Chennai Petroleum Corporation Hits New 52-Week High of Rs.1100

The stock recorded an intraday high of Rs.1100, marking a 3.93% rise on the day and outperforming its sector by 2.32%. This fresh peak comes amid a broader market environment where the Sensex itself has reached a new 52-week high, trading at 85,450.22 points, supported by gains in mega-cap stocks and a bullish trend above key moving averages.

Chennai Petroleum Corporation’s current trading levels are above its 5-day, 20-day, 50-day, 100-day, and 200-day moving averages, indicating sustained upward momentum across multiple timeframes. This technical strength aligns with the company’s robust financial performance over the past year.

Over the last twelve months, Chennai Petroleum Corporation has delivered a total return of 89.06%, significantly outpacing the Sensex’s 10.15% return during the same period. The stock’s 52-week low was Rs.433.2, highlighting the extent of its upward trajectory. This performance is supported by the company’s operational metrics, including a return on capital employed (ROCE) of 21.83%, which signals efficient capital utilisation within the oil sector.

Financially, the company has demonstrated healthy long-term growth with net sales expanding at an annual rate of 19.17% and operating profit growing at 27.57%. The most recent quarterly results showed a remarkable operating profit increase of 966.58%, with PBDIT reaching Rs.1,144.49 crore and operating profit to net sales ratio at 7.01%, both the highest recorded figures for the company. Profit before tax excluding other income also reached a peak of Rs.975.69 crore in the quarter.

Valuation metrics further illustrate the company’s standing, with a ROCE of 15.8 and an enterprise value to capital employed ratio of 1.7, suggesting an attractive valuation relative to peers. The stock is trading at a discount compared to the average historical valuations of its sector counterparts, reinforcing its appeal within the oil industry landscape.

Chennai Petroleum Corporation is predominantly promoter-owned, placing it among the top 1% of companies rated across a universe of 4,000 stocks. It ranks third among small-cap companies and fourteenth across the entire market, reflecting its strong market position and consistent performance.

Despite the positive momentum, the company carries a relatively high average debt-to-equity ratio of 1.77 times, which remains a factor for consideration in its capital structure. Nonetheless, the company’s ability to generate profits and maintain growth has been evident in its recent financial disclosures.

In the context of the broader market, the Sensex’s current bullish stance, supported by the 50-day moving average trading above the 200-day moving average, has provided a conducive environment for stocks like Chennai Petroleum Corporation to reach new highs. The oil sector’s performance, combined with the company’s operational and financial metrics, has contributed to this notable milestone.

Overall, Chennai Petroleum Corporation’s achievement of a new 52-week high at Rs.1100 underscores its strong market presence and the positive trends in its financial and operational data. The stock’s performance over the past year, coupled with its valuation and efficiency metrics, provides a comprehensive picture of its current standing within the oil sector.

Get 2 full years of MojoOne Premium for only Rs. 12,999. Subscribe for 1 year and we'll add another year FREE. Offer valid for a limited time. Start Saving Now →