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After a strong run earlier this week, HPCL’s (Hindustan Petroleum Corporation Limited) share price slipped sharply today. The stock is down nearly 5 per cent, trading at Rs 394, as global crude prices climb and margin worries resurface.
Why the sudden drop?
Blame the spike in crude. Oil prices rose around 4-5 per cent overnight, fuelled by escalating tensions in the Middle East. For refiners like HPCL, that’s bad news. Input costs go up instantly, but pump prices often don’t catch up fast enough, especially when the government keeps a lid on retail fuel rates.
And when margins take a hit, so does investor confidence.
About the company
HPCL is one of India’s largest oil refiners and fuel retailers. It operates refineries in Mumbai and Visakhapatnam and has a massive network of petrol pumps and LPG dealerships. It’s also a government-owned entity, with ONGC as the parent.
Let’s break down the company’s fundamentals.
| Metric | Value |
|---|---|
| Market cap | Rs 84,236 crore |
| P/E ratio | 12.5 |
| P/B ratio | 1.6 |
| ROE | 40.4 per cent |
| ROCE | 22.1 per cent |
| Book value | Rs 240.4 |
| EPS | Rs 33.1 |
| Dividend yield | 2.6 per cent |
Value Research Online ratings
- Overall: 3/5
- Quality: 4/10
- Growth: 7/10
- Valuation: 6/10
- Momentum: 4/10
The bottom line
Crude is in the driver’s seat today, and HPCL is feeling the heat. But unless oil prices spiral out of control, this drop looks more like a pit stop than a breakdown.
Watch for stability in global oil, and the stock may just find its feet again.
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Disclaimer: This is not a stock recommendation. This story was created with the assistance of artificial intelligence and is intended for informational purposes only. Please take it with a pinch of salt and do your own research or consult a financial advisor before making investment decisions.
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