Stock Performance and Market Context
On 31 Dec 2025, HPCL surged to an intraday high of Rs.495.4, representing a 5.78% increase from the previous close and outperforming the Oil Exploration and Refinery sector by 3.18%. This marks a substantial advance from its 52-week low of Rs.287.55, underscoring a remarkable recovery and growth trajectory over the past year.
The broader market environment has been supportive, with the Sensex climbing 491.10 points to close at 85,284.68, just 1.03% shy of its own 52-week high of 86,159.02. The Sensex’s bullish stance is further confirmed by its trading above the 50-day moving average, which itself remains above the 200-day moving average, signalling sustained upward momentum. Additionally, the BSE Small Cap index gained 1.1%, indicating broad-based market strength.
Technical Indicators and Moving Averages
HPCL’s price currently trades above all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages. This technical positioning reflects strong buying interest and a positive trend across multiple timeframes. The stock’s ability to maintain levels above these averages often signals continued investor confidence and resilience in price action.
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Financial Performance Driving the Rally
HPCL’s recent financial results have been a key driver behind the stock’s upward momentum. The company has reported positive results for three consecutive quarters, with a notable increase in profitability metrics. The Profit Before Tax excluding Other Income (PBT LESS OI) for the latest quarter stood at Rs.4,608.59 crore, reflecting a 57.9% growth compared to the previous four-quarter average. Similarly, the Profit After Tax (PAT) for the quarter was Rs.3,859.30 crore, up 51.2% against the prior four-quarter average.
Over the past year, HPCL’s net sales have grown at an annual rate of 13.76%, while operating profit has expanded by 26.26%. These figures highlight the company’s ability to enhance operational efficiency and revenue generation in a competitive oil sector environment.
Valuation and Dividend Yield
The stock currently offers a high dividend yield of 3.31%, providing an attractive income component for shareholders. HPCL’s return on capital employed (ROCE) stands at 17.1%, indicating efficient utilisation of capital to generate profits. The company’s enterprise value to capital employed ratio is 1.4, suggesting a very attractive valuation relative to its capital base.
Compared to its peers, HPCL is trading at a discount to average historical valuations, which may reflect market recognition of its strong fundamentals and growth prospects. The company’s PEG ratio is effectively zero, underscoring the substantial profit growth relative to its price appreciation over the past year.
Institutional Holdings and Market Standing
Institutional investors hold a significant 36.73% stake in HPCL, reflecting confidence from entities with extensive analytical resources. This level of institutional ownership often correlates with greater market stability and informed price discovery.
HPCL is ranked among the highest 1% of companies rated by MarketsMojo across a universe of over 4,000 stocks. It holds the 7th position among Mid Cap companies and ranks 17th across the entire market, reflecting its strong fundamental and valuation credentials.
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Comparative Performance Over One Year
HPCL’s stock has delivered a total return of 20.99% over the last 12 months, significantly outperforming the Sensex’s 9.14% gain during the same period. This outperformance is supported by a remarkable 231.8% increase in profits over the year, highlighting the company’s strong earnings momentum.
Moreover, HPCL has consistently outperformed the BSE500 index in each of the last three annual periods, demonstrating sustained value creation for shareholders over multiple years.
Sector and Industry Context
The Oil sector, particularly the Oil Exploration and Refinery segment, has experienced a positive trend with a 2.42% gain on the day HPCL reached its new high. HPCL’s outperformance relative to its sector peers by 3.18% on the day further emphasises its leadership position within the industry.
The company’s strong fundamentals, combined with favourable market dynamics, have contributed to its current valuation and price momentum.
Summary of Key Metrics
To summarise, HPCL’s key metrics as of 31 Dec 2025 include:
- New 52-week high price: Rs.495.4
- Day’s price increase: 5.66%
- Dividend yield: 3.31%
- Net sales growth (annual): 13.76%
- Operating profit growth (annual): 26.26%
- PBT LESS OI quarterly growth: 57.9%
- PAT quarterly growth: 51.2%
- ROCE: 17.1%
- Enterprise value to capital employed: 1.4
- Institutional holdings: 36.73%
- MarketsMojo Mojo Score: 81.0 (Strong Buy, upgraded from Buy on 30 Dec 2025)
These figures collectively illustrate the robust financial health and market positioning of Hindustan Petroleum Corporation Ltd., underpinning its recent price milestone.
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