ScoreWhy is Hindustan Oil Exploration Company Ltd ?
1
Strong ability to service debt as the company has a low Debt to EBITDA ratio of 0.58 times
2
Poor long term growth as Operating profit has grown by an annual rate -19.86% of over the last 5 years
3
The company has declared Negative results for the last 5 consecutive quarters
- PAT(Latest six months) At Rs 16.05 cr has Grown at -83.01%
- NET SALES(9M) At Rs 184.50 cr has Grown at -35.20%
- NON-OPERATING INCOME(Q) is 74.36 % of Profit Before Tax (PBT)
4
With ROE of 8, it has a Very Expensive valuation with a 1.6 Price to Book Value
- The stock is trading at a premium compared to its peers' average historical valuations
- Over the past year, while the stock has generated a return of -5.02%, its profits have fallen by -79%
5
Despite the size of the company, domestic mutual funds hold only 0% of the company
- Domestic mutual funds have capability to do in-depth on-the-ground research on companies- their small stake may signify either they are not comfortable at the price or the business
6
Consistent Underperformance against the benchmark over the last 3 years
- Along with generating -5.02% returns in the last 1 year, the stock has also underperformed BSE500 in each of the last 3 annual periods
Real-Time Research ReportHow much should you hold?
- Overall Portfolio exposure to Hind.Oil Explor. should be less than 10%
- Overall Portfolio exposure to Oil should be less than 30%
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Oil)
When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock
Is Hind.Oil Explor. for you?
High Risk, Medium Return
Absolute
Risk Adjusted
Volatility
Hind.Oil Explor.
-5.02%
-0.11
44.21%
Sensex
-7.55%
-0.58
13.06%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
18.24%
EBIT Growth (5y)
1.66%
EBIT to Interest (avg)
5.63
Debt to EBITDA (avg)
2.03
Net Debt to Equity (avg)
0
Sales to Capital Employed (avg)
0.33
Tax Ratio
Tax Ratio is Negative%
Dividend Payout Ratio
0
Pledged Shares
0
Institutional Holding
1.61%
ROCE (avg)
10.89%
ROE (avg)
11.84%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
71
Industry P/E
12
Price to Book Value
1.61
EV to EBIT
65.97
EV to EBITDA
20.26
EV to Capital Employed
1.61
EV to Sales
8.38
PEG Ratio
NA
Dividend Yield
NA
ROCE (Latest)
4.15%
ROE (Latest)
7.99%
Loading Valuation Snapshot...
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Bullish
Mildly Bullish
RSI
No Signal
No Signal
Bollinger Bands
Mildly Bullish
Bullish
Moving Averages
Bullish (Daily)
KST
Bullish
Bearish
Dow Theory
No Trend
Mildly Bullish
OBV
Bullish
Bullish
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend3What is working for the Company
DEBT-EQUITY RATIO(HY)
Lowest at 0.04 times
DEBTORS TURNOVER RATIO(HY)
Highest at 8.73 times
-17What is not working for the Company
PAT(Latest six months)
At Rs 16.05 cr has Grown at -83.01%
NET SALES(9M)
At Rs 184.50 cr has Grown at -35.20%
ROCE(HY)
Lowest at 3.42%
CASH AND CASH EQUIVALENTS(HY)
Lowest at Rs 54.57 cr
NON-OPERATING INCOME(Q)
is 74.36 % of Profit Before Tax (PBT
Loading Valuation Snapshot...
Here's what is working for Hind.Oil Explor.
Debt-Equity Ratio - Half Yearly
Lowest at 0.04 times and Fallen
each half year in the last five half yearly periodsMOJO Watch
The company has been reducing its borrowing as compared to equity capital
Debt-Equity Ratio
Debtors Turnover Ratio- Half Yearly
Highest at 8.73 times
in the last five half yearly periodsMOJO Watch
Company has been able to settle its Debtors faster
Debtors Turnover Ratio
Here's what is not working for Hind.Oil Explor.
Profit After Tax (PAT) - Latest six months
At Rs 16.05 cr has Grown at -83.01%
Year on Year (YoY)MOJO Watch
Near term PAT trend is very negative
PAT (Rs Cr)
Net Sales - Nine Monthly
At Rs 184.50 cr has Grown at -35.20%
Year on Year (YoY)MOJO Watch
Near term sales trend is negative
Net Sales (Rs Cr)
Non Operating Income - Quarterly
is 74.36 % of Profit Before Tax (PBT)
MOJO Watch
The company's income from non business activities is high; which is not a sustainable business model
Non Operating Income to PBT
Cash and Cash Equivalents - Half Yearly
Lowest at Rs 54.57 cr
in the last six half yearly periodsMOJO Watch
Short Term liquidity is deteriorating
Cash and Cash Equivalents
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