Shares of Hindustan Petroleum Corp Ltd rallied 5.06 percent on Thursday, March 16, after the company announced that it has signed an agreement with global supermajor Chevron to manufacture, distribute and market its lubricants in India.
HPCL already has its own brand of lubricants and this would be in addition to the existing ones.
During Thursday’s trade, the stock opened at a price of Rs. 233 per share, against the previous close of Rs. 230.35 per share and grew further during the early trading session to touch an intraday high of Rs. 242 apiece.
It was trading at ₹241.50, up by 4.84 percent, at 11:10 a.m. on the NSE.
The stock touched a 52-week high of Rs. 306.70 on April 11, 2022 and a 52-week low of Rs. 200.05 on October 20, 2022, indicating that at the current level, the stock is trading over 20 percent above its 52-week low and 21.25 percent below its 52-week high.
The stock has increased by 4.43 percent in the last one month. In contrast, in the past one year, it has declined by almost 13 percent. The stock yielded a negative return of over 33 percent in the last five years.
On Wednesday, the company informed through an official filing that Chevron Corporation has entered into a long-term trademark licensing agreement with HPCL.
Under the agreement, Chevron Brands International LLC will license, manufacture, distribute, and market its lubricant products under the Caltex brand, including Chevron’s Havoline and Delo branded lubricant products.
The collaboration is expected to benefit both companies by providing access to a wide range of lubricant products in India.
“This exciting partnership paves the way to leverage HPCL’s market leadership to add value via a broader, premium product offering to Indian consumers through synergies between HPCL and Chevron," said Amit Garg, director of marketing of HPCL.
Domestic brokerage ICICI Direct has a ‘buy’ call on Hindustan Petroleum Corporation with a target price of ₹230.7, reported ET.
Hindustan Petroleum Corporation Limited is engaged in the business of refining of crude oil and marketing of petroleum products, production of hydrocarbons and providing services for the management of exploration and production (E&P) blocks, generation of power and operating liquefied natural gas (LNG) regasification terminal.
According to a MintGenie poll, 31 analysts on an average have a ‘BUY’ call on the stock.