HPCL owns the country's largest Lube Refinery with a capacity of 335,000 Metric Tonnes which amounts to 40% of the national capacity of Lube Oil production.

1. YOUR MINTVISORY Call us at +91-731-6642300 10 NOVEMBER 2014
STOCK INFORMATION
STOCK PRICE
572.30
TARGET PRICE
580-595
SECTOR
REFINERIES
SYMBOL (AT NSE)
HINDPETRO
ISIN
INE094A01015
FACE VALUE (IN RS.)
10.00
BSE CODE
500104
STOCK FUNDAMENTALS
MARKET CAP
19,379.64
BOOK VALUE
443.31
EPS - (TTM) (IN RS. CR.)
95.69
P/E
5.98
INDUSTRY P/E
14.38
HINDUSTAN PETROLEUM CORPORATION LIMITED
SPECIAL REPORT
SHAREHOLDING PATTERN
RESULTS (Quarterly )(Rs mn)
COMPANY INFORMATION
Jun’14
Mar’14
Dec’13
Sep’13
Jun’13
Sales
59,215.78
64,192.29
55,454.99
51,860.1
51,7638
Operating profit
589.84
5,938.48
-930.71
1,014.21
-687.88
Interest
589.84
5,938.48
-930.71
1,014.21
-687.88
Gross profit
658.18
6,070.30
-1,177.36
861.49
-950.48
EPS (Rs)
1.36
136.11
-51.20
9.42
-43.13
Hindustan Petroleum Corporation Limited a Government of India undertaking and a Fortune 500 company, is a major inte- grated oil refining and marketing company in India. It is a Mega Public Sector Undertaking (PSU) with Navaratna status.
HPCL accounts for about 20% of the market share in India among the PSUs. The Company operates with 2 refineries pro- ducing a wide variety of petroleum fuels & specialties, one at Mumbai (West Coast) having a capacity of 6.5 Million Metric Tonnes Per Annum (MMTPA) and the other in Vishakapatnam (East Coast) with a capacity of 8.3 MMTPA. HPCL also holds an equity stake of 16.95% in Mangalore Refinery & Petrochemi- cals Limited (MRPL), a state-of-the-art refinery at Mangalore with a capacity of 9 MMTPA. In addition, HPCL, in collabora- tion with M/s Mittal Energy Investment Pte.Ltd. has set up a 9 MMTPA refinery at Bathinda, in the state of Punjab, as a Joint venture.
HPCL owns the country's largest Lube Refinery with a capacity of 335,000 Metric Tonnes which amounts to 40% of the na- tional capacity of Lube Oil production. Presently HPCL pro- duces over 300+ grades of Lubes, Specialities and Greases.
Diesel price deregulation…bold move in right time
The government’s move to announce a cut in diesel prices by Rs 3.4 per litre and deregulate diesel prices comes at the right time when there has been a sharp decline in crude oil prices. Diesel prices will be market determined at both retail and re- finery gate level for all consumers. The move to deregulate diesel prices will lead to a decline in crude oil gross under- recoveries, with only kerosene and LPG prices under the regu- latory regime. The gross under-recoveries are now expected to decline from Rs 139869 crore in FY14 to Rs 83,326.5 crore in FY16E. ONGC, Oil India and PSU downstream companies would be the key beneficiaries and may see a reduction in their net subsidy burden, going forward.
We expect more reforms from the government on the subsidy sharing mechanism, wherein lower subsidy burden needs to be set for upstream and downstream companies. We expect the decision on the subsidy sharing mechanism to come sooner than later, given the strong government and political sensitivity of the decision being the least. We expect net oil realisation for ONGC at $44.1/bbl, $45.5/bbl and $57.5/bbl for FY15E, FY16E and FY17E and for Oil India at $50.9/bbl, $53/bbl and $65/bbl for FY15E, FY16E and FY17E, respectively. OMCs also stand to benefit if they are able to increase their diesel marketing margins by Rs 0.5 per litre.
INVESTMENT RATIONALE

2. YOUR MINTVISORY Call us at +91-731-6642300 10 NOVEMBER 2014
TECHNICAL VIEW
Our Other Recommendation for Next Week
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SYMBOL
VALUE
ACTION
RSI(14)
71.036
BUY
STOCH(9,6)
69.105
BUY
STOCHRSI(14)
40.701
SELL
MACD(12,26)
-15.830
SELL
ADX(14)
48.510
BUY
WILLIAMS %R
-26.641
BUY
CCI(14)
102.6628
BUY
ATR(14)
5.9643
HIGH VOLATILITY
HIGH/LOWS(14)
11.2679
BUY
ULTIMATE OSCILLATOR
58.182
BUY
ROC
3.864
BUY
BULL/BEAR POWER()13
21.3820
BUY
BUY: 09 SELL:02 NEUTRAL: 3
SUMMARY : STRONG BUY
SCRIP
ACTION
ENTRY
SL
TGT
TIME FRAME
CMP
TATA COMM
BUY
425-430
417
439-445
ONE WEEK
430.35
LUPIN
BUY
1400-1420
1375
1450-1480
ONE WEEK
1429.85
BHEL
SELL
246-250
259
242-234
ONE WEEK
246.95
UCO BANK
SELL
85-87
90
82-80
ONE WEEK
83.55
SUNPHARMA
BUY
895.75
880-890
858
915-935
ONE WEEK
HIND PETRO is looking strong on charts. We advise to buy around 550-560 with stoploss of 530 for the targets of 580- 595 levels. RSI is also showing upside momentum in it on weekly charts.
Performance of Previous Week
SCRIP
LOT
ACTION
ENTRY
SL
TGT
P&L
REMARK
CLOSE / HIGH
CANARA BANK
1000
BUY
400-408
385
419-440
18000.00
NEAR TGT
406.25 / 418.40
REL INFRA
500
BUY
620-640
600
655-675
7500.00
FIRST TGT HIT
633.50 / 660.60
TATA STEEL
500
BUY
490-500
475
510-525
-7500.00
SL HIT
474.15 / 497.40
BHARAT FORGE
1000
BUY
805-815
790
830-850
40000.00
BOTH TGT HIT
841.45 / 857.00
L&T
250
BUY
1640-1670
1600
1695-1740
10000.00
FIRST TGT HIT
1659.05 / 1696.85
HINDALCO
2000
BUY
162-165
156
170-175
-12000.00
SL HIT
157.10 / 166.95
NET PROFIT
56000.00