HPCL's outlook firm as refining, marketing prospects improve

Company should post good results for March quarter led by higher margins in the two businesses

Investors in Hindustan Petroleum Corporation (HPCL) could be in for a surprise after seeing months of declines in their holding values.

HPCL has been in the limelight ever since Oil and Natural Gas Corporation (ONGC) was asked to acquire the government’s majority stake in the former. HPCL’s share price, on a downtrend journey since its September high of Rs 493, had lost further ground after details of the acquisition were announced on January 20.

The Street was disappointed as it was an off-market transaction between the government and ONGC, and investors did not benefit from the premium ONGC paid