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HPCL Shares Surge over 5 Percent After Firm's Buyback Plan

Representative Image

Representative Image

HPCL is now trading at 21.5 per cent up from its 52-week low of Rs 150 a piece. The total market capitalisation of the firm has reached Rs 28,716 crore. It is, however, still far below its value at this time last year, which stood over Rs 320 a piece.

Hindustan Petroleum Corporation (HPCL) share prices saw a jump of over 5 per cent on Friday and it is likely to be a good time for investors looking for short term gains to put money at the current levels. The share price opened at Rs 184.50 before reaching a high of Rs 189.60 a piece on NSE.

HPCL is now trading at 21.5 per cent up from its 52-week low of Rs 150 a piece. The total market capitalisation of the firm has reached Rs 28,716 crore. It is, however, still far below its value at this time last year, which stood over Rs 320 a piece.

The surge comes after the company’s statement that it is mulling to buy back its share on November 4 when the board of directors will meet to review the financial results for the July-September quarter and April-September half year of the fiscal year 2020-21. The company has said that the board will consider a proposal to buy back the fully paid equity shares of the company of the face value of Rs 10 each.

In the month of June and July when it was trading at Rs 240, the firm faced a stern resistance in the market leading it to a path of gradual decline. The downward trend continued till the second week of October as its share prices plummeted. It then attained some stability in the range of Rs 160 to Rs 165 and has finally started to gain ground. The buyback plan of the company has amplified the growth trend, which is likely to continue in the near future.

The daily Relative strength index has also improved and it is trading higher in the neutral region, while the weekly RSI has moved up from the bearish region to the neutral zone. Only last week, the company had raised Rs 2000 crore in debt to fund its capital expenditure.

At 1 PM, HPCL was trading at Rs 186.50, up Rs 7 or 3.90 per cent on the NSE.


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