CPCL hits over four-year excessive; zooms 164% in 7 weeks on strong earnings

Shares of Chennai Petroleum Corporation Limited (CPCL) hit an over four-year excessive of Rs 343.60, and have been frozen on the 5 per cent higher circuit on the BSE in Friday’s intra-day commerce. The stock has zoomed over 150 per cent in the previous one-and-half month on the again of strong earnings. It trades at its highest stage since April 2018, the earlier report excessive was Rs 490 in November 2007.

Since April 1, in seven weeks, the stock of state-owned refineries & advertising company has surged 164 per cent, as in comparison with a 8 per cent decline in the S&P BSE Sensex. Till 09:34 am, a mixed round 550,000 fairness shares had modified arms and there have been pending purchase orders for 290,000 shares on the NSE and BSE.

CPCL operates in downstream petroleum sector. It produces an array of value-added petroleum merchandise.

In Q4FY22, CPCL reported four-fold leap in its consolidated web revenue at Rs 1,002 crore as towards Rs 242 crore in Q4FY21. Revenue from operations jumped 43 per cent year on year (YoY) to Rs 20,997 crore from Rs 14,705 crore in earlier year quarter.

For the complete monetary year 2021-22 (FY22), CPCL consolidated web revenue jumped 426 per cent YoY to Rs 1,352 crore from Rs 257 crore in FY21. Revenue grew 43 per cent YoY to Rs 60,074 crore.

Meanwhile, on April 28, 2022, investor Dolly Khanna purchased 1 million fairness shares representing 0.67 per cent stake of CPCL price of Rs 26.31 crore via open market buy on the NSE. Dolly Khanna bought shares at worth of Rs 263.15, the majority deal information exhibits. The title of the vendor was not ascertained instantly.

The company plans to increase its refining capability which is able to enhance its earnings in the long run. The company has already obtained approval from the NITI Aayog for implementation of the CBR. Considering the strategic significance of CPCL’s refinery in the southern India, growth plan and strong promoter again floor, analyst at Kotak Securities imagine the monetary efficiency to enhance in the long run.

The anticipated demand for extra crude oil will present a possibility to speculate in new refining amenities and requires big funding in the longer term. In order to fulfill the anticipated rising vitality wants in India, particularly in the State of Tamilnadu and in different states, CPCL is planning to arrange a 9.0 MMTPA refinery at Nagapattinam in Cauvery Basin in Tamilnadu, the company’s FY21 annual report acknowledged.

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