 "HPCL gains 5% as board to consider share buyback on November 4")
Shares of Hindustan Petroleum Corporation (HPCL) gained 5 per cent to Rs 189.50 on the BSE on Friday after the state-owned oil marketing company said it will consider a proposal to buy back shares at its next board meeting on Wednesday, November 4, 2020.
Earlier, October 22, 2020, HPCL had informed that the board of directors of the company is scheduled to meet on Wednesday, November 04, 2020 for consideration and approval of financial results of the company for the second quarter & half year ended September 30, 2020.
“We now wish to inform you that in the aforesaid board meeting, the board will also consider a proposal to buy-back the fully paid equity shares of face value of Rs 10 each of the company”, BPCL said in exchange filing on Thursday after market hours.
In the past three months, HPCL's stock corrected 20 per cent, as compared to 5 per cent rise in the S&P BSE Sensex.
Post the recent correction in the stock price, buyback of shares will reward minority shareholders. The attractiveness of the buyback will be determined when the quantum and price of buyback is announced, ICICI Securities said in a note.
Meanwhile, Kotak Securities expects HPCL's Ebitda (earnings before interest, taxes, depreciation, and amortisation) to decline sequentially led by lower auto fuel marketing margins (- Rs3/liter qoq) and nil adventitious gains amid stable oil prices, which will partly increase in refining margins and marketing sales volumes. The brokerage firm assume normalized refining margins to improve to US$2/bbl (+US$2.9/bbl qoq), crude through put to remain steady at 4 million tons and domestic sales volumes to decline 11 per cent year-on-year (yoy) to 8 million tons.
In the April-June quarter (Q1FY21), HPCL performed slightly better than the industry but in line with PSU peers. MS/HSD retail volumes were 63/68 per cent of normal (yoy levels) in May, which improved to 85 per cent each in June. LPG demand was 123 per cent. 1.05 million cylinders were delivered per day on an average in Q1. Overall demand was 74.2 per cent of normal in Q1FY21.
“HPCL does not expect demand to fall below 75 per cent of normal and by Q3, the festive season should lead to an uptick. Pick-up in India demand is quite good. Petrol should be at 80-85 per cent of normal and diesel at 70-75 per cent due to the impact from monsoons. FY22 demand could be similar to what would have been normal in FY21,” analysts at Emkay Global Financial Services said in Q1FY21 result update.
Earlier, October 22, 2020, HPCL had informed that the board of directors of the company is scheduled to meet on Wednesday, November 04, 2020 for consideration and approval of financial results of the company for the second quarter & half year ended September 30, 2020.
“We now wish to inform you that in the aforesaid board meeting, the board will also consider a proposal to buy-back the fully paid equity shares of face value of Rs 10 each of the company”, BPCL said in exchange filing on Thursday after market hours.
In the past three months, HPCL's stock corrected 20 per cent, as compared to 5 per cent rise in the S&P BSE Sensex.
Post the recent correction in the stock price, buyback of shares will reward minority shareholders. The attractiveness of the buyback will be determined when the quantum and price of buyback is announced, ICICI Securities said in a note.
Meanwhile, Kotak Securities expects HPCL's Ebitda (earnings before interest, taxes, depreciation, and amortisation) to decline sequentially led by lower auto fuel marketing margins (- Rs3/liter qoq) and nil adventitious gains amid stable oil prices, which will partly increase in refining margins and marketing sales volumes. The brokerage firm assume normalized refining margins to improve to US$2/bbl (+US$2.9/bbl qoq), crude through put to remain steady at 4 million tons and domestic sales volumes to decline 11 per cent year-on-year (yoy) to 8 million tons.
In the April-June quarter (Q1FY21), HPCL performed slightly better than the industry but in line with PSU peers. MS/HSD retail volumes were 63/68 per cent of normal (yoy levels) in May, which improved to 85 per cent each in June. LPG demand was 123 per cent. 1.05 million cylinders were delivered per day on an average in Q1. Overall demand was 74.2 per cent of normal in Q1FY21.
“HPCL does not expect demand to fall below 75 per cent of normal and by Q3, the festive season should lead to an uptick. Pick-up in India demand is quite good. Petrol should be at 80-85 per cent of normal and diesel at 70-75 per cent due to the impact from monsoons. FY22 demand could be similar to what would have been normal in FY21,” analysts at Emkay Global Financial Services said in Q1FY21 result update.
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