DISCLAIMER:–
INVESTING IN THE STOCK MARKET INVOLVES RISKS. THE INFORMATION PROVIDED IS FOR GENERAL INFORMATIONAL PURPOSES ONLY AND SHOULD NOT BE CONSTRUED AS FINANCIAL ADVICE. INVESTORS ARE ADVISED TO CONDUCT THEIR OWN RESEARCH AND CONSULT WITH A CERTIFIED FINANCIAL ADVISOR BEFORE MAKING INVESTMENT DECISIONS. STOCK PRICES AND FINANCIAL METRICS ARE SUBJECT TO MARKET FLUCTUATIONS AND MAY CHANGE OVER TIME.
HINDUSTAN PETROLEUM CORPORATION LIMITED (HPCL) IS A MAHARATNA PUBLIC SECTOR UNDERTAKING (PSU) UNDER THE MINISTRY OF PETROLEUM AND NATURAL GAS, GOVERNMENT OF INDIA. ESTABLISHED IN 1974, HPCL EMERGED FROM THE MERGER AND NATIONALIZATION OF TWO ESSO SUBSIDIARIES: ESSO STANDARD AND LUBE INDIA LIMITED. SINCE ITS INCEPTION, HPCL HAS PLAYED A VITAL ROLE IN INDIA’S ENERGY SECTOR, CONTRIBUTING SIGNIFICANTLY TO THE NATION’S ECONOMIC GROWTH AND ENERGY SECURITY.
EARLY YEARS:-
POST-NATIONALIZATION, HPCL FOCUSED ON ESTABLISHING A ROBUST NETWORK OF REFINING AND MARKETING INFRASTRUCTURE. IT LAUNCHED SEVERAL INNOVATIVE PRODUCTS AND SERVICES THAT SET INDUSTRY BENCHMARKS.
EXPANSION PHASE:–
DURING THE 1980S AND 1990S, HPCL EXPANDED ITS REFINING CAPACITY AND DIVERSIFIED ITS PORTFOLIO. THE COMPANY BUILT MAJOR REFINERIES IN MUMBAI AND VISAKHAPATNAM, WHICH REMAIN KEY ASSETS.
MODERNIZATION:-
IN THE 2000S, HPCL INVESTED IN ADVANCED TECHNOLOGIES, DIGITAL TRANSFORMATION, AND ENVIRONMENTAL SUSTAINABILITY INITIATIVES. IT BECAME A PIONEER IN IMPLEMENTING CLEAN FUEL TECHNOLOGIES, ALIGNING WITH GLOBAL EMISSION STANDARDS.
RECENT DEVELOPMENTS:-
HPCL HAS FORAYED INTO RENEWABLE ENERGY, BIOFUELS, AND PETROCHEMICAL SEGMENTS TO STAY AHEAD IN THE EVOLVING ENERGY LANDSCAPE. THE COMPANY CONTINUES TO ENHANCE ITS REFINING AND DISTRIBUTION CAPACITIES WHILE MAINTAINING ITS COMMITMENT TO SUSTAINABILITY AND INNOVATION.
STOCK HISTORY AND CORPORATE ACTIONS:-
INITIAL PUBLIC OFFERING (IPO):-
HINDUSTAN PETROLEUM CORPORATION LIMITED (HPCL) WAS LISTED ON THE STOCK EXCHANGE AND HAS BEEN PUBLICLY TRADED SINCE ITS INCORPORATION. ITS IPO MARKED THE BEGINNING OF ITS JOURNEY AS A PUBLICLY TRADED ENTITY.
BONUS ISSUES:-
JUNE 2024:–
BONUS SHARES ISSUED IN A 2:1 RATIO (TWO ADDITIONAL SHARES FOR EVERY ONE SHARE HELD).
JUNE 1994:–
FIRST-EVER BONUS ISSUE IN THE HISTORY OF HPCL.
STOCK SPLITS:-
HPCL HAS NOT UNDERTAKEN ANY STOCK SPLITS SINCE JANUARY 1, 2000. BELOW IS A TABULAR REPRESENTATION OF STOCK SPLITS IN HPCL’S HISTORY:
| DATE | SPLIT RATIO | REASON/REMARKS |
| NOT APPLICABLE | NOT APPLICABLE | HPCL HAS NOT UNDERTAKEN STOCK SPLITS YET. |
DIVIDEND HISTORY:-
BELOW IS A TABULAR REPRESENTATION OF HPCL’S DIVIDEND HISTORY SINCE ITS IPO:
| YEAR | DIVIDEND (₹/SHARE) | TYPE |
| 2024 | 11.00 | FINAL |
| 2024 | 15.00 | INTERIM |
| 2022 | 14.00 | FINAL |
| 2021 | 22.75 | FINAL |
| 2020 | 9.75 | FINAL |
| 2019 | 9.40 | FINAL |
| 2018 | 17.00 | FINAL |
| 2017 | 30.00 | FINAL |
| 2016 | 12.00 | FINAL |
| 2015 | 6.00 | FINAL |
| 2014 | 14.50 | FINAL |
CURRENT STOCK METRICS (AS OF JANUARY 2, 2025):-
CURRENT MARKET PRICE (CMP):-
₹412.35 PER SHARE.
DIVIDEND YIELD:–
APPROXIMATELY 7.64%, CALCULATED AS DIVIDENDS PAID PER SHARE DIVIDED BY THE MARKET PRICE.
BOOK VALUE:–
₹291.87 PER SHARE, REFLECTING THE NET ASSET VALUE ATTRIBUTABLE TO EACH SHARE.
FACE VALUE:-
₹10 PER SHARE, REPRESENTING THE NOMINAL VALUE OF EACH SHARE AS STATED ON THE CERTIFICATE.
FUTURE PROSPECTS:-
HPCL HAS AMBITIOUS PLANS FOR GROWTH AND DIVERSIFICATION:
CAPITAL EXPENDITURE PLANS:–
OVER THE NEXT FIVE YEARS, HPCL AIMS TO INVEST ₹75,000 CRORE IN REFINING CAPACITY EXPANSION, RENEWABLE ENERGY, AND INFRASTRUCTURE PROJECTS.
REFINERY EXPANSION:-
VISAKHAPATNAM REFINERY:–
INCREASING CAPACITY FROM 8.3 MMTPA TO 15 MMTPA.
RAJASTHAN REFINERY:–
SCHEDULED TO COMMENCE OPERATIONS BY MARCH NEXT YEAR, WITH SIGNIFICANT PROGRESS MADE IN CONSTRUCTION.
LNG TERMINAL:-
A 5 MMTPA LNG REGASIFICATION TERMINAL AT CHHARA PORT IN GUJARAT IS NEARING COMPLETION AND IS EXPANDABLE TO 10 MMTPA.
RENEWABLE ENERGY INITIATIVES:-
INVESTMENTS IN RENEWABLE ENERGY, BIOFUELS, AND NATURAL GAS.
TARGETING NET-ZERO SCOPE 1 & 2 EMISSIONS BY 2040.
ANALYST PROJECTIONS:-
ANALYSTS’ CONSENSUS PRICE TARGET FOR HPCL IS ₹396.72, WITH A RANGE OF ₹200 TO ₹558 BASED ON ANTICIPATED EARNINGS GROWTH AND PROFITABILITY.
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