Hindustan Petroleum Corp Ltd (HPCL) share rose over 8% today after the state run oil marketing company reported doubling of its Q2 net profit on surge in refining margins and inventory gains.
HPCL share has gained 8.29% in the last 2 days. The stock opened with a gain of 6.56% at Rs 199 against previous close of Rs 186.75 on BSE. The stock rose up to 8.65% to Rs 202.9 against previous close of Rs 186.75 on BSE. It trades higher than 5 day, 20 day and 50 day moving averages but lower than 100 day and 200 day moving averages.
It has lost 35.52% in one year and fallen 23.83% since the beginning of this year. Total 13.44 lakh shares of the firm changed hands amounting to turnover of Rs 26.86 crore. Market cap of the firm rose to Rs 30,994 crore.
Net profit in Q2 rose to Rs 2,477 crore as compared to Rs 1,052 crore in the corresponding period of previous fiscal.
Gross sales revenue at Rs 61,340 crore was lower than Rs 66,165 crore of Q2 of the previous financial year due to lower oil prices. The firm earned $5.11 on turning every barrel of crude oil into fuel in the second quarter of 2020-21 fiscal as compared to a gross refining margin of $2.83 a barrel.
The board's nod to conduct buyback of shares worth Rs 2,500 crore also led to positive sentiment around the stock. The firm will buy back 10 crore shares, which represents 6.56% equity share, at Rs 250 per share.