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Hindustan PetroleumBOM:500104 -0.89%79 Gross Margin % is 12.19% as of Mar. 2026, which is 47% above its 10-year median of 8.28. GuruFocus rates BOM:500104 with a GF Score™ of 79/100 and a GF Value™ of ₹388.34 (Fairly Valued). The stock has 4 warning signs investors should review. Among 869 Oil & Gas companies, Hindustan Petroleum ranks worse than 76.75% on this metric.
Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.
Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %
1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key
Hindustan Petroleum had a gross margin of 12.19% for the quarter that ended in Mar. 2026 => No sustainable competitive advantage
Be Aware
If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.
Hindustan Petroleum Gross Margin % Related Terms
Hindustan Petroleum Gross Margin % Historical Data
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The historical data trend for Hindustan Petroleum's Gross Margin % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
BOM:500104 vs VLO, MPC, PSX: Gross Margin % Comparison
For the Oil & Gas Refining & Marketing subindustry, Hindustan Petroleum's Gross Margin %, along with its competitors' market caps and Gross Margin % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Hindustan Petroleum Gross Margin % vs Oil & Gas Industry
For the Oil & Gas industry and Energy sector, Hindustan Petroleum's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Hindustan Petroleum's Gross Margin % falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.
Hindustan Petroleum (BOM:500104) has a Gross Margin % of 12.19% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Hindustan Petroleum and its competitors. This is 47% above median its historical median of 8.28. Over the past decade, Hindustan Petroleum's Gross Margin % has ranged from 0.30 to 11.76. According to the industry distribution chart, Hindustan Petroleum ranks #667 out of 869 companies in the Oil & Gas industry, placing it in the top 76.8%.
Is Hindustan Petroleum's Gross Margin % too high?
Hindustan Petroleum's current Gross Margin % of 12.19% is 47% above median its 10-year median of 8.28. Over the past 10 years, this metric has ranged from a low of 0.30 to a high of 11.76. The Oil & Gas industry median Gross Margin % is 25.78. Hindustan Petroleum's value of 12.19% is 52.7% below this industry median. Based on the distribution chart, Hindustan Petroleum ranks #667 out of 869 companies in the Oil & Gas industry, which is in the bottom quartile relative to peers. Overall, Hindustan Petroleum has a GF Score™ of 79/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Hindustan Petroleum's Gross Margin % compare to VLO and MPC?
According to the Oil & Gas industry distribution chart, Hindustan Petroleum ranks #667 out of 869 companies for Gross Margin %. This places Hindustan Petroleum in the lower half of its industry. The industry median Gross Margin % is 25.78. Hindustan Petroleum's value of 12.19% is 52.7% below this benchmark. Historically, Hindustan Petroleum's own Gross Margin % has ranged from 0.30 to 11.76 over the past decade. While the company's 10-year median is 8.28 vs. the industry median of 25.78, Hindustan Petroleum has consistently been below the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Gross Margin % for an Oil & Gas company?
The median Gross Margin % among Oil & Gas companies is 25.78, based on 869 companies in the industry. Companies in the top quartile (top 25%) have a Gross Margin % significantly above this median, while those in the bottom quartile fall well below. However, Gross Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Hindustan Petroleum's current Gross Margin % of 12.19% is 52.7% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Gross Margin % mean?
A high Gross Margin % can signal that a stock is expensive relative to its fundamentals. Gross margin is the ratio of total gross profit to net sales. View historical data on Hindustan Petroleum and its competitors. For the Oil & Gas industry, the median Gross Margin % is 25.78 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Hindustan Petroleum's current Gross Margin % is 12.19%, which is 47% above median its own 10-year median of 8.28. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Hindustan Petroleum stock overvalued right now?
Based on GuruFocus' analysis, Hindustan Petroleum (BOM:500104) is currently considered Fairly Valued. The stock's GF Value™ is ₹388.34, compared to a current price of ₹391.85 — trading 0.9% above its estimated fair value. The current Gross Margin % is 12.19%, which is 47% above median its 10-year median of 8.28 and 52.7% below the Oil & Gas industry median of 25.78. Hindustan Petroleum's overall GF Score™ is 79/100 with 4 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Gross Margin % calculated?
Gross Margin % is calculated from a company's financial statements. For Hindustan Petroleum (BOM:500104), the current Gross Margin % is 12.19% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Hindustan Petroleum (BOM:500104) Overvalued in 2026?
Based on GuruFocus' analysis, Hindustan Petroleum stock appears to be overvalued.
The current stock price of ₹391.85 is trading 0.9% above its estimated GF Value™ of ₹388.34.
GuruFocus considers Hindustan Petroleum to be Fairly Valued.
Key valuation signals for BOM:500104:
Gross Margin %: 12.19% (47% above median its 10-year median of 8.28)
GF Value™: ₹388.34 vs. price of ₹391.85 (0.9% above fair value)
Industry Position: 52.7% below the Oil & Gas median (#667 of 869)
No single metric tells the full story. See the BOM:500104 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Hindustan Petroleum Corp Ltd. (HPCL) is an Indian government enterprise that refines crude oil and manufactures petroleum-based products. The company operates a diverse group of refineries that process several grades of lubes, specialties, and greases along with a variety of petroleum products. HPCL also controls an extensive network of pipelines in India that transport a variety of hydrocarbon-based products. In tandem with its host of pipelines, marketing and distribution efforts are carried out through a group of terminals, service stations, bottling plants, marketing offices, and other facilities. Hindustan's products are sold throughout India. The business is divided into downstream and other operations, with downstream activities generating the maximum revenue.
79GF Score
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