HPCL advances on robust Q2 results

HPCL rose 1.96% to Rs 552.40 at 10:37 IST on BSE after the company reported 166.59% surge in net profit to Rs 850.21 crore on 0.35% fall in total income to Rs 51964 crore in Q2 September 2014 over Q2 September 2013.

The company announced Q2 results after market hours Thursday, 13 November 2014.

Meanwhile, the S&P BSE Sensex was up 64.74 points or 0.23% at 28,005.38.

On BSE, so far 90,148 shares were traded in the counter as against average daily volume of 2.17 lakh shares in the past one quarter.

The stock hit a high of Rs 563 and a low of Rs 549.35 so far during the day. The stock had hit a record high of Rs 588.80 on 12 November 2014. The stock had hit a 52-week low of Rs 199 on 22 November 2013.

The stock had outperformed the market over the past one month till 13 November 2014, gaining 6.6% compared with the Sensex's 5.9% rise. The scrip had also outperformed the market in past one quarter, jumping 30.68% as against Sensex's 7.8% rise.

Recent fall in crude oil prices has perked up the prices of HPCL stock along with other PSU OMCs. Lower crude oil prices could reduce under-recoveries of PSU OMCs on domestic sale of LPG and kerosene at controlled prices. The government has already freed pricing of petrol and diesel.

The large-cap PSU oil marketing firm has an equity capital of Rs 338.63 crore. Face value per share is Rs 10.

The Government of India holds 51.11% stake in HPCL as at 30 September 2014.

Meanwhile, government on Thursday, 13 November 2014, hiked excise duty on petrol and diesel by Rs 1.50 per litre each for the two fuels.

Investors are expecting no change in petrol and diesel prices in next revision on 16 November 2014. PSU OMCs review fuel prices on 1st and 16th of every month based on the average imported oil price in the previous fortnight. Recent fall in crude oil prices strengthened the case for a cut in fuel prices but surprise hike in excise duty on fuel prices negated the case for a fuel price cut.

Brent crude oil slumped yesterday, 13 November 2014 to the lowest in four years amid signs that OPEC remains unwilling to reduce output to ease a supply glut. Brent for January settlement was up 54 cents at $78.03 a barrel. The contract had lost $3.63 a barrel to settle at $77.49 a barrel yesterday, 12 November 2014, its lowest close since September 2010.

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