During the previous six months, the stock of Hindustan Petroleum Corp Ltd (HPCL) has returned 3.05 percent. The standard Nifty 50 indicator has given a return of 6.28 percent over the same duration.
HPCL’s average gross refining periphery(GRM) for the first half of FY24 was $10.49 per barrel, as against $12.62 during the matching period last time. Shares of Hindustan Petroleum Corporation Limited(HPCL) rallied nearly 3.5 percent on November 7 as the oil painting refining and marketing PSU swung to a astral net profit in Q2 FY24 on the reverse of lower crude prices. At 1137 am, the stock was trading at Rs 271.90 on the NSE.
HPCL on November 6 reported a consolidated net profit of Rs 5,826.96 crore for the alternate quarter of 2023- 24, turning into green from Rs 2,476 crore in the red a time back because of record-high crude oil painting prices.
HPCL beat Bloomberg estimates of Rs 2,990 crore net profit the alternate quarter. Healthier marketing perimeters from last time helped the company book gains in the quarter.
Brokerage views, target prices
Jefferies has given HPCL an’ underperform’ standing with a target price of Rs 225 per share in a report released after the results. “Despite worse refining perimeters, Due mostly to higher force profits, HPCL’s EBITDA in the third quarter of FY24 exceeded forecasts. The refining perimeters dropped significantly in Q3, reducing marketing losses, ” it said. still, Jefferies anticipates lower earnings in the alternate half of FY24 due to ongoing marketing losses in diesel and a compressed Gross Refining periphery(GRM). The forthcoming choices may hamper any implicit hike in retail energy prices. Despite this, Jefferies raised their FY24 EBITDA outlook grounded on a stronger H1FY24 performance.
Brokerage establishment Motilal Oswal’s recent exploration report has assigned a’ neutral’ standing for HPCL, with a target price of Rs 265.
HPCL Stock Performance
The last six months have seen a 3.05 percent gain on the HPCL stock. The standard Nifty 50 indicator has given a return of 6.28 percent over the same duration. fiscal results HPCL’s net profit declined 14 percent successionally, as it posted a profit of Rs 6,765.50 in the June quarter. Profit slipped in Q2 from the last quarter as crude oil painting prices gained instigation since July amid force cuts and geopolitical pressures. Brent crude oil painting equaled about$ 87 per barrel in the July- September quarter, a gain of 11 percent from the first quarter, brokerage Motilal Oswal said.
In Q2, earnings before interest, duty, deprecation and amortisation( EBITDA) fell 15 percent from last quarter at Rs 9,280.36 crore, as against Rs 10,944.82 crore in Q1FY24.
Also Read HPCL swings back to profit on- time at Rs 5,827 crore in Q2 amid lower crude prices Its profit declined nearly 10 percent to Rs 1.02 lakh crore, compared to Rs 1.13 lakh crore in the same period last time.
HPCL’s average gross refining periphery(GRM) for the first half of FY24 was $10.49 per barrel, as against $12.62 during the matching period last time, the company said in a stock exchange form. The company’s outturn was 5.75 million metric tonne (MMT) during the quarter, compared to 4.49 MMT last time. On the marketing front, HPCL achieved daily total deals volume(including exports) of 10.74 MMT during July- September 2023 from 10.39 MMT in last time, representing a growth of 3.4 percent, the company said in a press release. During the quarter, HPCL opened 189 new retail locations nationwide, bringing the total to 21,431 locations.