Hindustan Petroleum Corporation Limited (HINDPETRO.NS) stock analysis

In our weekly check, Hindustan Petroleum Corporation Limited is graded C (A to F). Of 24 checks on debt, profit, cash flow and trend: 13 pass, warnings: 5, red flags: 6.

About Hindustan Petroleum Corporation Limited

Hindustan Petroleum Corporation Limited is an Energy company (Oil & Gas Refining & Marketing) based in India, listed on NSE as HINDPETRO.NS.

What our checks show for HINDPETRO.NS

Red flags

• Operating profit does not cover the interest bill (0.1x): interest is paid from cash or new debt.
• The net margin is only 4.1%: little room if costs rise.
• The dividend takes 1736% of profit: little cushion if profit falls.
• The stock has fallen as much as 70% from a peak. Would you have held through that?
• The share count grew by 50% in 2 years: each shareholder owns a smaller slice.
• Return on capital (ROCE) is only 1.3%.

Warning signs

• Net debt is 1.6x a year of EBITDA (debt/equity 1.4). That limits room in a downturn and raises refinancing risk.
• Analysts expect earnings per share to shrink about 8.1% a year.
• Analysts expect the net margin to shrink by 1.9 points from today's 4.1%.
• Revenue grew only 0.2% a year over the last 3 years.
• The price swings a lot: 35.3% annual volatility. Expect large ups and downs.

Strengths

• The net margin rose by 2 points over 5 years, to 4.1%.
• The gross margin is 10.3% and has risen by 3.2 points: pricing power is holding.
• Operating cash flow is 1.83x net profit: the profit arrives as real cash.
• Earnings per share grew 19.9% a year over the last 3 years.
• Actively traded: about 4.9 million shares a day.
• Pay in shares is only 0% of free cash flow.

Next earnings report: 2027-01-28

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Questions

What grade does Hindustan Petroleum Corporation Limited (HINDPETRO.NS) have?

In our weekly check, Hindustan Petroleum Corporation Limited is graded C (A to F). Of 24 checks on debt, profit, cash flow and trend: 13 pass, warnings: 5, red flags: 6. The grade is a risk check, not a buy or sell recommendation.

What are the main risks of HINDPETRO.NS stock?

This week's biggest flags for Hindustan Petroleum Corporation Limited: Weak interest cover, Thin margins, Dividend stretched. In total 11 of 24 checks show a warning or a red flag.

What does Hindustan Petroleum Corporation Limited do?

Hindustan Petroleum Corporation Limited is an Energy company (Oil & Gas Refining & Marketing) based in India, listed on NSE as HINDPETRO.NS.

When does Hindustan Petroleum Corporation Limited report earnings next?

The next earnings report is expected on 2027-01-28. We re-run the checks every week, so the grade can change after it.

The grade is a risk check, not a price forecast, and not investment advice. In our 10-year test (S&P 500, 2016-2026), stocks we graded A or B fell more than 30% 2-3 times less often than D or F, without a lower average return.

Updated 2026-10-31

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