Shares of Hindustan Petroleum Corporation (HPCL) jumped 6 per cent in Thursday’s early trade after the company’s board approved Rs 2,500 crore share buyback plan as its management feels that the share prices are lower than the value it deserves.
The company in stock exchange filing said that it will buyback up to 10 crore shares for not more than Rs 250 per share around 6.56 per cent of its total shares. The scrip of HPCL was traded 5.97 per cent up at Rs 197.45 at around 9.37 am, while the benchmark index, Sensex traded 1.32 per cent higher at 41,150.
On Wednesday, HPCL posted more than double of its net profit for the September quarter, due to the surge in refining margins and inventory gains. Its net profit stood at Rs 2,477 crore as on 30 September, 2020, against Rs 1,052 crore in the same period a year-ago. 
The company’s revenue during the quarter was lower at Rs 61,340 crore as compared to Rs 66,165 crore in the previous year quarter. It earned $5.11 on turning every barrel of crude oil into fuel in the September quarter, compared to its gross refining margin of $2.83 a barrel.