The share price of Hindustan Petroleum Corporation (HPCL) jumped over 8 percent to hit a 52-week high of Rs 288.15 apiece on Friday after the company reported strong earnings for the fourth quarter of fiscal 2021.
The state-run oil retailer posted a standalone net profit of Rs 3,018 crore for the quarter ended March 2021, registering a 28.2 percent sequential growth led by better-than-expected operating performance.
The company's profit in the December 2020 quarter stood at Rs 2,345.6 crore.
HPCL's standalone revenue from operations increased 10 percent to Rs 85,203.55 crore from Rs 77,412.68 crore, QoQ.
On the operational front, EBITDA rose 41.3 percent to Rs 4,666.4 crore and EBITDA margin expanded by 140 bps to 6.2 percent, sequentially.
"Average gross refining margin during the year ended March 31, 2021, was $3.86 per barrel as against $1.02 per barrel during the corresponding previous year," HPCL said in a regulatory filing on Thursday.
Citi has maintained a Buy call on the stock with a target price of Rs 295 per share.
HPCL reported exceptionally strong performance throughout the year with full-year standalone EPS at Rs 71 per share versus Rs 17 per share in FY20, Citi said.
Given attractive valuations, Citi maintains a positive view on OMCs.
Jefferies said that HPCL's significant EBITDA beat was on much higher inventory gains in refining and marketing. Marketing volume growth was sharply ahead of industry growth.
The brokerage believes that marketing profitability will be restored as crude price cools and retail price hikes continue.
it maintained a Buy rating with a target price of Rs 370 per share, however, cut earnings estimates by 3 percent/5 percent for FY22/23 on ongoing restrictions.
JPMorgan has an Overweight rating on the stock with the target price raised to Rs 330 per share from Rs 285 earlier.
JPMorgan sees a sharp improvement in underlying operating performance. It increased FY22-23 EPS estimates by 14 percent and 8 percent.
At 9:45 am, the shares of HPCL were trading 4.62 percent higher at Rs 278.75 apiece on the BSE.