HPCL

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HPCL

  1. 1. TOPIC 1
  2. 2. CONTENTCOMPANY OVERVIEW FUNDAMENTAL ANALYSIS TECHNICAL ANALYSIS FUTURE OUTLOOK 2
  3. 3. COMPANY OVERVIEWOn 5th July 1952 The Company Was Incorporated With The Name OfStandard Vaccum RefiningOn 31st March 1962 The Company Name Was Changed To Esso StandardRefining Company Of India LimitedOn 15th July 1974 The Company Name Was Changed To Its Present I.E.Hndustan Petroleum Corporation LimitedHPCL, A Government Of India Undertaking Company, Is One Of The MajorIntegrated Oil Refining And Marketing Companies In India. It Is A Mega PublicSector Undertaking (Psu).The Major Refineries Of HPCL Are At Mumbai,vishakaptnam,manglore AndPunjab. 3
  4. 4. COMPANY OVERVIEW (Contd)HPCL Also Owns And Operates The Largest Lube Refinery In India Producing LubeBase Oils Of International StandardsHeadquarters Of HPCL Is In Mumbai, IndiaThe Total Number Of Employees Are 11,226 (FY 12)Category : Oil & GasSector : Power & FuelTarget Group For The Company Are The Enterprises Looking For Energy ForProduction, People For Petrol Diesel For Vehicles And Domestic UsesThe Chairman And The Managing Director Of HPCL Is Mr. S. Roy Choudhary 4
  5. 5. SHAREHOLDING PATTERN % SHAREHOLDING PATTERN 0.08 0.29 13.31 12.450.13 51.118.66 13.97 THE PRESIDENT OF INDIA FINANCIAL INSTITUTIONS FIIs/OCBs BANKS MUTUAL FUNDS NRIs EMPLOYEES-PHYSICAL PUBLIC 5
  6. 6. SHARE HOLDING PATTERN (CONTD…) (as of 31-3-2012) NAME NO. OF SHARES HOLD % HOLD THE PRESIDENT OF 173076750 51.11 INDIA FINANCIAL 44613071 13.97 INSTITUTIONS FII’s/OCB’s 23256521 8.66 BANKS 948131 0.13 MUTUAL FUNDS 41068435 12.45 NRI’s 928090 0.29EMPLOYEES - PHYSICAL 270845 0.08 PUBLIC 54465407 13.31 TOTAL 338627250 100 6
  7. 7. FINANCIAL ASSESSMENTREVENUE STATEMENT _____ IN RS CRORE _____ MARCH’12 MARCH’11 MARCH’10 MARCH’09 MARCH’08 SALES 188,327.54 142,396.49 114,888.82 131,802.84 112,098.27TURNOVERGROWTH(%) 32.25 23.94 (12.83) 17.57 NET SALES 178,735.50 133,213.79 107,300.57 124,935.02 104,312.99GROWTH(%) 34.17 24.15 (14.11) 19.76 TOTAL INCOME 180,585.38 137,984.87 111,434.20 123,584.67 107,597.62GROWTH(%) 30.87 23.82 (9.83) 14.85 7
  8. 8. CONTD….. _____ IN RS CRORE _____ TOTALEXPENSES 175,513.48 133,329.50 107,236.82 119,796.96 104,817.59GROWTH(%) 31.63 24.33 (10.48) 14.29OPERATING PROFIT 4,046.31 3,323.07 3,313.71 3,301.28 1,851.27GROWTH(%) 21.76 0.28 0.37 78.32NET PROFIT 911.43 1,539.01 1,301.37 574.98 1,134.88GROWTH(%) (0.02) 18.26 126.33 (49.33) 8
  9. 9. GLOBAL OIL NET PROFIT OF HPCL DEMAND 1800 INCREASED BOOSTING OF PRICES BY OPEC 1600 1539.01 1400 CURRENTR ACCOUNT 1301.37 DEFICITS 1200 1134.88I 1000N 911.43 800 NET PROFITCR 600 574.98OR 400 SUB PRIMEE MORTGAGES 200 CRISES WERE SEEN 0 MARCH12 MARCH11 MARCH10 MARCH09 MARCH08 ------- YEARS ------- 9
  10. 10. COMPETITOR’S FOR HPCL 10
  11. 11. COMPETITION WITH PEERS TOTAL MARKET NET PROFITS NET SALES ASSETS LAST PRICE CAPITALIZATI (2012) (2012) (2012) (BSE) ON (Rs. Cr) (Rs. Cr) (Rs. Cr) (Rs. Cr) (2012)RELIANCE 851.00 261,637.36 329,904.00 20,040.00 252,879.00 IOC 312.10 72,559.36 434,508.57 3,954.62 136,931.99 405.15 BPCL 27,874.90 211,972.97 1,311.27 45,296.63ESSAR OIL 86.75 11,273.58 59,723.99 -1,285.48 15,060.76 310.50 HPCL 10,240.09 178,735.50 911.43 50,842.64 11
  12. 12. NET SALES ( AS OF 2012) 500,000.00 450,000.00 434,508.57R 400,000.00S 350,000.00 329,904.00I 300,000.00N 250,000.00C NET SALES 200,000.00 211,972.97R 178,735.50O 150,000.00RE 100,000.00S 50,000.00 59,723.99 0.00 RELIANCE IOC BPCL ESSAR OIL HPCL ------ COMPANIES ------ 12
  13. 13. FUNDAMENTAL ANALYSIS 13
  14. 14. ECONOMIC ANALYSIS• The High Oil Prices Have Contributed To The Widening Of The Current Account Deficit• Oil Production In The Country Increased Marginally And Oil Imports Have Increased Over The Years• The Consumption Of Petroleum Products In India Despite The Slowdown In The Economy, Increased By 4.9% In 2011-2012 Compared To 2.6% In 2010-2011. Petroleum Products Consumption In 2011-12 Was About 151 Million Tons• With Pan-india Presence In Refining & Marketing,The Company Has Given About 25% Of The Countrys Retail Demand Of Petrol,diesel & Lpg.• Apart From Its Business It Has Also Invested In Exploration & Production,renewables,biofuels,gas 14
  15. 15. INDUSTRY ANALYSIS • SWOT ANALYSIS Strength – Weakness1. Network Of 1400 Retail Outlets And 1. Company Operations Are Bound ByMore Than 250 Retail Outlets In Govt Regulations And Fluctuations.Various Stage Of Construction2. State Of Art Technologies At 2. Net Sales Are Affected Due ToRefinery Increasing Cost4. Very Active In CSR Activities 3. Environmental Hazards From Wastages 15
  16. 16. Opportunity Threats1. Demand-Supply gap in India 1.Threats from competitors2.Increasing natural gas market 2. Competitors receiving subsidies onglobally taxes by central and state government3.Heavy industrialization causing an 3.Economic instability and fluctuationsincrease in demand for fuel in Indias policies 16
  17. 17. RATIO ANALYSIS 17
  18. 18. Liquidity Ratio HPCL RELIANCE IOC BPCL ESSAR OIL1) Current Ratio = Current Assets 0.79 1.68 1.25 0.74 0.61 Current Liabilities2) Quick Ratio = Quick Asset 0.14 1.17 0.71 0.59 0.40 Quick LiabilitiesSolvency Ratio1) Debt to Equity Ratio = Debt 2.87 0.50 1.24 1.69 2.91 Equity2) Debt Asset Ratio = Debt 0.63 0.37 0.52 0.51 0.56 Asset3) Interest Coverage Ratio = 3.17 9.30 2.94 1.71 0.67EBIT+Depreciation Interest 18
  19. 19. Profitability Ratio HPCL RELIANCE IOC BPCL ESSAR OIL1)Gross Profit Margin Ratio = 1.19 6.25 3.45 0.93 1.02 Gross Profit x 100 Sales2)Operating Profit Margin Ratio 0.01 9.71 4.75 1.82 2.99 Operating Profit Margin x 100 Sales3) Return on Capital EmployedRatio 6.37 10.83 12.83 9.03 3.95 EBDITFixed Assets + Working Capital + Capital Employed4) Net Profit Margin Ratio 0.50 5.43 1.02 0.39 0.08 Net profit x 100 Sales 19
  20. 20. Efficiency Ratio HPCL RELIANCE IOC BPCL ESSAR OIL1) Receivables Turnover Ratio = 2.26 5.13 2.63 2.45 3.40 Sales Receivables2) Inventory Turnover Ratio = 8.52 8.54 6.86 10.35 11.35 Inventories Cost of Goods Sold3) Working Capital Turnover Ratio= 36.18 6.89 11.16 21.61 33.11 Sales Working Capital 20
  21. 21. Valuation Ratio HPCL RELIANCE IOC BPCL ESSAR OIL1) Earning Per Share Ratio = 26.92 61.26 16.29 36.27 0.70 Profit After Tax Number of Shares2) Price Earning Ratio 11.16 13.48 18.89 9.32 125.71 Market Price EPS3) Dividend Payout Ratio 0.31 0.12 0.30 0.25 -/- Dividend Profit After Tax4) Book Value Per Share 387.10 498.21 248.66 439.23 25.47 Net Worth Number of Shares 21
  22. 22. P/E Ratio 140 120 100RA 80TE 60 P/E RatioS 40 20 0 HPCL RELIANCE IOC BPCL ESSAR OIL ------- Company Name ------- 22
  23. 23. TECHNICAL ANALYSIS 23
  24. 24. 24
  25. 25. FUTURE OUTLOOK• The Target Price For HPCL Is 335• The Company Is Coming Out With A Joint Venture With Rajiv Gandhi Institute Of Petroleum Technology (RGIPT)• As Per The Fundamental Analysis The Company Is Good To Invest For Long Term Investments• Technically the company would be less profitable to invest in short term 25
  26. 26. WEBLIOGRAPHY• ANNUAL REPORT OF THE COMPANY• MONEYCONTROL.COM• INDIANSPLASH.COM• HINDUSTANPETROLEUM.COM• TRADEECONOMICS.COM• MONEY.REDIFF.COM 26
  27. 27. THANKYOU 27

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