Hindustan Oil Exploration Company Ltd (HINDOILEXP) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

Deep Industries

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Panama Petrochem

Dolphin Offshore

Hind.Oil Explor.

Prabha Energy

Why is Hindustan Oil Exploration Company Ltd ?

Poor long term growth as Operating profit has grown by an annual rate -19.86% of over the last 5 years

The company has declared Negative results for the last 4 consecutive quarters

NET SALES(Q) At Rs 75.38 cr has Fallen at -48.3% (vs previous 4Q average)
PBT LESS OI(Q) At Rs 3.13 cr has Fallen at -67.3% (vs previous 4Q average)
PAT(Q) At Rs 8.28 cr has Fallen at -69.7% (vs previous 4Q average)

With ROE of 8, it has a Very Expensive valuation with a 1.2 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 -32.80%, its profits have fallen by -46.7%

Falling Participation by Institutional Investors

Institutional investors have decreased their stake by -0.71% over the previous quarter and collectively hold 1.5% of the company
These investors have better capability and resources to analyse fundamentals of companies than most retail investors

Below par performance in long term as well as near term

Along with generating -32.80% returns in the last 1 year, the stock has also underperformed BSE500 in the last 3 years, 1 year and 3 months

Real-Time Research Report

Verdict Report

How much should you sell?

All quantity irrespective of whether you are making profits or losses

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Oil)

When to re-enter? - We will constantly monitor the company and review our call based on new data

Is Hind.Oil Explor. for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

Hind.Oil Explor.

-32.58%

-0.86

37.76%

Sensex

-5.59%

-0.53

12.81%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

34.02%

EBIT Growth (5y)

-19.86%

EBIT to Interest (avg)

5.63

Debt to EBITDA (avg)

2.03

Net Debt to Equity (avg)

Sales to Capital Employed (avg)

0.33

Tax Ratio

Tax Ratio is Negative%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

1.50%

ROCE (avg)

10.89%

ROE (avg)

11.84%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

1.18

EV to EBIT

160.60

EV to EBITDA

18.54

EV to Capital Employed

1.18

EV to Sales

3.15

PEG Ratio

Dividend Yield

ROCE (Latest)

4.15%

ROE (Latest)

7.99%

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Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Dow Theory

No Trend

OBV

No Trend

Bullish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

11What is working for the Company

NET SALES(Latest six months)

Higher at Rs 390.39 cr

DEBT-EQUITY RATIO(HY)

Lowest at 0.06 times

-22What is not working for the Company

NET SALES(Q)

At Rs 75.38 cr has Fallen at -48.3% (vs previous 4Q average

PBT LESS OI(Q)

At Rs 3.13 cr has Fallen at -67.3% (vs previous 4Q average

PAT(Q)

At Rs 8.28 cr has Fallen at -69.7% (vs previous 4Q average

ROCE(HY)

Lowest at 8.50%

DEBTORS TURNOVER RATIO(HY)

Lowest at 1.98 times

NON-OPERATING INCOME(Q)

is 54.37 % of Profit Before Tax (PBT

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Here's what is working for Hind.Oil Explor.

Debt-Equity Ratio - Half Yearly

Lowest at 0.06 times and Fallen

each half year in the last five half yearly periods

MOJO Watch

The company has been reducing its borrowing as compared to equity capital

Debt-Equity Ratio

Here's what is not working for Hind.Oil Explor.

Net Sales - Quarterly

At Rs 75.38 cr has Fallen at -48.3% (vs previous 4Q average)

over average Net Sales of the previous four quarters of Rs 145.89 Cr

MOJO Watch

Near term sales trend is very negative

Net Sales (Rs Cr)

Profit Before Tax less Other Income (PBT) - Quarterly

At Rs 3.13 cr has Fallen at -67.3% (vs previous 4Q average)

over average PBT of the previous four quarters of Rs 9.56 Cr

MOJO Watch

Near term PBT trend is very negative

PBT less Other Income (Rs Cr)

Profit After Tax (PAT) - Quarterly

At Rs 8.28 cr has Fallen at -69.7% (vs previous 4Q average)

over average PAT of the previous four quarters of Rs 27.32 Cr

MOJO Watch

Near term PAT trend is very negative

PAT (Rs Cr)

Non Operating Income - Quarterly

is 54.37 % 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

Debtors Turnover Ratio- Half Yearly

Lowest at 1.98 times

in the last five half yearly periods

MOJO Watch

Company's pace of settling its Debtors has slowed

Debtors Turnover Ratio