroleum marketing business in India.
Aggressive CAPEX
The company is undertaking aggressive CAPEX plans worth ~39,000 crores INR from FY21 to FY23 which includes equity investments of ~7,200 crores in JVs.
Its key CAPEX projects are:-
1. Expansion and modernization of its refineries in Mumbai and Visakhapatnam. It plans to expand the capacity of the Mumbai refinery to 9.5 MMTPA and the Visakhapatnam refinery to 15 MMTPA.
2. Refinery-cum-petrochemical complex in Rajasthan (74% stake)
3. LNG terminal in Gujarat (50% stake)
Acquired by ONGC
In January 2018, Oil and Natural Gas Corporation Ltd acquired a ~51% stake in HPCL from GOI for ~37,000 crores.
TECHNICAL ANALYSIS.
Time Frame - 1D.
1. High trading and delivered volume.
2. Aggressive OI in FUT.(long side)
3. Fall in Brent Crude Oil price.
4. Option chain is quite interesting, 240 level will be crucial.
FUNDAMENTAL ANALYSIS.
Sector: Refineries.
1. Market Cap - ₹ 33,817 Cr.
2. Stock P/E -
3. Price to book value - 1.20
4. Debt to equity - 2.65
5. Free Cash Flow - ₹ 3,782 Cr.
DISCLAIMER - All analyses are for educational purposes. it is not trading or investment advice.
#education #markets #equities #stockmarket #technicalanalysis #stocks #investment #trading #india #finance #fundamentalanalysis #nse #bse #supertrend #education #investing #investments #financialmarkets #learningeveryday #learning #hpcl #Refineries
Disclaimer
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