Hindustan Oil Exploration Company (HOEC), India’s first private oil and gas company, has stunned market observers with its performance of late. Despite other oil and gas firms struggling, there has been a sharp surge in the counter to Rs 90 in August from Rs 30 in March.
Considering the un-remunerative gas prices in India and internationally, the stock has piqued the interests of observers, with a number of theories doing the rounds in trade circles.
Fundamentally, the parameters that are usually used for such a purpose indicate the company is not on a strong footing.
The return to shareholders has been dismal – the last dividend was declared in 2010-11 while the company has an unpredictable bottomline.