energy

Hindustan Petroleum

HINDPETRO · Nifty 50

402.65

Price 2026-06-17

BROAD EXPANSION73% confidence

At a Glance

Sector Positionenergy sector. Flow: outflow. is not among current leaders. Regime: BROAD EXPANSION (73%).
Fundamental Score100/100 (STRONG). 1 positive flags, 3 concerns.
Historical Context33 similar technical setups. Average outcome: -10.3% decline. 0% positive.

Fundamental

100/100

STRONG

Trust

95/100

Verification

Coverage

44/100

LIMITED

Quick Take

Hindustan Petroleum scores 100/100 on fundamentals (strong). Hindustan Petroleum: BROAD EXPANSION regime.

Fundamental Score: 100/100 · STRONG · 2 signals detected

DuPont Analysis

ROE 26.9% broken into three drivers. Each shows how efficiently the company generates returns.

ROE26.9%=
3.9%Net Margin
×
2.2xTurnover
×
3.1xLeverage

ROE of 26.88% is strong efficiency-driven and stable. Net margin of 3.9% × asset turnover of 2.21x × leverage of 3.1x.

What This Means

Net margin of 3.9% means the company keeps ₹3.9 as profit for every ₹100 of revenue. This is a low-margin business. Asset turnover of 2.21x means the company efficiently uses its assets to generate revenue. Leverage of 3.1x means the company uses significant debt. Higher leverage amplifies returns but also risk.

Margin Structure

Gross

10.1%

Operating

5.8%

Net

3.9%

improving

Gross margin 10.1% → operating margin 5.8% → net margin 3.9%. Margins are IMPROVING.

Financial Health

Earnings Quality

STRONG

Cash flow covers net income 2.0x — earnings are HIGH QUALITY. The company converts profit to cash efficiently.

Debt Sustainability

COMFORTABLE

Interest covered 7.9x — very comfortable. Debt service is not a concern. Debt/EBITDA at 2.1x is moderate.

Free Cash Flow

STRONG

FCF margin at 6.2% — moderate. Generating cash after investments.

Peer Comparison

Hindustan Petroleum is compared against 10 peers in the energy sector.

Key Watchpoints

🟢

Breaks above ₹423 (+5%)

Trend reversal confirmation

🔴

Breaks below ₹383 (-5%)

Further downside risk

🟢

Energy sector entering leadership

Sector rotation signal

Detected Patterns

✅ Cash Flow Inflection: FCF turned positive after negative periods — major transition
✅ High Earnings Quality: Cash flow covers earnings 2.1x — strong cash conversion

Risk Flags

🔴 2 Critical⚠️ 1 Warning1 Positive4 total flags
🔴Cash covers only 0% of current liabilities
Balance Sheet

Liquidity squeeze. Company may struggle to meet short-term obligations without refinancing.

🔴Overall governance risk: 10/10
Governance

Elevated risk score. Review audit, board, and shareholder rights metrics.

⚠️Board risk elevated: 10/10
Governance

Governance structure concerns. Independent director representation may be weak.

Price/Sales: 0.2x — reasonable revenue multiple
Valuation

Company not overvalued on revenue basis.

🔴 2 CRITICAL flags — significant concerns. Investigate before investing.

Data Quality

95/100All ratios self-computed from verified sources. 🟢 5 years of financial data — sufficient for trend analysis

News Correlation

margin pressure (4)management outlook (4)
⚠️ Our margin analysis (improving) contradicts news reports of margin pressure — investigate

50 articles scanned for fundamental themes

Facts

P/E Ratio
4.6UNAVAILABLE
P/B Ratio
1.3HIGH
Market Cap
₹8275101.6L CrHIGH
From 52W High
79% of high
Sector Peers
10
Hindustan Petroleum Stock Analysis, Valuation, Fundamentals & Intelligence | FynSight