Stock Snapshot
Price Performance
Recommendation Rationale
Favorable growth outlook supported by strategic capacity expansion and operational resilience.
Basis of our Recommendation
Chennai Petroleum is poised for growth driven by strategic projects, including the expansion of lubricant capacity and retail outlets. Management remains optimistic about maintaining high throughput levels and profitability from niche products, despite facing geopolitical and market volatility risks. The company is focused on operational efficiency and capital discipline to enhance shareholder value.
Why We Like This Stock
- Ongoing execution of INR 1,600 crore Group 2 & 3 LOBS project to enhance lubricant capacity
- Expansion into retail outlets with significant capex and licensing
- Growth in niche products expected to boost profitability
Things To Watch Out For
- Geopolitical uncertainties and crude price volatility could impact margins
- Scheduled Maintenance & Inspection may temporarily affect throughput
Key Parameters
Financial Snapshot
| Actuals | Forecast | ||||
|---|---|---|---|---|---|
| FY24 | FY25 | FY26 | FY27 | FY28 | |
| Revenue (Cr.) | 66,024 | 58,983 | 63,640 | 61,567 | 60,903 |
| Profit Before Tax (Cr.) | 3,694 | 249 | 4,162 | 3,337 | 3,300 |
| PBT Margin | 5.6% | 0.4% | 6.5% | 5.4% | 5.4% |
| Net Profit (Cr.) | 2,795 | 281 | 3,161 | 2,550 | 2,522 |
| EPS | 187.7 | 18.9 | 212.3 | 171.2 | 169.4 |
Company Overview
Show Company Profile
Chennai Petroleum Corporation Limited produces and supplies petroleum products in India. The company offers liquefied petroleum gas, naphtha, motor gasoline and spirit, kerosene, aviation turbine fuel, automotive high-speed and high flash diesel, light diesel oil, and bunker and non-bunker fuel oil. It also provides lube products, such as paving bitumen, lube oil base stocks, and extracts. In addition, the company offers paraffin wax, mineral turpentine oil, food grade and pharma grade hexane, petrochemical feedstocks, micro crystalline wax, sulphur, pet-coke, propylene, poly butene feedstock (PBFS), methyl ethyl ketone feedstock, and kerosene supply. Further, it provides asphalt, linear alkyl benzene feedstock, butene-2, lean butene, lean PBFS, furnace oil, isrosene, ISRO naphtha, propylene glycol and polyols, poly iso-butylene, NATO diesel, JP-5 fuel for fighter jets, and missile fuels. The company was formerly known as Madras Refineries Limited and changed its name to Chennai Petroleum Corporation Limited in June 2000. The company was incorporated in 1965 and is based in Chennai, India. Chennai Petroleum Corporation Limited is a subsidiary of Indian Oil Corporation Limited.