Stock in Watch: HPCL shares closed up 1.18% in recent sessions, while recording a b gain of nearly 11% in the last month.
Shares of Hindustan Petroleum Corporation Limited (HPCL) have been consistently shining in the stock market lately. In the last three months, HPCL shares have witnessed a tremendous surge of around 21%. Moreover, there has been a rise of approximately 11% in the last month. On Tuesday, the company's shares closed with a gain of 1.18%.
Citi brokerage report boosts confidence
Brokerage house Citi has adopted a positive stance on HPCL, recommending it as a 'buy' stock for the next 90 days. Citi has set a target price of ₹510 for HPCL, which is about 12.5% higher than Tuesday's closing price.
The brokerage believes that there is still ample potential for further growth in HPCL shares. Notably, the company performed exceptionally well in the first quarter of financial year 2026. During this period, the company's EBITDA remained b and the earnings per share (EPS) was ₹22, which is approximately 40% of the estimated profit for the entire year.
Relief in oil prices benefits HPCL
Citi's report also mentions that the decline in crude oil prices in the international market and the stability in petrol and diesel prices at the domestic level are proving beneficial for oil marketing companies like HPCL.
Due to the fall in oil prices, HPCL's refining margins have improved, and the company is making better profits on selling oil per liter. Also, there is no prospect of a cut in fuel prices at present, which could continue to benefit the company going forward.
Government's move on LPG subsidy could be a relief
Another piece of good news for HPCL is that the central government is working on a new system regarding LPG subsidies. If the government creates a mechanism that compensates companies for losses, it will be a big relief for all oil companies, including HPCL.
HPCL is already providing a dividend yield of 5%, meaning investors are getting regular income along with profits.
Strong performance in Q4 FY25 as well
The results of the fourth quarter of financial year 2025 were also encouraging for HPCL. During this period, the company's net profit increased by 11% to reach ₹3,355 crore. Although EBITDA stood at ₹5,803 crore, which was slightly less than the previous quarter, the figures remained b.
Analysts say that the company's balance sheet is strengthening and its debt is under control. In addition, the plan to expand refinery capacity and strengthen the retail network could also be beneficial for HPCL in the future.
Analysts believe the stock will run further
Analysts' views on HPCL in the stock market remain positive. Out of the 35 analysts present in the market, 25 have advised buying HPCL. Three analysts have suggested holding it, while only seven analysts have given a sell rating.
Analysts believe that the company's financial figures are improving and that the relief in crude oil prices will lead to further improvement in margins. This is the reason why the share of HPCL is expected to gain further momentum in the coming time.
Tracking the movement of HPCL shares in the market
The movement of HPCL shares in the market is consistently moving towards strength. In the last month, the share has jumped by 11%, while in three months it has jumped by 21%.
Stock market experts say that HPCL's current position makes it b, especially when there is stability in the prices of petroleum products and the company is continuously delivering better results.
