HPCL shares extend rally for 5th straight day, jump 4% to hit fresh 52-week high – Khel Ja


HPCL shares surged 4.11% to hit a 52-week high of ₹326.70 apiece on BSE on Thursday.

The stock has been on a gaining streak since November 9. Earlier, the stock rose for nine days on the trot till November 8, which was its longest winning streak since May this year.

Shares of HPCL have gained 7% in the past five sessions since Friday, November 10. Notably, the stock has rallied nearly 30% this month.

The downstream oil refiner HPCL reported its September quarter results recently. Its operating margin stood at 8.6%, which was well above the 5.2% projected by market analysts.

The operating profit or Earnings Before Interest Tax Depreciation and Amortisation (EBITDA) stood at ₹8,217 crore, above the street estimate of ₹6,329 crore.

HPCL’s gross refining margin for the quarter was $13.3 per barrel, up $5.9 from the June quarter and $4.9 from last year.

The company is expanding its refining capacity by 7 MTPA at Vizag and 9 MTPA at Barmer. The Mumbai refinery has already expanded its capacity to 9.5 MTPA from 7.5 MTPA. HPCL has also commissioned a 5 MT regasification and storage terminal at Chhara.

HPCL plans to invest ₹75,000 crore over the next five years, with 25-30% allocated to the renewables business, 20-25% to refining, and the remainder to marketing.

The company is awaiting necessary approvals to spin off its lube business as a separate entity and is also considering either listing it or bringing in a strategic partner.

Shares of HPCL were trading at ₹320.15, up 2.02%, on BSE at 12.22 PM.

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