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has add call on Hindustan Petroleum Corporation with a target price of Rs 260. The current market price of is Rs 239.5.

Time period given by analyst is one year when

. price can reach defined target.

Hindustan Petroleum Corporation Ltd., incorporated in the year 1952, is a Large Cap company (having a market cap of Rs 34250.85 Crore) operating in Gas & Petroleum sector.
Hindustan Petroleum Corporation Ltd. key Products/Revenue Segments include Refinery, Rent and Other Operating Revenue for the year ending 31-Mar-2021.

Financials

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For the quarter ended 31-03-2022, the company reported a Consolidated Total Income of Rs 98818.10 Crore, up 1.72 % from last quarter Total Income of Rs 97146.50 Crore and up 31.07 % from last year same quarter Total Income of Rs 75394.63 Crore. Company reported net profit after tax of Rs 1456.57 Crore in latest quarter.

Investment Rationale
is on track to materially raise its refinery capacity by 9mtpa for its standalone Mumbai/Vizag refineries and another 4-5mt capacity to come via the share in Rajasthan refinery (HMEL). It also assumes MRPL’s 12mt capacity to merge with HPCL by FY24E, raising refining scale materially. However, with abysmal marketing margins, DER at ~2x by FY24E (from 1x in FY21) and return ratios also dipping over FY21-FY24E, it sees limited upside even from the current low valuations. The EV/EBITDA-based valuation delivers a target price of Rs260.

Promoter/FII Holdings
Promoters held 54.9 per cent stake in the company as of 31-Mar-2022, while FIIs owned 19.9 per cent, DIIs 15.09 per cent.

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