HPCL rallies 8%, hits 52-week high on strong March quarter results

Shares of Hindustan Petroleum Corporation (HPCL) rallied 8 per cent and hit a 52-week high of Rs 288.15 on the BSE in intra-day trade on Friday after reporting many-fold jump in its March quarter (Q4FY21) net profit to Rs 3,018 crore on the back of inventory gains and rise in refining margins. The state-owned oil marketing company had a net profit of Rs 27 crore in January-March 2020 (Q4FY20).

The company announced final dividend of Rs 22.75 per share, translating to dividend yield of 9 per cent for FY21. It also completed its share buyback program on April 20, 2021.

“HPCL’s marketing sales volumes were 9 per cent above est. at 10.1mmt (+6 per cent YoY). The marketing margin stood at Rs 6/lit (v/s our est. of Rs 5.2; +64 per cent YoY and +15 per cent QoQ)”, Motilal Oswal Securities said.