Today in this article we are going to talk in detail about HPCL Limited. In which we will try to find out the strengths and weaknesses of the company through detailed analysis of the company. Along with this, we will also discuss in detail about HPCL Share Price Target 2023, 2024, 2025, 2026, 2030. So stay tuned with this interesting article.
HPCL Share Price Target 2023, 2024, 2025, 2026, 2030
HPCL Limited, established in the year 1974, is engaged in Oil & Gas sector. The headquarters of the company are located in Mumbai, Maharashtra. Presently 10,352 employees are working in the company.
Company Information: |
|
|---|---|
| CMD | Dr. Pushp Kumar Joshi |
| Headquarter | Mumbai, India |
| Market Capitalization | Approx. ₹ 33,889 Cr. |
| Sector / Industry | Refineries Sector |
| Official Website | hindustanpetroleum.com |
HPCL Share Price Target 2023
Hindustan Petroleum Corporation Limited is primarily engaged in the business of providing services for refining of crude oil and marketing of petroleum products, production of hydrocarbons as well as management of E&P blocks.
The total capacity of the company is ~21.5 MMTPA which is currently fully utilized by the company. If the company is able to increase its capacity in the coming times, then there can be a good improvement in the revenue of HPCL.
According to the valuation, the book value of the company is currently ₹198. The company has made a loss of ₹ -2,476 in the last quarter due to which the stock is currently under pressure. The first target for HPCL Share Price Target 2023 will be ₹252 while the second target will be ₹264.
Getting long term good returns in this type of business can be a difficult task. As this stock has given negative CAGR returns of -5.50% in last three years. Anyway, there has been a history of PSU companies that they give good dividends but less growth is seen in them.
HPCL Share Price Target 2024
The company is pursuing aggressive CAPEX plans of ~ ₹ 39,000 crore from FY21 to FY23 which also includes equity investment of ~ ₹ 7,200 crore in the JV. Following are the major capex projects of HPCL:-
To expand and modernize its refineries at Mumbai and Visakhapatnam. The company plans to expand the capacity of Mumbai refinery to 9.5 MMTPA and Visakhapatnam refinery to 15 MMTPA.
Refinery-cum-petrochemical complex in Rajasthan (74% stake)
LNG terminal in Gujarat (50% stake)
Thus the company is continuously running projects to expand itself. If all these projects are successful then it can be expected that the company will be able to show good growth.
The first target for HPCL Share Price Target 2024 is ₹273 while the second target can be achieved as ₹289.
HPCL Share Price Target 2025
The company has also been making acquisitions continuously. In March 2021, the company bought Shapoorji Group's 50% stake in HPCL Shapoorji Energy Pvt Ltd for ~₹397 crore. Also, the company is in the process of setting up a 5 MMTPA LNG storage and regasification terminal at Chhara, Gujarat.
Hindustan Petroleum Corporation Limited has some serious problems in its financials which are affecting the company's performance. Like company's law sales growth, law profit growth. Also ₹ 43,192.91 Cr. on HPCL. Huge debt is also seen, which is a matter of concern.
The performance of HPCL Ltd in the year 2022 has been very poor. If this continues, then the company may have to face more problems in the coming times. The first target in HPCL Share Price Target 2024 can be achieved at ₹306. If the first target is met, then ₹322 levels can be seen soon.
HPCL Share Price Target 2026
At present, oil refining and marketing activity is very important for the economic development of India. Currently, OMCs dominate the Indian markets for major petroleum products, such as motor spirit, high-speed diesel, SKO and LPG. Therefore, the company remains strategically important to the Government of India. These are huge positives of HPCL.
The company is currently working on several projects including modernization and capacity expansion at Mumbai and Visakhapatnam refineries, setting up of a greenfield refinery at Barmer (Rajasthan), modernization and augmentation of pipeline infrastructure, and expansion in natural gas sector. In implementing and operating large projects, the proper execution of HPCL projects will be a big task.
The first target for HPCL Share Price Target 2026 can be ₹355 while the second target can be achieved as ₹368.
HPCL Share Price Target 2030
Getting long term good returns in this type of business can be a difficult task. As this stock has given negative CAGR returns of -5.50% in last three years. Anyway, there has been a history of PSU companies that they give good dividends but less growth is seen in them.
In the last one year, there has been a huge decline in the financials of the company. If the management of the company is able to come out of this problem at the right time, then a good recovery can be seen in the stock.
The first target for HPCL Share Price Target 2030 can be ₹480. As a second target, levels up to ₹509 can be achieved.
Company's business model
The company is engaged in the business of Crude Oil Refining and Marketing of Petroleum Products, Aviation Bulk Fuels and Specialties, International Trading, LPG (HP Gas), Lube (HP Lube), Retail (Petrol Pump, etc.), Alternative Energy and Marketing .
The company (before 1974 as Esso and Caltex) is also providing aviation refueling services at various airports in India. HPCL is committed to achieve the economic, ecological and social responsibility objectives of sustainable development through various functions and activities.
In January 2018, ONGC acquired 51.11% stake in HPCL from the Government of India. HPCL is an integrated refining and marketing company. The company has substantial oil marketing operations, and is also the third largest oil refining and marketing company in India.
Company's Strengths
Financials Strengths:
- The company has a healthy interest coverage ratio of 9.43.
- Attractive valuation.
- The company has an efficient cash conversion cycle of 13.01 days.
- Share on free cash flow of 18.35.
- ROE of 19.67% has been maintained in the last 3 years.
- High promoters holding in the company.
Other Strengths:
- Support of Government of India.
- Established position in the oil refining and marketing sector.
Company's Weaknesses
Financial Weaknesses:
- The company has shown poor profit growth of 1.92% in last 3 years.
- HPCL has shown poor revenue growth of 8.31% in last 3 years.
- The EBITDA margin of the company is continuously decreasing.
- Both current ratio and quick ratio are below standard.
- ₹ 74,332 Cr. High debt burden of.
- Project implementation risk in view of large investment plans.
- Lack of pricing power.
| Shareholding Pattern: | |
|---|---|
| Promoters | 54.90% |
| Public | 10.37% |
| FII | 16.73% |
| DII | 17.99% |
| Others | 0% |
Competitors of HPCL Ltd
- Reliance Industries
- BPCL
- IOCL
- Chennai Petrol Corp.
- Continental Petrol
- MRPL
| HPCL Share Target Price For Long Term | |
|---|---|
| First Target(2023) | ₹252 |
| Second Target | ₹264 |
| First Target(2024) | ₹273 |
| Second Target | ₹289 |
| First Target(2025) | ₹306 |
| Second Target | ₹322 |
| First Target(2026) | ₹355 |
| Second Target | ₹368 |
| First Target(2030) | ₹480 |
| Second Target | ₹509 |
Conclusion:
HPCL is currently facing some problems. Because of which the stock price is also not increasing much. The company constantly spends on capex. This is the reason that the company has a huge debt burden.
So if one wants to invest in such a company then he/she should keep all the risk factors in mind.
So friends, today we have discussed HPCL India Share Price Target 2023, 2024, 2025, 2026 and 2030. Friends, if you liked this information, please share it with your companions on social media networks. Your valuable suggestions are invited in the below comment box.
Disclaimer: No investment advice has been given in this post, these posts have been written for educational purpose. We are not SEBI Registered Advisor. Please do your own research or seek the advice of your financial advisor before making any investment.