HPCL shares gained 39% in November, best monthly performance since 2007; what led to the rally?

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₹249.50 apiece to ₹347.40 apiece, marking a stellar gain of 39.28%. This surge represents the stock's most outstanding monthly performance since December 2007. Also Read: Oil rises 1% after OPEC agrees to 1 million bpd supply cut; Brent reaches $84 Notably, the stock achieved a staggering 48% rally this year so far, with a remarkable 81% of this surge concentrated in the month of November alone.

The phenomenal rise in the stock's value has propelled HPCL's market capitalisation to approach the significant ₹50,000 crore mark. At its 52-week high of ₹351 apiece, the company's market cap reached ₹49,789 crore. The stock gained traction after investors cheered the company's Q2FY24 results, as the company reported a good set of numbers for the September quarter.

Average GRMs were higher than in previous quarters, contributing to the stock's upward trajectory. According to Sonam Srivastava, Founder and Fund Manager at Wright Research, PMS, HPCL experienced a significant improvement in refining margins, benefiting from a wider spread between crude oil and refined product prices, thereby enhancing profitability. Also Read: Crude below $80/barrel to support OMCs in near-term; ONGC, Oil India key beneficiaries of high prices Additionally, Srivastava highlighted that HPCL has gained from an increase in the value of its marketing inventory, positively impacting its financial results.