Hindustan Petroleum (HPCL) Complete Fundamental Analysis

Description
Hindustan petroleum incorporated in 1952 as Standard Vacuum Oil refining company (StanVac) was amalgamated with ESSO and Lube India in 1974 to form HPCL. The ONGC-HPCL merger was completed in January 2018 after ONGC bought the government's entire 51 % stake in HPCL for Rs 36,915 crore. The company is involved in Oil refining, Lubricants, Aviation fuels, Natural Gas and Renewable energy. It has a pipeline network of 3,370 km making it one of the largest refiner and distributor in India.

The company has developed a robust infrastructure over the years along with state of the art technologies. HPCL ranks 58 in the Platts top 250 global energy companies and has 15,440 retail outlets in India. It currently has 42 terminals, 75 depots, 49 LPG plants and 43 lube building plants. It had a total of 4.1 million metric tonnes of Petroleum, Oil and Lubricant (POL) storage in FY 2019. Such infrastructure is hard to replicate by any new entrant in the market and gives some economic advantage to the company.

The Model covers all the major fundamental aspects of Hindustan Petroleum over the ten year period. The model is easy to edit and update for the future years as well. It includes:
1. Growth Ratios
2. Profitability Ratios
3. Cash Flow Ratios
4. Liquidity and Solvency Ratios
5. Efficiency Ratios
6. Valuation Ratios
7. ROE (Du Pont Analysis)
8. Common Size analysis
9. Enterprise Valuation
10. Financial Strength Analysis

Further Qualitative analysis is also done considering these factors and ratings have been assigned. The complete detailed analysis is in the word document along with the Excel model.