3. COMPANY OVERVIEW
On 5th July 1952 The Company Was Incorporated With The Name Of
Standard Vaccum Refining
On 31st March 1962 The Company Name Was Changed To Esso Standard
Refining 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 Major
Integrated Oil Refining And Marketing Companies In India. It Is A Mega Public
Sector Undertaking (Psu).
The Major Refineries Of HPCL Are At Mumbai,vishakaptnam,manglore And
Punjab.
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4. COMPANY OVERVIEW (Contd)
HPCL Also Owns And Operates The Largest Lube Refinery In India Producing Lube
Base 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 For
Production, People For Petrol Diesel For Vehicles And Domestic Uses
The Chairman And The Managing Director Of HPCL Is Mr. S. Roy Choudhary
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5. SHAREHOLDING PATTERN %
SHAREHOLDING PATTERN
0.08
0.29 13.31
12.45
0.13
51.11
8.66
13.97
THE PRESIDENT OF INDIA FINANCIAL INSTITUTIONS FII's/OCB's
BANKS MUTUAL FUNDS NRI's
EMPLOYEES-PHYSICAL PUBLIC
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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 0.29
EMPLOYEES - PHYSICAL 270845 0.08
PUBLIC 54465407 13.31
TOTAL 338627250 100 6
9. GLOBAL OIL NET PROFIT OF HPCL
DEMAND
1800 INCREASED
BOOSTING OF
PRICES BY OPEC
1600
1539.01
1400 CURRENT
R ACCOUNT
1301.37
DEFICIT
S 1200
1134.88
I 1000
N 911.43
800 NET PROFIT
C
R 600 574.98
O
R 400
SUB PRIME
E MORTGAGE
S 200 CRISES WERE
SEEN
0
MARCH'12 MARCH'11 MARCH'10 MARCH'09 MARCH'08
------- YEARS ------- 9
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 45,296.63
ESSAR 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
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12. NET SALES ( AS OF 2012)
500,000.00
450,000.00
434,508.57
R 400,000.00
S
350,000.00
329,904.00
I 300,000.00
N
250,000.00
C NET SALES
200,000.00 211,972.97
R
178,735.50
O 150,000.00
R
E 100,000.00
S
50,000.00 59,723.99
0.00
RELIANCE IOC BPCL ESSAR OIL HPCL
------ COMPANIES ------ 12
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
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15. INDUSTRY ANALYSIS
• SWOT ANALYSIS
Strength – Weakness
1. Network Of 1400 Retail Outlets And 1. Company Operations Are Bound By
More Than 250 Retail Outlets In Govt Regulations And Fluctuations.
Various Stage Of Construction
2. State Of Art Technologies At 2. Net Sales Are Affected Due To
Refinery Increasing Cost
4. Very Active In CSR Activities
3. Environmental Hazards From
Wastages
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16. Opportunity Threats
1. Demand-Supply gap in India 1.Threats from competitors
2.Increasing natural gas market 2. Competitors receiving subsidies on
globally taxes by central and state government
3.Heavy industrialization causing an 3.Economic instability and fluctuations
increase in demand for fuel in India's policies
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18. Liquidity Ratio HPCL RELIANCE IOC BPCL ESSAR
OIL
1) Current Ratio = Current Assets 0.79 1.68 1.25 0.74 0.61
Current Liabilities
2) Quick Ratio = Quick Asset 0.14 1.17 0.71 0.59 0.40
Quick Liabilities
Solvency Ratio
1) Debt to Equity Ratio = Debt 2.87 0.50 1.24 1.69 2.91
Equity
2) Debt Asset Ratio = Debt 0.63 0.37 0.52 0.51 0.56
Asset
3) Interest Coverage Ratio = 3.17 9.30 2.94 1.71 0.67
EBIT+Depreciation
Interest
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19. Profitability Ratio HPCL RELIANCE IOC BPCL ESSAR
OIL
1)Gross Profit Margin Ratio = 1.19 6.25 3.45 0.93 1.02
Gross Profit x 100
Sales
2)Operating Profit Margin Ratio 0.01 9.71 4.75 1.82 2.99
Operating Profit Margin x 100
Sales
3) Return on Capital EmployedRatio 6.37 10.83 12.83 9.03 3.95
EBDIT
Fixed Assets + Working Capital +
Capital Employed
4) Net Profit Margin Ratio 0.50 5.43 1.02 0.39 0.08
Net profit x 100
Sales
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20. Efficiency Ratio HPCL RELIANCE IOC BPCL ESSAR
OIL
1) Receivables Turnover Ratio = 2.26 5.13 2.63 2.45 3.40
Sales
Receivables
2) Inventory Turnover Ratio = 8.52 8.54 6.86 10.35 11.35
Inventories
Cost of Goods Sold
3) Working Capital Turnover Ratio= 36.18 6.89 11.16 21.61 33.11
Sales
Working Capital
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21. Valuation Ratio HPCL RELIANCE IOC BPCL ESSAR
OIL
1) Earning Per Share Ratio = 26.92 61.26 16.29 36.27 0.70
Profit After Tax
Number of Shares
2) Price Earning Ratio 11.16 13.48 18.89 9.32 125.71
Market Price
EPS
3) Dividend Payout Ratio 0.31 0.12 0.30 0.25 -/-
Dividend
Profit After Tax
4) Book Value Per Share 387.10 498.21 248.66 439.23 25.47
Net Worth
Number of Shares
21
22. P/E Ratio
140
120
100
R
A
80
T
E
60 P/E Ratio
S
40
20
0
HPCL RELIANCE IOC BPCL ESSAR OIL
------- Company Name ------- 22
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
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26. WEBLIOGRAPHY
• ANNUAL REPORT OF THE COMPANY
• MONEYCONTROL.COM
• INDIANSPLASH.COM
• HINDUSTANPETROLEUM.COM
• TRADEECONOMICS.COM
• MONEY.REDIFF.COM
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