Bull of the week: Stock that rallied 7% in falling mkts

19616 Investors following HPCL. Share this News with them.

0

Like this story, share it with millions of investors on M3

Bull of the week: Stock that rallied 7% in falling mkts

Hindustan Petroleum Corporation (HPCL) was up 0.50% or Rs 1.80 to end at Rs 365.35 on the BSE. It touched an intraday high of Rs 368 and an intraday low of Rs 352.35. There were pending buy orders of 219 shares, with no sellers available. The total traded volumes were of 129,281 shares.

Post your opinion here

 

0

Tweet

Share on Tumblr

HPCL BSE | NSE 30/05/12 Are Mutual Funds betting on HPCL? Other Stocks in this news Reliance Industries | Indian Oil Corporation | Essar Oil | Mangalore Refinery and Petrochemicals | Chennai Petroleum Corporation |

It was absolute mayhem at the markets today. The Friday fall capped off a dismal week on Dalal Street. The Nifty and Sensex shed 3.5% in just four trading sessions.

However, Hindustan Petroleum Corporation (HPCL) bucked the market trend and gained 7% in this week. 

Today, the stock was up 0.50% or Rs 1.80 to end at Rs 365.35 on the BSE. It touched an intraday high of Rs 368 and an intraday low of Rs 352.35. There were pending buy orders of 219 shares, with no sellers available. The total traded volumes were of 129,281 shares.

Why the run up?

On January 24, 2011, Oil Ministry sources said that the Finance Ministry is likely to approve subsidy for oil companies soon. PSU companies will post Q3 results after the fresh subsidy. However, Finance Ministry may approve Rs 10,000 crore oil subsidy soon, reported CNBC-TV18, quoting NewsWire18. That news could have helped the stock to gain.

What analysts say?

Manish Shah, Head Technical Analyst, Fortune Financial Services said that, "ONGC is holding on quite well. Stocks like BPCL, HPCL have seen some sort of a rally. My take would be that a small short-term trade in stocks like HPCL and BPCL could be a reasonably good bet."

On January 27, 2011 Technical Analyst, Mitesh Thacker said that, "We have liked the refining stocks for sometime now. I think BPCL, HPCL have shown the first signs of reversal, this will continue for sometime, in fact BPCL was one of our top picks in the last week update. I think there is still some more trading upside left, they have gone through a good downtrend and now it is showing clear signal of bounce back happening over there."

Thacker further added, "HPCL could show some good movement, Rs 435 is slightly on the higher side, but that target is extremely possible. In case, we get some correction over the next few days these stocks will again come on our trading radar."

About the company:

HPCL is a Fortune 500 company, with an annual turnover of  Rs 1,08,599 crore and sales/income from operations of Rs 1,14,889 crores (USD 25,306 millions) during FY 2009-10, having about 20% marketing share in India and a strong market infrastructure.

The company touched its 52-week high Rs 555.45 and 52-week low Rs 304.15 on September 15, 2010 and April 29, 2010, respectively. Currently, it is trading -34.22% below its 52-week high and 20.12% above its 52-week low. Its market capitalisation stands at Rs 12,371.75 crore.

The company's trailing 12-month (TTM) EPS was at Rs 29.36 per share. The stock's price-to-earnings (P/E) ratio was 12.44. The latest book value of the company is Rs 341.31 per share. At current value, the price-to-book value of the company was 1.07. The dividend yield of the company was 3.28%.

Peer comparison: