Here's What Analysts Are Forecasting For Hindustan Petroleum Corporation Limited (NSE:HINDPETRO) After Its Second-Quarter Results
Hindustan Petroleum Corporation Limited (NSE:HINDPETRO) shareholders are probably feeling a little disappointed, since its shares fell 2.2% to ₹338 in the week after its latest quarterly results. Revenues came in 3.1% below expectations, at ₹1.3t. Statutory earnings per share were relatively better off, with a per-share profit of ₹84.81 being roughly in line with analyst estimates. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Hindustan Petroleum after the latest results.
Following the latest results, Hindustan Petroleum's 17 analysts are now forecasting revenues of ₹5.38t in 2027. This would be a reasonable 7.0% improvement in revenue compared to the last 12 months. Earnings are expected to tip over into lossmaking territory, with the analysts forecasting statutory losses of -₹16.65 per share in 2027. Yet prior to the latest earnings, the analysts had been anticipated revenues of ₹5.46t and earnings per share (EPS) of ₹8.34 in 2027. While the analysts have made no real change to their revenue estimates, we can see that the consensus is now modelling a loss next year - a clear dip in sentiment compared to the previous outlook of a profit.
Check out our latest analysis for Hindustan Petroleum
The consensus price target held steady at ₹395, seemingly implying that the higher forecast losses are not expected to have a long term impact on the company's valuation. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. The most optimistic Hindustan Petroleum analyst has a price target of ₹660 per share, while the most pessimistic values it at ₹290. This is a fairly broad spread of estimates, suggesting that analysts are forecasting a wide range of possible outcomes for the business.
Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. It's clear from the latest estimates that Hindustan Petroleum's rate of growth is expected to accelerate meaningfully, with the forecast 15% annualised revenue growth to the end of 2027 noticeably faster than its historical growth of 5.5% p.a. over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 5.0% per year. Factoring in the forecast acceleration in revenue, it's pretty clear that Hindustan Petroleum is expected to grow much faster than its industry.
The Bottom Line
The most important thing to take away is that the analysts are expecting Hindustan Petroleum to become unprofitable next year. Happily, there were no major changes to revenue forecasts, with the business still expected to grow faster than the wider industry. The consensus price target held steady at ₹395, with the latest estimates not enough to have an impact on their price targets.
With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have estimates - from multiple Hindustan Petroleum analysts - going out to 2029, and you can see them free on our platform here.
Even so, be aware that Hindustan Petroleum is showing 4 warning signs in our investment analysis , and 2 of those make us uncomfortable...
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