HPCL's earnings growth is set to accelerate as major projects like Vizag RUF come on stream, capex intensity falls, and operating efficiencies improve despite near-term risks
HPCL has retreated sharply from its all-time high, and also underperformed its peers BPCL and IOC in the month of January thus far. Tech chart shows the stock is trading at the 200-DMA on Friday.
Refiner was unable to do so earlier due to the crude's high acidic nature
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State-run HPCL reported a sharp rise in December-quarter profit, aided by stronger refining margins and LPG compensation, even as sales volumes improved and revenue rose modestly year-on-year
Additionally, fuel consumption in India, the world's third-largest consumer and importer of oil, also hit a record high in December following a six-month peak in November
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The brokerage said INR depreciation of about 6% Y-o-Y in Q3 has weighed on margins of OMCs and CGD players, partly offsetting the benefit of softer crude oil prices.
The US President Donald Trump approved a bipartisan Bill titled the 'Sanctioning of Russia Act 2025', according to US Senator Lindsey Graham
Reliance Industries was the biggest dragger on the Nifty Oil & Gas Index, while ONGC helped limit the losses on Tuesday.
Motilal Oswal expects its coverage universe to report a 4 per cent Y-o-Y decline in sales in Q3FY26, while Ebitda and PAT are projected to grow 16 per cent and 25 per cent Y-o-Y
Hindustan Petroleum Corporation Ltd (HPCL) has commissioned a residue upgradation facility (RUF) at its Visakhapatnam refinery, significantly enhancing the plant's deep-conversion capability, distillate output and profitability, the company said on Monday. The 3.55 million tonnes-per-year facility includes India's first residue hydrocracking unit and the world's first LC-Max unit, capable of converting about 93 per cent of low-value bottom-of-the-barrel oils into high-value petroleum products. The project marks a major step in upgrading India's refining complexity and reducing dependence on imported fuels. HPCL in a statement said the new unit will raise distillate yields at the Visakh refinery by up to 10 per cent from pre-modernisation levels, and substantially improve gross refining margins by enabling the processing of heavier and opportunity crudes and delivering a superior product slate. The commissioning follows the Visakh Refinery Modernisation Project and lifts the refiner
OMC's are well positioned to benefit from fall in crude prices, improvement in refining margins, fuel consumption growth and petchem demand growth in India.
Analysts at Choice remain bullish on Mahindra & Mahindra, Marico, and Hindustan Petroleum, assigning 'Buy' ratings to these stocks based on their strong long-term uptrend & solid technical indicators
HPCL Mittal Energy plans to invest Rs 2,600 crore at its Bathinda refinery to build polypropylene downstream industries and start fine chemical projects to expand its business
Bharti Airtel, Larsen & Toubro, Varun Beverages, Tata Consumer Products and HPCL can rally up to 20 per cent from here, explains Drumil Vithlani, Technical Research Analyst at Bonanza.
JM Financial said Brent crude is likely to remain subdued at around $65 per barrel in the near term, at least until the US mid-term elections in November 2026
Analysts at YES Securities have recommended a 'BUY' rating on Chennai Petro, MRPL, BPCL and Reliance Industries on the back of upbeat prospects for these oil refining companies.
Despite the near-term volatility, HPCL's valuations remain reasonable, the brokerage noted. The stock trades at 1.4x one-year forward price-to-book, slightly above its long-term average of 1.2x.
Antique Stock Broking reiterated 'Buy' on Hindustan Petroleum Corp., Bharat Petroleum Corp., and Indian Oil Corp, with HPCL as the top pick