HPCL shares decline, see performance and future plans

HPCL Stock Updates: On 8 November 2024, HPCL Ltd. experienced a decline of 3.0% in its stock price, closing at Rs 385.05. This downturn is linked to the negative trend in the oil exploration and refining industry. Despite this, the stock continues to perform well in terms of moving averages and boasts a high dividend yield of 4.16%. Its underperformance is evident as the stock has decreased by 1.48% compared to the sector average.

Furthermore, in comparison to the overall market, HPCL's stock has underperformed against the Sensex by 3.07% over the past day and by 2.33% over the past month.

However, it's important to emphasize that this assessment reflects only short-term performance and does not account for the company's long-term potential.

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Investors may also be interested to know that HPCL currently has a high dividend yield of 4.16% at its current price. This could be a potential factor for those looking for stable returns.

HPCL's Future Plans

Further, the state-run oil company plans to increase its annual crude oil imports from Iraq to 100,000 barrels per day (bpd) in 2025, marking a 43% growth from its current import deal of 70,000 bpd in 2024. This expansion aligns with HPCL’s ongoing refinery upgrades and increased demand for crude. The increased imports will support the expansion of HPCL’s Vizag refinery in Southern India, which is undergoing an upgrade to boost its capacity from 274,000 bpd to 300,000 bpd.

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HPCL invested Rs. 2,017 Crore during 1Q FY 2025 to further strengthen its refining and marketing infrastructure, including its equity investment in joint venture and subsidiary companies. Expanding its footprints in the City Gas Distribution (CGD) network, HPCL commenced Compressed Natural Gas (CNG) sales in Rajasthan's Geographical Areas (Tonk, Sawai Madhopur, Karauli and Dausa) during 1Q FY 2025.

HPCL executed 3 Master Sales Purchase Agreements (MSPAs) with suppliers during 1Q FY 2025 for sourcing Spot LNG cargoes, taking the total count to 8 MSPAs.

As part of value-unlocking initiatives being undertaken for the Lubricants business, initiatives around supply chain, cost optimization, product-mix spread, and customer engagement have been rolled out to improve efficiency. Simultaneously, approvals for carve-out of the business are under active consideration of the Appropriate Authority.

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