HPCL shares hit 52-week high; here is why investors remain upbeat

The strong upmove in the stock came after news agency Press Trust of India reported that the state-run oil marketing company plans to start operations at its five-million-tonnes-a-year LNG import terminal in Chhara, Gujarat in the next couple of months.

HPCL had already received offers from 6-7 parties to hire capacity, image- Reuters

Hindustan Petroleum Corporation (HPCL) shares jumped to register a fresh 52-week high on Friday, December 1, continuing to rise for the third trading session in a row. The HPCL stock strengthened by as much as Rs 8.8, or 2.5 per cent, to Rs 356.1, surpassing an earlier peak of Rs 351 scaled last month.

The strong upmove in the stock came after news agency Press Trust of India reported that the state-run oil marketing company plans to start operations at its five-million-tonnes-a-year LNG import terminal in Chhara, Gujarat in the next couple of months.

The company had already received offers from 6-7 parties to hire capacity, and a decision would be taken soon, the report quoted HPCL Director (Marketing) Amit Garg as saying.

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The terminal was mechanically completed in March but its commissioning was delayed as a 40-kilometre pipeline connecting it to an existing network meant for sales to consumers was not yet ready.

“We will commission the LNG terminal in the next couple of months,” Garg said.

HPCL built the facility, located in Chhara in the Gir-Somnath district of the state, to receive natural gas super-cooled to a liquid state in cryogenic ships.

HPCL share price: Past performance

In 2023 so far, HPCL shares have rewarded investors with a return of nearly 50 per cent, sharply outperforming a more than 11 per cent rise in the headline Nifty index.