Fundamental Analysis of PETROLEUM Sector

8/15/2019 Fundamental Analysis of PETROLEUM Sector

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Fundamental Analysis

of petroleum Sector.

By- mayank bhatt

Index•

Acknowledgement.• Why Fundamental Analysis

• Steps in!ol!ed in Fundamental Analysis.

• "uantitati!e # "ualitati!e $echni%ues.

• &b'ecti!es of the pro'ect.

• A!iation Industry in India-An o!er!iew.

• $op (own Analysis )*I+,.


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• Financial Analysis.

rice to *arnings atio.

ro'ected *arning /rowth.

rice to Sales.

rice to Book.

(i!idend ayout ratio.

(i!idend 0ield.

Book 1alue.

2i%uidity3$urno!er31aluation atio.

• "ualitati!e Analysis.

• +onclusions.

• Stones left 4nturned.

• Biblography.


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Acknoledgement.


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Objective-

PRIMARY OBJECTIVE.

$o understand the attitude of in!estors towards secondary market of securities.

SECONDARY OBJECTIVE.

• $o find out where people in!ests there money.

• $o know the sa!ing pattern of the people.

• $o know the awareness and knowledge of people towards secondary market.

PERIOD OF STUDY

$he study was conducted for 56 days from 7-8-9: to 9;-s una!ailability.

)7, $ime pressure and fatigue on the part of respondents and inter!iewer.

):, +ourtesy bias.


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Fun!"ent!# An!#$%i%

Fundamental Analysis is a stock !aluation techni%ue which looks into the ec&n&"ic #

'in!nci!# position of the company to predict its growth in a certain period. It takes into

account the financial information # the non-financial information such as the growth indemand? industry comparisons? go!ernment policies etc.

$he outcome of a fundamental analysis is a !alue? or range of !alues known as the int(in%ic

v!#ue. $o a fundamental in!estor the stock prices tend to re!ert towards its intrinsic !alue.

Fundamental Analysis gi!es answers to the %uestions like-

• Is the company>s re!enue growing

• Is it actually making a profit

• Is it in a strong-enough position to beat out its competitors in the future

• Is it able to repay its debts

• Is management trying to @cook the books@

Nee F&( Fun!"ent!# An!#$%i%-

E''ective M!()et *$+&t,e%i% *F states that it is impossible for an in!estor to beat themarket”, because the stocks are always bought # sold at a fair price in consistency with theinformation a!ailable in the market.

As such? it should be impossible to outperform the o!erall market through expert stockselection or market timing and that the only way an in!estor can possibly obtain higherreturns is by purchasing riskier in!estments

In other words *F says that e!ery information in the stock market? be it the earlier performance of the company? or the current economic policies which would be responsible

for further growth of the company are all in the public domain? so to reap out profit from theinformation which is a!ailable to all is impossible. If the in!estor wishes to make fortune instock market? he has to in!est in more risky in!estments? # that>s the only way into it.

A(u"ent% !!in%t *$+&t,e%i%- *ffecti!e arket Cypothesis might be one of the cornerstone towards finance? but it has been pro!en in the last few decades that the markets arereasonably efficient but beating them is %uite possible. $he beha!ioural scientist attributesthis towards the combination of financial markets and cogitati!e biases such aso!erconfidence? o!erreaction? representati!e biases? information bias and other biases. The market often appears to be driven by buyers operating on irrational exuberance, who

take little notice of underlying value.


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Sudden market crashes are mysterious from the perspecti!e of efficient markets and throwmarket efficiency to the winds. &ther examples are of in!estors? who ha!e consistently beatenthe market o!er long periods of time? which by definition should not be probable according tothe *C.

Fun!"ent!# An!#$%i%/ &e% it 0&()1

ecent years ha!e witnessed a new wa!e of researchers who ha!e pro!ided thought pro!oking? theoretical arguments and pro!ided supporting empirical e!idence to show thatsecurity prices could de!iate from their e%uilibrium !alues due to psychological factors? fads?and noise trading. $hat>s where in!estors through fundamental analysis and a soundin!estment ob'ecti!e can achie!e excess returns and beat the market.

Ste+% invve in Fun!"ent!# An!#$%i%-

Fundamental analysis consists of a systematic series of steps to examine the in!estmenten!ironment of a company and then identify opportunities. Some of these areD

E acroeconomic analysis - which in!ol!es analysing capital flows? interest rate cycles?currencies? commodities? indices etc.

E Industry analysis - which in!ol!es the analysis of industry and the companies that are a partof the sector

E Situational analysis of a company

E Financial analysis of the company


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E 1aluation

Tec,ni2ue% &' Fun!"ent!# An!#$%i%-

Fundamental Analysis can include e!erything related to the economic wellbeingof the company. &b!ious items include things like re!enue and profit? butfundamentals also include e!erything from a company>s market share to the

%uality of its management.

$he two techni%ues used to e!aluate a company used in this pro'ect are

3u!ntit!tive Tec,ni2ue%-$hese techni%ues deal with the more numerical ormeasurable characteristics of the business. $hese may include the profit earned?total re!enue? and other %ualitati!e data from financial documents.

3u!#it!tive Tec,ni2ue%- these techni%ues refer is to the character or %uality of

the company. $he intangible things like brand name? market share? %ualificationof board of executi!es.


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Objective% &' t,e %tu$-

• $o analyGe the present trends in the petroleum industry.

• $o predict the future of petroleum Industry for coming fi!e

years.

• $o select profitable companies? from a long term in!estor>s perspecti!e.


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E4ecutive Su""!($

$his pro'ect has been %uite a learning cur!e in my pursuit for

knowledge. It has made me more familiar with the practical world ofFinance? which as it turns out is much more complicated? and thusmuch more interesting.

$he Fundamental analysis is an effecti!e tool of !aluation of anysector? as it uses all the information from multiple en!ironments tocome to a precise decision.

In this I pro'ect I ha!e tried to touch !arious factors that affect theetroleum industry. $he petroleum industry is particularly susceptibleto external economic factors because it affects and depends on asubstantial number of industries.Re%e!(c, "et,&&$

esearch methodology is a way to systematically sol!e the research problem. $he research methodology using for find out the solution ofthe research problem is analytical research methodology and someextend descripti!e research methodology Secondary (ata $hesources of secondary data for sol!e the problems areD-+ompany Annual eport

A+* e%uity database

Internet-websites

Pe(i& &' %tu$

$he period of the study is 6 years i.e. )7;;


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• *arnings per Share *S

• rice to *arnings atio 3*

• ro'ected *arning /rowth */

•rice to Sales 3S

• rice to Book 3B

• (i!idend ayout atio

• (i!idend 0ield

• Book 1alue atio Analysis

• 2i%uid ratio :6

• $urno!er ratio 1aluation ratio

Tec,ni2ue%

$he techni%ue used in the analysis of the company is excel sheets?

graphs and tables of financial statement for example balance sheet? profit loss a3c? cash flow statement? di!idend per share? ratio analysis?!aluation ratio etc.


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F!ct&(% !''ectin +et(eu" inu%t($ in ini!

#1: OPEC (The Organization of Petroleum Exporting Countries)

OPEC, a consortium of 13 countries: Algeria, Angola, Ecuador, Indonesia, Iran, Iraq, Kuwait, Liba,

!igeria, "atar, #audi Arabia, t$e %nited Arab Emirates and &ene'uela, is t$e single largest entit im(acting

t$e world)s oil su((lies * OPEC is res(onsible for +- of t$e world)s oil (roduction, and sets (olicies among

member countries to meet global consum(tion* OPEC can affect t$e (rice of crude oil, b increasing

or reducing production among member countries* .$e /0 and / increase in oil (rices was due to

reductions in OPEC (roduction allocations in /2*

#2: uppl! and "emand

lobal oil in4entories balance su((l and demand* If (roduction e5ceeds demand, e5cess su((lies can be

stored* 6$en consum(tion e5ceeds demand, in4entories can be ta((ed to meet t$e incremental demand,

and t$e relations$i( between oil (rices and oil in4entories allows for corrections in eit$er direction* !on7

OPEC su((liers (roduce 2- of t$e world)s oil, and alt$oug$ t$e are 8- larger t$an OPEC, t$e don)t

$a4e sufficient reser4es to be able to control (rice and can onl res(ond to mar9et fluctuations* OPEC,

$owe4er can directl influence mar9et (ricing, es(eciall w$en t$e su((l of oil (roduced b non7OPEC

nations decreases* : $estricti%e &egislation

As t$e maorit of t$e world)s oil reser4es and (roduction are controlled b go4ernment7run com(anies, t$eglobal oil mar9et is $ea4il (olitici'ed and its functioning is far from t$at of a com(etiti4e mar9et* Energ

(olicies and ta5es in oil7ric$ countries also affect t$e (rice of oil* If a go4ernment bans oil e5(loration in a

(lace wit$ (ro4en reser4es, suc$ as t$e ulf of ;e5ico, t$en commodit mar9ets mar9 t$is as a see image below?* Ot$er factors t$at

affect t$e (rice of gasoline include local retail com(etition, (ro5imit to gasoline su((liers, and

en4ironmental regulations t$at can require s(eciall formulated gasoline*

#': Political nrest

If an oil7ric$ area becomes (oliticall unstable, su((lier mar9ets react b bidding u( t$e (rice of oil so t$at

su((lies are still a4ailable to t$e $ig$est bidder* In t$is instance, onl t$e (erce(tion of a s$ortage in

su((l can increase (rices, e4en w$ile (roduction le4els remains constant*

#: Production

.$e location of reser4es, t$e amount and (ro(erties of oil found, t$e geological formation in w$ic$ t$e oil is

found, and t$e costs of e5traction are all determined b ($sical factors* As oil is a nonrenewable natural

resource, ($sical factors significantl affect t$e cost of su((ling oil from a (articular reser4e* In addition,

substantial in4estment is required to continuousl disco4er new reser4oirs and to de4elo( t$em*

http://www.opec.org/opec_web/en/about_us/23.htmhttp://www.opec.org/opec_web/en/about_us/23.htm


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#*: +inancial ,ar-ets

Oil bro9ers matc$ buers and sellers of crude oil, and trade contracts for future deli4er of oil, 9nown as

$urricanes, tornadoes, t$understorms? can ($sicall affect (roduction

facilities and infrastructure disru(ting t$e su((l of oil and induce (ricing s(i9es*

#0: peculati%e u!ing

#(eculati4e buing creates a 4aring cost for oil based (roducts as s(eculators bu and sell futures contracts

on t$e o(en mar9et* Oil s(eculation also leads in4estors to (urc$ase more contracts w$en negati4e tensions

enter t$e oil mar9et* In /, it was t$oug$t t$at s(eculators were bidding u( oil (rices and creating an

unsustainable (rice le4el >u( to @1+barrel?* B late /, (rices fell to @3barrel because t$e demand

was not (resent to su((ort t$e inflated (rice le4el*

#: Exchange 3alue of the "ollar

Oil is traded and sold internationall in %# dollars* Dollar de(reciation generall tends to increase oil

demand and raise t$e (rice of oil* Con4ersel t$e strengt$ening of t$e dollar reduces real income in

consumer countries, decreasing t$e demand for oil and lowering (rices*

#14: 5on6OEC" "emand

Oil consum(tion in de4elo(ing countries t$at are not (art of t$e Organi'ation of Economic Coo(eration

and De4elo(ment >OECD? $as risen s$ar(l in recent ears* 6$ile oil consum(tion in t$e OECD countries

declined between / and /1, non7OECD oil consum(tion $as increased more t$an + (ercent* C$ina,

India, and #audi Arabia $a4e $ad t$e largest growt$ in oil consum(tion among non7OECD countries during

t$is (eriod*

http://www.iie.com/publications/pb/pb09-19.pdfhttp://www.oecd.org/pages/0,3417,en_36734052_36761863_1_1_1_1_1,00.htmlhttp://www.oecd.org/pages/0,3417,en_36734052_36761863_1_1_1_1_1,00.htmlhttp://www.iie.com/publications/pb/pb09-19.pdfhttp://www.oecd.org/pages/0,3417,en_36734052_36761863_1_1_1_1_1,00.htmlhttp://www.oecd.org/pages/0,3417,en_36734052_36761863_1_1_1_1_1,00.html


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$eform 7oost to pu7lic sector oil companies

ounting pressure on the fiscal front prompted the go!ernment to announce se!eral reformsin the petroleum sector last year. $hese measures will ha!e considerable impact on thefortunes of public sector oil companies.

ost importantly? oil marketing companies )&+s, ha!e been permitted to raise the price ofdiesel e!ery month and gradually link it to international prices.

$he go!ernment has also deregulated bulk diesel prices )which constituted about 9< per centof the o!erall diesel consumption during April-(ecember? 7;97,. $he supply of subsidised


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2/ cylinders has also been capped at nine per household annually. Further? a scheme todirectly transfer cash subsidies to domestic 2/ consumers is being implemented so as toeliminate duplicate connections.

$hese policy initiati!es will reduce under-reco!eries? which? in-turn? will impro!e

go!ernment finances. oreo!er? these measures will impro!e the profitability of upstream public sector oil companies as they ha!e to share ::-5; per cent of the under-reco!ery burden. $he pressure on cash flows and working capital of &+s will come down as well? asdelays in the release of the go!ernment>s share of under-reco!ery burden will be alle!iated.

IA+$ &H +&HS4$I&H A$$*H

Cigh diesel subsidies led to a significant increase in sales of diesel cars. $he proportion ofdiesel car sales in the o!erall car sales rose to around 66 per cent in 7;97-9: from :7 per centin 7;;-;8.

As the gap between diesel and petrol prices narrows? the proportion of diesel car sales will

fall. In the past as well? whene!er the domestic prices of indi!idual petroleum products wereraised or deregulated? the demand for the product was affected.

For example? after being deregulated in June? 7;9;? petrol prices ha!e risen by about :6 percent till date. +onse%uently? the growth in demand for the fuel shrunk to a +A/ )compoundannual growth rate, of 6.6 per cent o!er the last two years !is-a-!is a healthy growth rate of9;.5 per cent +A/ o!er 7;;6-; to 7;9;-99.

Similarly? the a!erage growth in demand for diesel )which accounted for 56 per cent of theo!erall fuel consumption in 7;97-9:, fell to :.8 per cent during &ctober-February? 7;97-9:?from 9;.6 per cent in the pre!ious six months.

$his sharp decline was largely due to increase in diesel prices in September? 7;97? )s. alitre,? gradual monthly price hikes from January? 7;9:? and deregulation of bulk diesel sales.

In fact? diesel sales declined by 7 per cent year-on-year in February? 7;9:? a first in the lastfi!e years. 2ower diesel sales also pulled down o!erall demand for petroleum products by 9.6

per cent in February. Although? the fall in diesel prices can be? to an extent? attributed to theo!erall slowdown in the domestic economy? a large part of it is because of policy reforms andthe subse%uent increase in prices.

4H(*-*+&1*I*S

A sharp rise in crude oil prices? a steep depreciation of the rupee !is-a-!is the dollar? and thelack of corresponding policy actions ha!e pushed up under-reco!eries o!er the last two years.

$he &+s recorded the highest-e!er under-reco!eries of s.9.:K lakh crorein 7;99-97? andha!e already reported under-reco!eries of s.9.76 lakh crore during April-(ecember? 7;97-9:. the &+s are expected to end the fiscal with under-reco!eries at s.9.6; lakh crore tos. 9.; lakh crore. In the absence of reforms and policy actions? the under-reco!ery in thesecond half of 7;97-9: would ha!e been higher by s.:;?;;;-5;?;;; crore.

In January? 7;9:? before the go!ernment allowed &+s to periodically make small re!isionsin diesel prices? the under-reco!ery on diesel )which contributed more than ; per cent of thetotal under-reco!eries in 7;99-97, was as high as s.99 a litre.


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Cowe!er? subse%uent policy actions and fall in crude oil prices ha!e lowered this figure tos..6; a litre in April. In 7;9:-95? +ISI2 esearch expects under-reco!eries to fall by 6;

per cent to s.8;?;;;- working capital re%uirements will decline.+onse%uently? their profitability and li%uidity position will impro!e? led by better cash flowsand a lower reliance on short-term loans to fund working capital re%uirements. +ISI2esearch expects their interest cost to decrease by s.7?6;;-:?;;; crore in 7;97-9:? which isaround 6; per cent of their net profits in 7;99-97.

$he profitability of upstream companies )&H/+? &il India and /AI2, will also impro!esignificantly as their share in the under-reco!ery burden will nearly hal!e to s.76?;;;-:6?;;; crore in 7;9:-95 from an estimated s.6;?;;;-;?;;; crore in 7;97-9:.

&!er the same period? the go!ernment>s share in under-reco!eries is likely to dip tos.:6?;;;-56?;;; crore from an estimated s.


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Histo!&

HP. was in#o!%o!ated in 1924 ate! t'e ta/eo+e! and $e!"e! o E!stw'ile Esso Standa!d and .*e India .i$ited *& t'e Esso

(isition o 8nde!ta/in"s in India) #t 1924 alte; Oil Reinin" (India).td- ORI. was ta/en o+e! *& o+t o India in 192

and $e!"ed wit' HP. in 192< *& t'e ORI.-HP. $al"a$ation O!de!, 192, ollowin" a %etition *& t'e ent!e o! P*li# Inte!est .iti"ation (PI.), t'e S%!e$e o!t o India !est!ained t'e ent!al

"o+e!n$ent !o$ %!i+ati?in" Hindstan Pet!ole$ and B'a!at Pet!ole$ wit'ot t'e a%%!o+al o Pa!lia$ent s #onsel o! t'e

PI., Ra@inde! Sa#'a! and P!as'ant B's'an said t'at t'e onl& wa& to disin+est in t'e #o$%anies wold *e to !e%eal o! a$end

t'e #ts *& w'i#' t'e& we!e nationali?ed in t'e 1920s s a !eslt, t'e "o+e!n$ent wold need a $a@o!it& in *ot' 'oses to

%s' t'!o"' an& %!i+ati?ationA>

HP. 'as *een steadil& "!owin" o+e! t'e &ea!s T'e !einin" #a%a#it& steadil& in#!eased !o$ 55 $illion $et!i# tonnes in

1907 o $a!/et s'a!e in t'is se#to! T'e %o%la! *!ands o HP l*es a!e .aal 'oda, il#&, T'anda

Ra@a, =ool"a!d, Ra#e!4, et#

4 LP : HPS, T'e HP. *!and o .P is a %o%la! *!and a#!oss India o! do$esti# and indst!ial ses

5 A!iation Turbine "uel A2 it' $a@o! S3(i! Se!+i#e 3a#ilit&) %!esent in all $a@o! ai!%o!ts o India HP. is a /e&

%la&e! in t'is se#to! s%%l&in" T3 to $a@o! ai!lines It 'as an a##o$%lis'$ent o so!ts to s%%l& el to 8S i! 3o!#e

1

#itumen

2 "urnace Oil

http://indiankanoon.org/doc/1769128/http://indiankanoon.org/doc/1769128/http://www.hindustanpetroleum.com/Upload/En/UPdf/CORIL-AMALGAMATION-1978.pdfhttp://www.hindustanpetroleum.com/Upload/En/UPdf/KOSANGAS-ACQUISITION-ACT.pdfhttp://en.wikipedia.org/wiki/Centre_for_Public_Interest_Litigationhttp://en.wikipedia.org/wiki/Supreme_Court_of_Indiahttp://en.wikipedia.org/wiki/Bharat_Petroleumhttp://en.wikipedia.org/wiki/Rajinder_Sacharhttp://en.wikipedia.org/wiki/Prashant_Bhushanhttp://en.wikipedia.org/wiki/Hindustan_Petroleum#cite_note-3http://en.wikipedia.org/wiki/Petrolhttp://en.wikipedia.org/wiki/Petrolhttp://en.wikipedia.org/wiki/Diesel_fuelhttp://en.wikipedia.org/wiki/Diesel_fuelhttp://en.wikipedia.org/wiki/Lubricantshttp://www.hindustanpetroleum.com/En/UI/LubesHome.aspxhttp://var/www/apps/conversion/tmp/scratch_5/http:%2F%2Fhpmilcy.com%7Chp%2Fhttp://var/www/apps/conversion/tmp/scratch_5/http:%2F%2Fhpmilcy.com%7Chp%2Fhttp://var/www/apps/conversion/tmp/scratch_5/http:%2F%2Fhpmilcy.com%7Chp%2Fhttp://www.hpracer4.com/http://en.wikipedia.org/wiki/Liquified_petroleum_gashttp://en.wikipedia.org/wiki/Liquified_petroleum_gashttp://www.hpgas.com/http://en.wikipedia.org/wiki/Aviation_Fuelhttp://en.wikipedia.org/wiki/Hindustan_Petroleum#cite_note-7http://en.wikipedia.org/wiki/Hindustan_Petroleum#cite_note-7http://en.wikipedia.org/wiki/Hindustan_Petroleum#cite_note-7http://en.wikipedia.org/wiki/Bitumenhttp://en.wikipedia.org/wiki/Fuel_Oilhttp://indiankanoon.org/doc/1769128/http://indiankanoon.org/doc/1769128/http://www.hindustanpetroleum.com/Upload/En/UPdf/CORIL-AMALGAMATION-1978.pdfhttp://www.hindustanpetroleum.com/Upload/En/UPdf/KOSANGAS-ACQUISITION-ACT.pdfhttp://en.wikipedia.org/wiki/Centre_for_Public_Interest_Litigationhttp://en.wikipedia.org/wiki/Supreme_Court_of_Indiahttp://en.wikipedia.org/wiki/Bharat_Petroleumhttp://en.wikipedia.org/wiki/Rajinder_Sacharhttp://en.wikipedia.org/wiki/Prashant_Bhushanhttp://en.wikipedia.org/wiki/Hindustan_Petroleum#cite_note-3http://en.wikipedia.org/wiki/Petrolhttp://en.wikipedia.org/wiki/Diesel_fuelhttp://en.wikipedia.org/wiki/Lubricantshttp://www.hindustanpetroleum.com/En/UI/LubesHome.aspxhttp://www.hpracer4.com/http://en.wikipedia.org/wiki/Liquified_petroleum_gashttp://www.hpgas.com/http://en.wikipedia.org/wiki/Aviation_Fuelhttp://en.wikipedia.org/wiki/Hindustan_Petroleum#cite_note-7http://en.wikipedia.org/wiki/Bitumenhttp://en.wikipedia.org/wiki/Fuel_Oilhttp://var/www/apps/conversion/tmp/scratch_5/http:%2F%2Fhpmilcy.com%7Chp%2F


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Hindustan Petroleum Corporation Limited

T$pe P*li#

Traded as BSE: 500104, NSE: HINDPETRO

Industr$ Oil and as

"ounded 1924

Head%uarters $*ai, a'a!as't!a, India

&e$ people S Ro& 'od'!&

('ai!$an F D)

Products Oil, nat!al "as, %et!ole$,l*!i#ant, %et!o#'e$i#al

Re!enue

8SG >444 *illion (01)A1

Operatin' income

8SG 20 $illion (01) A1

Net income

8SG >5 $illion (01) A1

Total assets

8SG 1591 *illion (01) A1

Total e%uit$

8SG 4 *illion (01)A1

O(ner)s* o+e!n$ent o India

Emplo$ees 11, (01)A1

+ebsite www'indstan%et!ole$#o$

#alance s,eet

(Rs #!o!e)

http://en.wikipedia.org/wiki/Types_of_business_entityhttp://en.wikipedia.org/wiki/Public_companyhttp://en.wikipedia.org/wiki/Ticker_symbolhttp://en.wikipedia.org/wiki/Bombay_Stock_Exchangehttp://www.bseindia.com/bseplus/StockReach/AdvanceStockReach.aspx?scripcode=500104http://en.wikipedia.org/wiki/National_Stock_Exchange_of_Indiahttp://en.wikipedia.org/wiki/National_Stock_Exchange_of_Indiahttp://en.wikipedia.org/wiki/National_Stock_Exchange_of_Indiahttp://www.nseindia.com/marketinfo/companyinfo/companysearch.jsp?cons=HINDPETRO&section=7http://en.wikipedia.org/wiki/List_of_petroleum_companieshttp://en.wikipedia.org/wiki/Mumbaihttp://en.wikipedia.org/wiki/Maharashtrahttp://en.wikipedia.org/wiki/Maharashtrahttp://en.wikipedia.org/wiki/Maharashtrahttp://en.wikipedia.org/wiki/Indiahttp://en.wikipedia.org/wiki/Indiahttp://www.hindustanpetroleum.com/Upload/En/ContentImages/S_RoyChoudhury_zoom.jpghttp://en.wikipedia.org/wiki/Chairmanhttp://en.wikipedia.org/wiki/Managing_Directorhttp://en.wikipedia.org/wiki/Managing_Directorhttp://en.wikipedia.org/wiki/Oilhttp://en.wikipedia.org/wiki/Natural_gashttp://en.wikipedia.org/wiki/Natural_gashttp://en.wikipedia.org/wiki/Natural_gashttp://en.wikipedia.org/wiki/Petroleumhttp://en.wikipedia.org/wiki/Petroleumhttp://en.wikipedia.org/wiki/Petroleumhttp://en.wikipedia.org/wiki/Lubricanthttp://en.wikipedia.org/wiki/Petrochemicalhttp://en.wikipedia.org/wiki/Petrochemicalhttp://en.wikipedia.org/wiki/United_States_dollarhttp://en.wikipedia.org/wiki/United_States_dollarhttp://en.wikipedia.org/wiki/United_States_dollarhttp://en.wikipedia.org/wiki/Hindustan_Petroleum#cite_note-10K-1http://en.wikipedia.org/wiki/Earnings_before_interest_and_taxeshttp://en.wikipedia.org/wiki/Hindustan_Petroleum#cite_note-10K-1http://en.wikipedia.org/wiki/Net_incomehttp://en.wikipedia.org/wiki/Hindustan_Petroleum#cite_note-10K-1http://en.wikipedia.org/wiki/Assethttp://en.wikipedia.org/wiki/Hindustan_Petroleum#cite_note-10K-1http://en.wikipedia.org/wiki/Equity_(finance)http://en.wikipedia.org/wiki/Hindustan_Petroleum#cite_note-10K-1http://en.wikipedia.org/wiki/Hindustan_Petroleum#cite_note-10K-1http://en.wikipedia.org/wiki/Government_of_Indiahttp://en.wikipedia.org/wiki/Hindustan_Petroleum#cite_note-10K-1http://en.wikipedia.org/wiki/Hindustan_Petroleum#cite_note-10K-1http://www.hindustanpetroleum.com/http://en.wikipedia.org/wiki/Types_of_business_entityhttp://en.wikipedia.org/wiki/Public_companyhttp://en.wikipedia.org/wiki/Ticker_symbolhttp://en.wikipedia.org/wiki/Bombay_Stock_Exchangehttp://www.bseindia.com/bseplus/StockReach/AdvanceStockReach.aspx?scripcode=500104http://en.wikipedia.org/wiki/National_Stock_Exchange_of_Indiahttp://www.nseindia.com/marketinfo/companyinfo/companysearch.jsp?cons=HINDPETRO&section=7http://en.wikipedia.org/wiki/List_of_petroleum_companieshttp://en.wikipedia.org/wiki/Mumbaihttp://en.wikipedia.org/wiki/Maharashtrahttp://en.wikipedia.org/wiki/Indiahttp://www.hindustanpetroleum.com/Upload/En/ContentImages/S_RoyChoudhury_zoom.jpghttp://en.wikipedia.org/wiki/Chairmanhttp://en.wikipedia.org/wiki/Managing_Directorhttp://en.wikipedia.org/wiki/Oilhttp://en.wikipedia.org/wiki/Natural_gashttp://en.wikipedia.org/wiki/Petroleumhttp://en.wikipedia.org/wiki/Lubricanthttp://en.wikipedia.org/wiki/Petrochemicalhttp://en.wikipedia.org/wiki/United_States_dollarhttp://en.wikipedia.org/wiki/Hindustan_Petroleum#cite_note-10K-1http://en.wikipedia.org/wiki/Earnings_before_interest_and_taxeshttp://en.wikipedia.org/wiki/Hindustan_Petroleum#cite_note-10K-1http://en.wikipedia.org/wiki/Net_incomehttp://en.wikipedia.org/wiki/Hindustan_Petroleum#cite_note-10K-1http://en.wikipedia.org/wiki/Assethttp://en.wikipedia.org/wiki/Hindustan_Petroleum#cite_note-10K-1http://en.wikipedia.org/wiki/Equity_(finance)http://en.wikipedia.org/wiki/Hindustan_Petroleum#cite_note-10K-1http://en.wikipedia.org/wiki/Government_of_Indiahttp://en.wikipedia.org/wiki/Hindustan_Petroleum#cite_note-10K-1http://www.hindustanpetroleum.com/


18/31

Mar - ./ Mar - .. Mar - .0 Mar - 01 Mar - 02

So!#es o nds

Owne!6s nd

Eit& s'a!e #a%ital >>901 >>901 >>901 >>901 >>901

S'a!e a%%li#ation $one& - - - - -

P!ee!en#e s'a!e #a%ital - - - - -

Rese!+es F s!%ls 1,251 1,029 11,191 10,4<

.oan nds

Se#!ed loans ,50 >,52< 1,>25>,4>,>9>< 9,49 4,9 11,00>


19/31


Boo/ +ale o noted in+est$ents ,9499< ,2909 1,0>9 105

a!/et +ale o oted in+est$ents 5,>>>>>595 4,04>1 >,992< >,40>44 ,> ,1>94 >,5

EPS (Rs) 2 9 4545 > 19<

Annual results in details

Mar - .4 Mar - ./ Mar - .. Mar - .0 Mar - 01

Ot'e! in#o$e 1,10> 1,0559 255 2,1> 40,>01 >2,2259 40,995

Powe! and el - - - - -

E$%lo&ee e;%enses ,555 1,510 ,0121 1,12> 1,1>219


20/31


E;#ise - - - - 2,050>

d$in and sellin" e;%enses - - - - -

Resea!#' and de+elo%$ent e;%enses - - - - -

E;%enses #a%italised - - - - -

Ot'e! e;%enses 1,>5, 1,4095 1,1440 9901 1,>01>2 5249<

E;t!a o!dina!& ite$ - -049 - >> >> >> >> >>

Eit& di+idend !ate - - - - -

""o non-%!o$ s'a!es (.a#s) 15551 15551 15551 15551 15551

""o non %!o$oto'oldin" (7) 4


21/31

Histo!&

In 19


22/31

Bharat Petroleum Corporation Limited

Type Public

Traded as BSE: 500547

NSE: BPCL

Industry Oil and gas

Headquarters Mumbai, Maharashtra, India

Key people M Singh

Chairman ! M"#

Products P$tr%l$um, natural gas, and %th$r &$tr%ch$micals

Revenue

'S( )*+45 billi%n 0-#.-/

Operating income 'S( 777 milli%n 0-#.-/

Net income 'S( *00 milli%n 0-#.-/

Total assets 'S( -4+47 billi%n 0-#.-/

Total equity 'S( )+-4 billi%n 0-#.-/

Oner!s" %1$rnm$nt %2 India

#mployees -4,-54 0-#.-/

$e%site 333+bharat&$tr%l$um+c%m

http://en.wikipedia.org/wiki/Types_of_business_entityhttp://en.wikipedia.org/wiki/Public_companyhttp://en.wikipedia.org/wiki/Ticker_symbolhttp://en.wikipedia.org/wiki/Bombay_Stock_Exchangehttp://www.bseindia.com/bseplus/StockReach/AdvanceStockReach.aspx?scripcode=500547http://en.wikipedia.org/wiki/National_Stock_Exchange_of_Indiahttp://www.nseindia.com/marketinfo/companyinfo/companysearch.jsp?cons=BPCL&section=7http://en.wikipedia.org/wiki/List_of_petroleum_companieshttp://en.wikipedia.org/wiki/Mumbaihttp://en.wikipedia.org/wiki/Maharashtrahttp://en.wikipedia.org/wiki/Indiahttp://en.wikipedia.org/wiki/Chairmanhttp://en.wikipedia.org/wiki/Managing_Directorhttp://en.wikipedia.org/wiki/Petrochemicalhttp://en.wikipedia.org/wiki/United_States_dollarhttp://en.wikipedia.org/wiki/Bharat_Petroleum#cite_note-10-K-1http://en.wikipedia.org/wiki/Earnings_before_interest_and_taxeshttp://en.wikipedia.org/wiki/Bharat_Petroleum#cite_note-10-K-1http://en.wikipedia.org/wiki/Net_incomehttp://en.wikipedia.org/wiki/Bharat_Petroleum#cite_note-10-K-1http://en.wikipedia.org/wiki/Assethttp://en.wikipedia.org/wiki/Bharat_Petroleum#cite_note-10-K-1http://en.wikipedia.org/wiki/Equity_(finance)http://en.wikipedia.org/wiki/Bharat_Petroleum#cite_note-10-K-1http://en.wikipedia.org/wiki/Government_of_Indiahttp://en.wikipedia.org/wiki/Bharat_Petroleum#cite_note-10-K-1http://www.bharatpetroleum.com/http://en.wikipedia.org/wiki/Types_of_business_entityhttp://en.wikipedia.org/wiki/Public_companyhttp://en.wikipedia.org/wiki/Ticker_symbolhttp://en.wikipedia.org/wiki/Bombay_Stock_Exchangehttp://www.bseindia.com/bseplus/StockReach/AdvanceStockReach.aspx?scripcode=500547http://en.wikipedia.org/wiki/National_Stock_Exchange_of_Indiahttp://www.nseindia.com/marketinfo/companyinfo/companysearch.jsp?cons=BPCL&section=7http://en.wikipedia.org/wiki/List_of_petroleum_companieshttp://en.wikipedia.org/wiki/Mumbaihttp://en.wikipedia.org/wiki/Maharashtrahttp://en.wikipedia.org/wiki/Indiahttp://en.wikipedia.org/wiki/Chairmanhttp://en.wikipedia.org/wiki/Managing_Directorhttp://en.wikipedia.org/wiki/Petrochemicalhttp://en.wikipedia.org/wiki/United_States_dollarhttp://en.wikipedia.org/wiki/Bharat_Petroleum#cite_note-10-K-1http://en.wikipedia.org/wiki/Earnings_before_interest_and_taxeshttp://en.wikipedia.org/wiki/Bharat_Petroleum#cite_note-10-K-1http://en.wikipedia.org/wiki/Net_incomehttp://en.wikipedia.org/wiki/Bharat_Petroleum#cite_note-10-K-1http://en.wikipedia.org/wiki/Assethttp://en.wikipedia.org/wiki/Bharat_Petroleum#cite_note-10-K-1http://en.wikipedia.org/wiki/Equity_(finance)http://en.wikipedia.org/wiki/Bharat_Petroleum#cite_note-10-K-1http://en.wikipedia.org/wiki/Government_of_Indiahttp://en.wikipedia.org/wiki/Bharat_Petroleum#cite_note-10-K-1http://www.bharatpetroleum.com/


23/31

Annual results in brie3 o3 b,arat petroleum

(Rs #!o!e)


Sales ,40,11525 ,11,9292 1,51,519 1,,>595,>>14<

O%e!atin" %!oit ,10,55 >2 42< 45> 0>5

Annual results in details


Ot'e! in#o$e 1, 1,2012< 1,241 1,4149

Sto#/ ad@st$ent -1,42129 -010 -,0505 ->,9


24/31


E;t!a o!dina!& ite$ - - - - -

P!io! &ea! ad@st$ents - - - - -

Eit& #a%ital 2>0< >154 >154 >154 >154

Eit& di+idend !ate - - - - -

""o non-%!o$ s'a!es (.a#s) >5


25/31

#alance s,eet o3 b,arat petroleum

(Rs #!o!e)


So!#es o nds

Owne!6s nd

Eit& s'a!e #a%ital >154 >154 >154 >154 >154

S'a!e a%%li#ation $one& - - - - -

P!ee!en#e s'a!e #a%ital - - - - -

Rese!+es F s!%ls 14,55> 1>,90< 1,2512 11,252 11,>15>0

.oan nds

Se#!ed loans 1011 4,0>>10 10,44>,10 ,2>01

8nse#!ed loans 1,0>>> 14,9>> 12,509,10>0 >>,0949 >5,>,995 ,99

8ses o nds

3i;ed assets

!oss *lo#/ >1,29> 9,>>4> 5,415 ,5>> 1,5009>

.ess : !e+alation !ese!+e - - - - -

.ess : a##$lated de%!e#iation 15,11441 1>,>>490 11,24>12 10,5554 9,5>


26/31


Net *lo#/ 1,1491 15,999>> 1>,9>5 11,9529 11,9


27/31

Ratios o3 #P

(Rs #!o!e)


Pe! s'a!e !atios

d@sted EPS (Rs) >> > 994 >24>

d@sted #as' EPS (Rs) 5 4>2

Re%o!ted #as' EPS (Rs) 545 >92

Net o%e!atin" in#o$e %e! s'a!e EPS (Rs) 5,0 4,120< >,>51 >,20< >,04119 194


28/31


.e+e!a"e !atios

.on" te!$ de*t C Eit& 014 0> 09> 0>0 0>>

Total de*tCeit& 14 1>5 120 125 19

Owne!s nd as 7 o total so!#e 414 45 >209 >4 4>2>

3i;ed assets t!no+e! !atio 1> 44 >51 442 514

.iidit& !atios

!!ent !atio 15 119 1> 11< 1<

!!ent !atio (in# st loans) 025 021 02 049 02>

i#/ !atio 021 050 02 0 01

In+ento!& t!no+e! !atio 1>95 102 1109 191 114

Pa&ot !atios

Di+idend %a&ot !atio (net %!oit) >4< >2> >25 >09 44 511 2< 15

3in #'a!"es #o+!atio (%ost ta;) 2< >91 >25 1


29/31


Bons #o$%onent in eit& #a%ital (7) 21 21 21 21 21

Re#i!nce Pet(eu" Li"ite

eliance etroleum 2imited )2,? a ukesh Ambani led eliance /roup company was set

up to harness an emerging !alue creation opportunity in the global refining sector by eliance

Industries? one of the IndiaNs largest pri!ate sector company with a significant presence across

the entire energy chain and a global leadership across key product segments. +urrently? 2

is subsidiary of I2.

2 was formed to set up a greenfield petroleum refinery and polypropylene plant in the

Special *conomic Oone )S*O, at Jamnagar in /u'arat. $his global siGed? highly complex

refinery is being located ad'acent to I2Ns existing refinery and petrochemicals complex?

which is amongst the largest and most efficient in the world? thus offering significant

synergies.

$he commissioning of the 2 refinery catapults eliance into the league of the largest

refiners globally? both in terms of complex refining capacity and earnings potential. With the

completion of the 2 refinery? Jamnagar has emerged as the Pefining Cub of the World>

with the largest refining complex with an aggregate refining capacity of 9.75 million barrels

of oil per day in any single location in the world.

$he state-of-the-art? globally competiti!e 2 refinery has been completed in : months

from concept to commissioning? which is a new benchmark for building a grass-root refinery

of this scale and complexity. $his refinery has been built with a significant capital cost

competiti!e ad!antage. $his record has been achie!ed in spite of the significant shortfall in

engineering and construction resources that has impacted most other refinery pro'ects

globally. 2 achie!ed the milestone by le!eraging the pro'ect management skills of the

eliance group together with world-class implementation partners like Bechtel? 4& and

Foster Wheeler amongst others.

$he eliance /roup? founded by (hirubhai C. Ambani )9K:7-7;;7,? is IndiaNs largest pri!ate

sector enterprise? with businesses in the energy and materials !alue chain. /roupNs annual

re!enues are in excess of L :5 billion. $he flagship company? eliance Industries 2imited? isa Fortune /lobal 6;; company and is the largest pri!ate sector company in India.


30/31

$he /roupNs acti!ities span exploration and production of oil and gas? petroleum refining and

marketing? petrochemicals )polyester? fibre intermediates? plastics and chemicals,? textiles

and retail.

eliance en'oys global leadership in its businesses? being the largest polyester yarn and fibre

producer in the world and among the top fi!e to ten producers in the world in ma'or

petrochemical products.

$he /roup exports products in excess of 4SL 7; billion to 9;< countries in the world. a'or

/roup +ompanies are eliance Industries 2imited )including main subsidiaries eliance

etroleum 2imited and eliance etail 2imited, and eliance Industrial Infrastructure

2imited.

&n arch 7? 7;;K the Boards of (irectors of eliance Industries 2imited )I2, and eliance

etroleum 2imited )2, unanimously appro!ed 2>s merger with I2? sub'ect tonecessary appro!als. $he exchange ratio recommended by both boards is 9 )one, share of I2

for e!ery 9 )sixteen, shares of 2. I2 will issue .K7 crore new shares? thereby increasing

its e%uity capital to s 9?5: crore.

&n April 9:? 7;;K? the shareholders and the creditors of eliance etroleum 2imited )2,

appro!ed the Scheme of Amalgamation of 2 with eliance Industries 2imited )I2,.

C&"+!n$ c&"+teti&(%

c&"+!n$ S!#e%5R%.Mi##i&n

6

Cu((entP(ice

C,!ne576

P8E R!ti& M!()etC!+.

5R%.Mi##i&n6

9:-;ee) *i,8L&0

eliance Industries :;7K8;.;;


31/31

C+2 98K697:.; 7;9.; 9.59 8.55 8:9K.9; :

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Fundamental Analysis of PETROLEUM Sector

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