Having said that, the upside will be better for HPCL than for BPCL. For example, if there is any increase in petroleum product prices, it should be more positive for HPCL (keeping other factors constant). ‘Self sufficiency’ in generating sales As we can see from the chart, when it comes to self reliance in sales generation, BPCL fares better.
Should I invest in BPCL or HPCL?
However, BPCL and HPCL look good in terms of interest coverage ratio. Usually interest coverage ratio above 2.5 x is preferable. Being PSU companies, dividend yield is better as compared to private companies. 4. Sales Growth Overall the sales growth of companies is flat over the years (3,5 and 10).
Is BPCL’s premium valuation worth it?
As seen, BPCL has better return ratios ( RoCE and RoE) as compared to its peers and hence justifies its premium valuation to certain extent. All the three companies have higher debt to equity ratios because of the capital intensive nature of the sector. However, BPCL and HPCL look good in terms of interest coverage ratio.
What is the PE of BPCL vs HPCL?
BPCL has a PE of 4.05 whereas shares of HPCL trade at a PE of 4.55. Both the companies trade at a low valuation below the Industry average PE of 13.7.
What is the market share of HPCL in India?
It is second largest oil marketing company in India with a market share of 22% in domestic sales volume. Also , it is the third largest in terms of refining capacity in India (15.33% of India’s refining capacity). HPCL is an Indian oil and natural gas company incorporated in 1952 as Standard Vacuum Refining Company.
Which is better to invest BPCL or HPCL?
Ratios. The oil and gas industry is highly capital-intensive, the debt-to-equity ratios of all three companies are slightly on the higher side. That being said, BPCL has the lowest debt-to-equity ratio amongst its two peers, followed by IOCL and HPCL.
What is difference between HPCL and BPCL?
Having said that, the upside will be better for HPCL than for BPCL....So what is driving BPCL's valuations higher ?Operational ParametersBPCLHPCLMarket Sales including exports(MMT)32.1927.03Domestic market sales (MMT)29.5825.50Gross refining margins (US$ per barrel)4.475.30Retail outlets9,29010,2126 more rows•Apr 10, 2012
Is HPCL good for long term investment?
To summarise, HPCL has a robust business model, sound management team, stong earnings growth (6x growth in PAT), good dividend payout (30 percent to 40 percent payout), high earnings yield (15 percent ), low P/E (6), good ROE (30.98) and fairly low PB ratio (1.74), and sound future growth strategy, all of which point ...
Is BPCL good buy?
It has a Buy rating on the stock with a target price of Rs 420, implying over 15 per cent potential rally. “Our SOTP valuation factors in BPCL's refining segment at 5x EV/E, marketing and pipeline segments at 6x EV/E and investments at 25% discount to current market price.
Which petrol is best Indian oil or HP?
Premium Fuel is considerably pricer that your regular fuel. Major Indian oil companies like BPCL, IOCL, HPCL guarantee a better mileage and long-run performance of the car with their premium fuel. In India unleaded petrol typically has octane ratings of 87, whereas premium fuel has an octane level of 93–94.
Which is the best petrol bunk in India?
List of Top 6 Best Quality Brands of Petrol Pumps in IndiaIndian Oil Corporation Limited (IOCL)Bharat Petroleum Corporation Limited (BPCL)Hindustan Petroleum Corporation Limited (HPCL)Reliance Industries Ltd.(RIL)Shell India Private Limited (Shell)Essar Oil(Nayara Energy)
Which share will grow in future?
growth stocks for futureS.No.NameROCE %1.EKI Energy236.482.Elpro Internatio154.153.RattanIndia Ent118.154.Hinduja Global117.8322 more rows
Is HPCL a good company?
HPCL is most highly rated for Management and Indian Oil Corporation is most highly rated for Job security and advancement....Overall Rating.Overall Rating4.14.3Culture3.94.04 more rows
Which share best for long term?
A detailed table with various parameters for Best Long term Stocks to buySr No.COMPANY NAMEROCE %1Caplin Point Labs30.342Marico44.523Avanti Feeds19.294Tata Metaliks21.211 more row•Jun 14, 2022
Is it good to invest in HPCL?
Domestic sales volume growth of 4% yoy was better than the industry/IOCL/estimates. Assuming marketing inventory gain (undisclosed) of Rs 20bn, Emkay Global estimates HPCL's blended margin fared better than expected at Rs 1.8/kg (Rs 0.5/kg est).
Is BPCL share good for long term?
Deepak Mohoni: BPCL is a buy and also a good long term investment. If we take a time frame from 2008 January peak where the market had topped out, we have never got backed that again. BPCL at the moment is 5%-6% above that level. The index is 25% below that level.
Which share is best to buy?
Stocks to Buy Today: Best Shares to Buy in IndiaNameLTPLowBajaj Auto3,848.653,841Bajaj Finance5,822.205,821Bajaj Finserv11,736.0011,723Bharti Airtel632.5062911 more rows
BPCL Vs IOCL Vs HPCL: Detailed Comparative Analysis
The video offers an in-depth analysis of the significant oil and gas companies. It provides a peer comparison of the major companies in the oil & gas industry, catering to HPCL vs IOCL, HPCL vs BPCL & BPCL vs IOCL. It offers a detailed description of the shareholding pattern of these petroleum companies.
IOCL Vs BPCL Vs HPCL: Company Ratio & Financials
The video also provides figures of the historical median P/E, further comparing with the current PE. The ratio analysis of Indian Oil vs Bharat Petroleum vs Hindustan Petroleum is also discussed in the video. This offers comparative ratio analysis, consulting ratios like ROCE, ROE, Debt to Equity, Interest Coverage Ratio & Dividend yield.
HPCL Vs BPCL Vs IOCL : Make A Viable Investment Decision
The users will get a detailed comparison of the major petroleum companies. If you are an investor & have questions like better BPCL or HPCL or IPCL, we have got your back.
IOCL
Swarnendu Bhushan and Sarfraz Bhimani, Research Analysts at Motilal Oswal said, “IOCL is commissioning polypropylene plant at Paradip; it has already commissioned 5mmtpa Ennore LNG terminal.
HPCL
On this OMC, analysts at Motilal said, “Concerns around the ability of the OMCs to take price hikes amid elections are overdone and clarity over marketing margins would benefit HPCL the most. However, due to high capex (Vizag expansion and Rajasthan refinery-cumpetrochem complex), free cash flow is likely to remain negative in FY20, in our view.
BPCL
According to Motilal experts, “BPCL Kochi refinery saw throughput of 4.4mmt (+11% YoY, +20% QoQ), in line with the expected stabilization. BPCL has a 10% stake in the prolific Offshore Area 1 in Mozambique. After almost a delay of 4-5 years, the final investment decision is likely to be concluded in 2019. BPCL is trading at 8.2x FY20E consol.
Industry Overview – Oil and Gas Industry
- Despite being an open fact that the industry will one day be phased out the reliance already makes it an ardent task for the next decade. Instead, the oil demand in India is expected to double to reach 11 million barrels by 2045. Currently, diesel and gasoline the most used oils are expected to cover 58% of India’s total oil demand. Natural gas in India is expected to have an average annua…
Business Overview – BPCL vs HPCL
- BPCL
Bharat Petroleum Corporation Ltd. is a state-run oil refinery that has its roots back in the colonial period of 1891. The company is currently under the ownership of the Ministry of Petroleum and Natural Gas. It is India’s 2nd largest downstream state oil corporation. The company is a Mahar… - HPCL
This state-run entity finds its roots back in 1910. Today the company is a subsidiary of ONGC which is also under the ownership of the Ministry of Petroleum and natural gas. The company currently holds a 25% market share amongst Indian public sector undertakings. A lesser-known f…
Financial Metrics – BPCL vs HPCL
- Revenue
In FY21, HPCL earned a revenue of Rs 1,11,531 Cr whereas BPCL was able to earn Rs 230,162 Cr. However considering the huge difference in the sizes of the company, comparing their annual revenues would not offer a clear picture. Here let us take a look at the potential offered by the tw… - Profitability
When it comes to profits HPCL set a milestone in 2021 after earning the highest ever PAT of Rs. 10,664 cr. This was a 3-time increase over that of 2020. BPCL’s profits have increased from Rs. 2265 cr in 2020 to Rs. 17645 cr in 2021. This gives BPCL a 3-year negative CAGR of 44.06%. Th…
in Closing
- In this article, we compared two very similar companies HPCL vs BPCL on various metrics. While investing in the industry despite many forecasts in its favor, investors must make note of the disruptive nature of electricity and other green energy. The major determining factor here will be the speed of acceptance of these alternatives across India. That’s all for this post, let us know w…
Shareholding Pattern as on June’20
Market valuation
- Oil Marketing companies Market Valuation 1. As we can see, BPCL’s market cap, share price history and PE have increased mainly as the Government of India is looking forward to divesting its stake in BPCL. 2. This is evident from the company’s historical median PE, as the current PE is ~40% higher than the hisorical median PE.
Ratio Analysis
- Oil Marketing Companies Ratio Analysis 1. Oil refiningis a very capital intensive sector, hence it is important to look at return ratios like RoCE and RoE of BPCL HPCL and IOCL 2. As seen, BPCL has better return ratios (RoCE and RoE) as compared to its peers and hence justifies its premium valuation to a certain extent. 3. All the three companies h...
Sales Growth
- Oil Marketing Companies Sales growth 1. Overall the sales growth of companies is flat over the years (3,5 and 10). Also , the revenues were hit badly this year due to COVID-19 pandemic. 2. One of the reasons for muted growth can be changing consumer preferences for alternative energy resources as compared to conventional sources. Also the increasing traction of electric vehicle…
Net Profit Growth
- Oil Marketing Companies Net Profit growth 1. On the profitability front, BPCL HPCL IOCL, all three companies have muted profit growth at least for a 3 year period and on TTM basis. 2. There are many profitability challenges mainly due to the government intervention in pricing and taxes charged.
Refining Market Share
- Oil Marketing Companies Refining Market Share 1. Here, IOCL is the leader in refining followed by Reliance Industries.
Product Sales
- Oil Marketing Companies Product Sales (MMT) 1. In the current quarter, product sales declined, but before this quarter, they were growing.
Gross Refining Margins
- Oil Marketing Companies Gross Refining Margins (US$ / bbl) 1. Gross Refining margin is (Value of Output Petroleum Products from oil refinery – Price of Raw Material i.e. Crude Oil). It is calculated on a per barrel basis. 2. As seen, for the last 2 quarters, the margins are very low mainly because of the pandemic. 3. However ,till Q3FY20, all companies had stable margins in the range of 0.8% …