Refining Profits: How HPCL Yielded 2,105% Returns

Published by Trinkerr Academy on

If you had invested ₹1 lakh in HPCL in October 2002, you could have had ₹35 lakhs today! This multibagger gave its investors 21x growth in 20 years, with ₹21,05,029 in profits + ₹13,97,390 in dividends. Here’s a quick look at the company.

⛏️ Stock Name: Hindustan Petroleum Corporation Ltd.

🌱 About The Company

Hindustan Petroleum is a Maharatna Central Public Sector Enterprise (CPSE), which is engaged in the business of:
⛽ Refining crude oil
⛽ International trade
⛽ Handling petrol pumps
⛽ Production of hydrocarbons
⛽ Marketing of petroleum products
⛽ Exploration & production of alternate energy sources
⛽ Production of LPG, aviation fuels, lubes and specialities
⛽ Providing services for the management of exploration & production blocks

HPCL owns and operates two major refineries in Mumbai and Visakhapatnam, that produce a wide variety of petroleum fuels and specialities. It also owns and operates the largest lube refinery, which accounts for over 40% of India’s total lube base oil production.

🔎 Units

HP Retail Business, a unit of HPCL is engaged in the business of automotive fuels, lubricants and other value-added services in the private transport sector across the country. This is carried out through a dedicated network of petrol pumps.

The company provides fueling services to the aviation industry through its business unit—HP Aviation, which is also called Hindustan Aviation. The network also covers all major airports in India and is currently expanding.

💰 Stock Value
💵 HPCL had two bonus issues:
📅 On September 14, 2016, a bonus issue in the ratio of 2:1 (2141 x 3)
📅 On July 11, 2017, a bonus issue in the ratio of 1:2 (6423 x 1.5)

The effective number of shares went from 2141 to 9634.

💵 On October 8, 2002, the shares of the company were trading at ₹46.70, while they were priced at ₹218.50 as of October 7, 2022.


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