Recent Price Movement and Market Context
On 5 December 2025, Confidence Petroleum India’s share price touched Rs.36.13, its lowest level in the past year. This decline comes after the stock recorded a cumulative return loss of 5.02% over the last three trading sessions. The day’s performance showed a decrease of 1.28%, underperforming the gas sector by 0.48%. The stock is currently trading below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages, signalling a sustained downward trend.
In contrast, the broader market index, Sensex, opened lower at 85,125.48 points, down 139.84 points or 0.16%, and was trading marginally down by 0.09% at 85,187.26 points during the same period. The Sensex remains close to its 52-week high of 86,159.02, just 1.14% away, and is supported by bullish moving averages with the 50-day moving average positioned above the 200-day moving average.
Long-Term Performance Comparison
Over the past year, Confidence Petroleum India’s stock has shown a return of -53.64%, significantly lagging behind the Sensex’s 4.18% gain during the same period. The stock’s 52-week high was Rs.84, indicating a substantial reduction in market value. This underperformance extends beyond the last year, with the stock also trailing the BSE500 index over the last three years, one year, and three months.
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Shareholding and Market Capitalisation Insights
Despite Confidence Petroleum India’s considerable size within the gas sector, domestic mutual funds hold no stake in the company. This absence of mutual fund participation may reflect a cautious stance regarding the stock’s valuation or business fundamentals. The company’s market capitalisation grade is noted as 3, indicating a mid-tier market cap classification.
Financial Health and Growth Metrics
Confidence Petroleum India demonstrates a capacity to service its debt obligations, with a Debt to EBITDA ratio of 1.31 times, which is relatively low and suggests manageable leverage. The company’s net sales have shown a compound annual growth rate of 36.39%, while operating profit has grown at an annual rate of 33.45%, indicating robust top-line and operating performance over the longer term.
In the latest six-month period, net sales reached Rs.2,095 crore, reflecting a growth rate of 37.50%. Profit after tax (PAT) for the same period stood at Rs.40.49 crore, with a growth rate of 23.63%. These figures highlight positive earnings momentum despite the stock’s price decline.
Valuation and Profitability Considerations
The company’s return on capital employed (ROCE) is recorded at 7.8%, which, combined with an enterprise value to capital employed ratio of 0.9, suggests an attractive valuation relative to capital utilisation. The stock is trading at a discount compared to the average historical valuations of its peers in the gas sector.
Over the past year, while the stock price has declined by 53.64%, the company’s profits have increased by 33.4%, resulting in a price-to-earnings-to-growth (PEG) ratio of 0.5. This divergence between earnings growth and stock price performance indicates a complex market assessment of the company’s prospects.
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Summary of Current Market Position
Confidence Petroleum India’s stock price decline to Rs.36.13 represents a significant technical milestone, marking the lowest price point in the last 52 weeks. The stock’s performance contrasts with the broader market’s relative stability and the Sensex’s proximity to its own 52-week high. The company’s financial data reveals a mixed picture, with solid sales and profit growth alongside subdued market valuation and limited institutional ownership.
Trading below all major moving averages, the stock reflects a cautious market sentiment. However, the company’s ability to maintain positive earnings growth and manage debt levels provides a foundation for its ongoing operations within the gas sector.
Conclusion
Confidence Petroleum India’s recent stock price movement to a 52-week low underscores the challenges faced by the company in aligning market valuation with its financial performance. While the stock has experienced notable declines, the underlying financial metrics indicate continued growth in sales and profits. The divergence between market price and earnings growth highlights the complexity of the current market assessment of the company’s position within the gas industry.
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