The HPCL share gained further today on broad-based buying in public sector undertaking (PSU) stocks. At close, the scrip stood 9.81 per cent higher at Rs 283.80.
Dealers said punters were very active in the counter as also in other PSU shares owing to expectations from the coming Budget. The rise in HPCL is also attributed to the feeling that the stock is undervalued compared with BPCL, relative to its capacity and market share.
The stock also got a push from the Railway budget today following the announcement that rationalisation in freight rates would benefit some petroleum products. Analysts added that the rise in HPCL was also on expectations from the Budget on the disinvestment front.
In the last 37 sessions, HPCL rose 92 per cent to Rs 258.45 on February 25, 2002, from Rs 134.80 on January 3, 2002. In the same period, the scrip touched a high of 36.39 lakh shares on February 8, 2002, and a low of 44,920 on January 17, 2002.
The company has unveiled its third quarter results. For the quarter ended December 31, 2001, HPCL posted a massive 82 per cent fall in net profit to Rs 60.81 crore, compared with Rs 338.36 crore in the corresponding period last year. Net sales also declined by 16 per cent to Rs 11,165.28 crore from Rs 13,264.99 crore in the December quarter 2000.
The company reported that the considerable decline in international prices of petroleum products during the quarter resulted in erosion in the value of inventories as well as net sales.
The December quarter results fell far below analysts' projections. A capitalmarket.com poll of four refinery analysts had estimated the company's net profit in the range of Rs 214 crore and Rs 225 crore, a fall of 33.5 per cent to 36.8 per cent.
Net sales outperformed market expectations. Analysts expected the company's sales at between Rs 8,878.50 crore and Rs 10,500 crore, while the company registered a 16 per cent drop in sales to Rs 11,165.28 crore.
