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Last Updated on: 24 November, 2024
Author: Getaka|Social: Getaka Financial Services X (Earlier Twitter) Profile Getaka Financial Services LinkedIn Logo

Chennai Petroleum Corporation Ltd: Intrinsic Value and Fundamental Analysis

Share Price and Basic Stock Data

Last Updated: November 22, 2024, 11:26 pm

Market Cap 8,693 Cr.
Current Price 583
High / Low1,275/565
Stock P/E12.7
Book Value 502
Dividend Yield9.43 %
ROCE35.4 %
ROE36.5 %
Face Value 10.0
PEG Ratio0.06

Stock P/E, Current Price, and Intrinsic Value Over Time

View Share Price Target for Chennai Petroleum Corporation Ltd

Competitors of Chennai Petroleum Corporation Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
Reliance Industries Ltd – Share Price and Detail Financial Report 17,12,106 Cr. 1,2651,609/1,18525.2 6060.40 %9.61 %9.25 % 10.0
Mangalore Refinery & Petrochemicals Ltd 27,560 Cr. 157289/11430.2 70.11.91 %25.8 %32.0 % 10.0
Indian Oil Corporation Ltd 1,87,204 Cr. 133197/10311.0 1289.05 %21.1 %25.7 % 10.0
Hindustan Petroleum Corporation Ltd 76,697 Cr. 361457/21018.3 2165.82 %21.3 %40.4 % 10.0
Chennai Petroleum Corporation Ltd 8,693 Cr. 5831,275/56512.7 5029.43 %35.4 %36.5 % 10.0
Industry Average356,046.00 Cr464.1717.78283.355.66%24.22%30.96%10.00

All Competitor Stocks of Chennai Petroleum Corporation Ltd

Quarterly Result

MonthDec 2020Mar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023
Sales5,8928,7378,1668,8569,93916,41423,16319,50916,05418,00914,74516,54517,376
Expenses5,6818,2157,8758,5509,39314,82619,75619,27915,62016,38213,79514,74016,696
Operating Profit2105222913065461,5883,4072304341,6279501,804680
OPM %4%6%4%3%5%10%15%1%3%9%6%11%4%
Other Income3329281621022252
Interest779510010311396766110884576550
Depreciation113123119122132132133143141157147157151
Profit before tax5333374893011,3673,199361861,3887471,588481
Tax %1,152%30%27%27%24%27%26%21%23%28%27%25%25%
Net Profit-55623254652299942,359281431,0045481,191360
EPS in Rs-37.3715.573.614.4015.3766.78158.401.879.6067.4436.8279.9524.17

Last Updated: Unknown

Quarterly Chart

Profit & Loss - Annual Report

Last Updated: Unknown

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023TTM
Sales40,62742,88349,13141,63725,71627,52232,36941,11336,97322,22243,06876,27165,353
Expenses40,23543,74348,54441,77924,36725,64530,28840,59539,07620,20940,33670,57460,538
Operating Profit393-860587-1421,3491,8772,082518-2,1032,0142,7325,6984,815
OPM %1%-2%1%-0%5%7%6%1%-6%9%6%7%7%
Other Income641540303640395924107161511
Interest250478569405353274322421415376413331315
Depreciation365375390226274279340453523467504573602
Profit before tax-158-1,698-331-7427591,3651,458-298-3,0161,2771,8324,8093,909
Tax %139%-4%8%95%2%25%37%28%31%81%27%27%
Net Profit62-1,767-304-397421,030913-213-2,0782381,3423,5342,886
EPS in Rs4.15-118.65-20.40-2.6249.8269.1561.31-14.33-139.5215.9590.15237.31193.81
Dividend Payout %48%0%0%0%8%30%30%0%0%0%2%11%

Profit & Loss Yearly Chart

YoY Net Profit Growth

Year2012-20132013-20142014-20152015-20162016-20172017-20182018-20192019-20202020-20212021-20222022-2023
YoY Net Profit Growth (%)-2950.00%82.80%87.17%2002.56%38.81%-11.36%-123.33%-875.59%111.45%463.87%163.34%
Change in YoY Net Profit Growth (%)0.00%3032.80%4.38%1915.39%-1963.75%-50.17%-111.97%-752.26%987.04%352.41%-300.53%

Chennai Petroleum Corporation Ltd has shown an inconsistent trend in YoY Net Profit Growth (%) in the last 11 years from 2012-2013 to 2022-2023.

Growth

Compounded Sales Growth
10 Years:3%
5 Years:10%
3 Years:44%
TTM:-2%
Compounded Profit Growth
10 Years:27%
5 Years:71%
3 Years:125%
TTM:-76%
Stock Price CAGR
10 Years:21%
5 Years:35%
3 Years:72%
1 Year:-3%
Return on Equity
10 Years:26%
5 Years:33%
3 Years:54%
Last Year:36%

Last Updated: Unknown

Balance Sheet

Last Updated: November 15, 2024, 1:31 am

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Sep 2024
Equity Capital149149149149149149149149149149149149149
Reserves1,8771,5731,5062,2123,1653,7073,1611,0431,2762,6416,1328,4447,331
Borrowings5,9055,6005,3994,5675,5014,4916,6688,6989,1679,2384,2602,7866,114
Other Liabilities6,1896,6443,9293,4302,6815,8513,9782,7793,4875,2985,3456,7683,882
Total Liabilities14,12113,96610,98310,35811,49614,19813,95512,66914,07817,32715,88518,14717,476
Fixed Assets4,5684,2924,0774,1193,8835,9146,9777,0347,1426,9677,6377,5067,426
CWIP1733447821,6792,7631,4101,1991,5981,5501,210331210219
Investments24252512121212121212121212
Other Assets9,3559,3056,0984,5474,8386,8635,7674,0255,3749,1397,90510,4199,819
Total Assets14,12113,96610,98310,35811,49614,19813,95512,66914,07817,32715,88518,14717,476

Reserves and Borrowings Chart

Cash Flow

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Cash from Operating Activity +-1,3501,1411,0782,2926092,757-145-6214521,0265,7492,694
Cash from Investing Activity +-393-279-477-1,142-1,169-969-1,273-963-548-676-403-589
Cash from Financing Activity +1,746-856-608-1,152561-1,7881,4181,58497-343-5,354-2,106
Net Cash Flow25-6-10-00-017-7-1

Free Cash Flow

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Free Cash Flow393.00-865.00582.00-147.00-3.00-4.00-2.00512.00-10.00-7.00-7.001.00

Free Cash Flow = Income Generated from Operational Activities - Borrowings - Capital Work in Progress (CWIP)

Consistent positive free cash flow is crucial for businesses as it indicates their ability to generate cash from their core operations. It provides financial flexibility, allowing companies to invest in growth opportunities, pay dividends to shareholders, reduce debt, and weather economic downturns more effectively.

Free Cash Flow Chart

Financial Efficiency Indicators

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Debtor Days221716111418313213
Inventory Days555234504860452387713248
Days Payable404029392556231536301626
Cash Conversion Cycle36282122372225954431724
Working Capital Days312391429-314231361117
ROCE %-16%3%-5%16%21%21%1%-26%16%20%46%35%

Financial Efficiency Indicators Chart

Share Holding Pattern

MonthSep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024
Promoters67.29%67.29%67.29%67.29%67.29%67.29%67.29%67.29%67.29%67.29%67.29%67.29%
FIIs1.33%2.67%3.37%4.01%4.66%5.07%7.67%8.49%11.37%14.70%15.86%15.77%
DIIs6.72%5.85%5.36%2.67%3.29%3.25%3.40%1.97%1.76%1.24%0.75%0.79%
Government0.00%0.00%0.00%0.00%0.00%0.00%0.01%0.00%0.00%0.00%0.00%0.00%
Public24.66%24.20%23.98%26.03%24.76%24.40%21.63%22.25%19.59%16.78%16.11%16.14%
No. of Shareholders85,86386,69482,40794,3731,07,4001,08,3301,01,13598,2841,01,03099,4961,06,6191,17,204

Shareholding Pattern Chart

No. of Shareholders

Mutual Fund Holdings

Fund NameNo of SharesAUM (%)Amount Invested (Cr)Previous Number of SharesPrevious DatePercentage Change
ICICI Prudential Commodities Fund403,6101.5520.5993,5752024-11-23331.32%
ICICI Prudential PSU Equity Fund250,0880.8112.7693,5752024-11-23167.26%
ITI Mid Cap Fund93,5750.894.7793,5752024-11-230%
Taurus Flexi Cap Fund67,1271.23.4393,5752024-11-23-28.26%
Motilal Oswal Nifty Microcap 250 Index Fund39,5580.522.0293,5752024-11-23-57.73%
ICICI Prudential Retirement Fund - Hybrid Conservative6,2000.590.3293,5752024-11-23-93.37%

ROCE Trend

EPS Trend

Key Financial Ratios

MonthMar 24Mar 23Mar 22Mar 21Mar 20
FaceValue10.0010.0010.0010.0010.00
Basic EPS (Rs.)184.34237.1690.8017.28-138.10
Diluted EPS (Rs.)184.34237.1690.8017.28-138.10
Cash EPS (Rs.)222.56275.29123.5946.84-104.82
Book Value[Excl.RevalReserv]/Share (Rs.)592.37434.83200.57108.2091.28
Book Value[Incl.RevalReserv]/Share (Rs.)592.37434.83200.57108.2091.28
Revenue From Operations / Share (Rs.)4458.115153.092912.861507.272492.56
PBDIT / Share (Rs.)301.26383.08184.14141.80-140.09
PBIT / Share (Rs.)260.59344.57150.30110.52-175.19
PBT / Share (Rs.)245.60322.39122.6085.33-202.94
Net Profit / Share (Rs.)181.89236.7889.7515.56-139.91
NP After MI And SOA / Share (Rs.)184.34237.1690.8017.28-138.10
PBDIT Margin (%)6.757.436.329.40-5.62
PBIT Margin (%)5.846.685.157.33-7.02
PBT Margin (%)5.506.254.205.66-8.14
Net Profit Margin (%)4.084.593.081.03-5.61
NP After MI And SOA Margin (%)4.134.603.111.14-5.54
Return on Networth / Equity (%)31.1154.5445.2615.96-151.28
Return on Capital Employeed (%)35.2054.2736.7533.83-58.84
Return On Assets (%)14.9722.027.681.80-16.02
Long Term Debt / Equity (X)0.090.250.631.501.75
Total Debt / Equity (X)0.250.572.925.005.97
Asset Turnover Ratio (%)3.864.592.741.672.64
Current Ratio (X)1.381.160.770.540.34
Quick Ratio (X)0.300.250.110.050.05
Inventory Turnover Ratio (X)8.759.956.655.789.93
Dividend Payout Ratio (NP) (%)14.640.000.000.000.00
Dividend Payout Ratio (CP) (%)11.990.000.000.000.00
Earning Retention Ratio (%)85.360.000.000.000.00
Cash Earning Retention Ratio (%)88.010.000.000.000.00
Interest Coverage Ratio (X)20.0917.286.655.63-5.05
Interest Coverage Ratio (Post Tax) (X)13.1311.684.241.62-4.04
Enterprise Value (Cr.)16168.437769.3911112.2810154.409584.11
EV / Net Operating Revenue (X)0.240.100.250.450.25
EV / EBITDA (X)3.601.364.054.81-4.59
MarketCap / Net Operating Revenue (X)0.200.040.040.060.02
Retention Ratios (%)85.350.000.000.000.00
Price / BV (X)1.530.540.630.920.66
Price / Net Operating Revenue (X)0.200.040.040.060.02
EarningsYield0.200.990.710.17-2.28

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value of Chennai Petroleum Corporation Ltd as of November 24, 2024 is: 2,546.46

Calculation basis:

  • Fair value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100)
  • P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
  • Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance.
  • Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
  • Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.

This formula allows us to gauge the fair value of the stock by analyzing its fundamental indicators.

As of November 24, 2024, Chennai Petroleum Corporation Ltd is Undervalued by 336.79% compared to the current share price 583.00

Intrinsic Value of Chennai Petroleum Corporation Ltd as of November 24, 2024 is: 8,142.77

Calculation basis:

  • Intrinsic value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100) * (1 + EPS CAGR for Last 5 Years)
  • P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
  • Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance.
  • Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
  • Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.
  • EPS CAGR (Compound Annual Growth Rate): Represents the geometric mean growth rate of earnings per share over the last 5 years. It provides insight into the historical growth trajectory of the company's earnings.

This formula allows us to gauge the intrinsic value of the stock by analyzing its fundamental indicators along with EPS growth.

As of November 24, 2024, Chennai Petroleum Corporation Ltd is Undervalued by 1,296.70% compared to the current share price 583.00

Last 5 Year EPS CAGR: 219.77%

*Investments are subject to market risks

Strength and Weakness

StrengthWeakness
  1. The stock has a low average Working Capital Days of 17.83, which is a positive sign.
  1. The stock has a low average ROCE of 11.00%, which may not be favorable.
  2. The stock has a high average Cash Conversion Cycle of 28.17, which may not be favorable.
  3. The company has higher borrowings (6,030.31) compared to reserves (3,389.85), which may suggest financial risk.
  4. The company has not shown consistent growth in sales (41.46) and profit (-58.69).

Stock Analysis

  • Considering all of the following key financial indicators, prospective investors are encouraged to conduct thorough research and seek professional guidance before considering any investment in Chennai Petroleum Corporation Ltd:
    1. Net Profit Margin: 4.08%
      • Net Profit Margin: This metric indicates the percentage of profit a company makes from its total revenue. A higher net profit margin is generally desirable as it reflects better profitability.
    2. ROCE: 35.2% (Industry Average ROCE: 24.22%)
      • ROCE (Return on Capital Employed): ROCE measures a company's profitability and the efficiency with which its capital is employed. A higher ROCE indicates efficient use of capital.
    3. ROE%: 31.11% (Industry Average ROE: 30.96%)
      • ROE (Return on Equity): ROE measures a company's profitability relative to shareholders' equity. A higher ROE indicates efficient use of shareholders' funds.
    4. Interest Coverage Ratio (Post Tax): 13.13
      • Interest Coverage Ratio: The interest coverage ratio measures a company's ability to cover its interest payments on outstanding debt. A ratio greater than 2 is generally considered healthy as it indicates the company can meet its interest obligations comfortably.
    5. Quick Ratio: 0.3
      • Quick Ratio: The quick ratio assesses a company's ability to cover its short-term liabilities with its most liquid assets. A ratio higher than 1 suggests the company can meet its short-term obligations without relying heavily on inventory.
    6. Stock P/E: 12.7 (Industry average Stock P/E: 17.78)
      • Stock P/E (Price-to-Earnings) Ratio: The P/E ratio compares a company's current share price to its earnings per share. A lower P/E ratio relative to industry peers or historical values may indicate that the stock is undervalued.
    7. Total Debt / Equity: 0.25
      • Total Debt / Equity: This ratio measures a company's financial leverage by comparing its total debt to its total equity. A lower ratio indicates lower financial risk and greater financial stability.
    The current analysis is available for review. It's important to conduct thorough research and consider consulting with financial professionals before making any investment decisions.
    Stock Rating:

About the Company - Qualitative Analysis

Chennai Petroleum Corporation Ltd. is a Public Limited Listed company incorporated on 30/12/1965 and has its registered office in the State of Tamil Nadu, India. Company’s Corporate Identification Number(CIN) is L40101TN1965GOI005389 and registration number is 005389. Currently Company is involved in the business activities of Manufacture of paraffin wax. Company’s Total Operating Revenue is Rs. 43375.38 Cr. and Equity Capital is Rs. 148.91 Cr. for the Year ended 31/03/2022.
INDUSTRYADDRESSCONTACT
Refineries536, Anna Salai, Teynampet, Chennai (Madras) Tamil Nadu 600018investors@cpcl.co.in
https://cpcl.co.in
Management
NamePosition Held
Mr. Shrikant Madhav VaidyaNon Executive Chairman
Mr. Arvind KumarManaging Director
Mr. Rohit Kumar AgrawalaDirector - Finance
Mr. P KannanDirector - Operations
Mr. H ShankarDirector - Technical
Mr. Ravi Kumar RungtaIndependent Director
Dr. C K ShivannaIndependent Director
Mr. Deepak SrivastavaNominee Director
Mr. Babak BagherpourNominee Director
Mr. Inder JeetNominee Director
Mr. M B DakhiliNominee Director
Mr. Subhajit SarkarNominee Director

FAQ

What is the latest intrinsic value of Chennai Petroleum Corporation Ltd?

The latest intrinsic value of Chennai Petroleum Corporation Ltd as on 24 November 2024 is ₹2546.46, which is 336.79% higher than the current market price of ₹583.00.

What is the Market Cap of Chennai Petroleum Corporation Ltd?

The Market Cap of Chennai Petroleum Corporation Ltd is 8,693 Cr..

What is the current Stock Price of Chennai Petroleum Corporation Ltd as on 24 November 2024?

The current stock price of Chennai Petroleum Corporation Ltd as on 24 November 2024 is 583.

What is the High / Low of Chennai Petroleum Corporation Ltd stocks in FY 2024?

In FY 2024, the High / Low of Chennai Petroleum Corporation Ltd stocks is 1,275/565.

What is the Stock P/E of Chennai Petroleum Corporation Ltd?

The Stock P/E of Chennai Petroleum Corporation Ltd is 12.7.

What is the Book Value of Chennai Petroleum Corporation Ltd?

The Book Value of Chennai Petroleum Corporation Ltd is 502.

What is the Dividend Yield of Chennai Petroleum Corporation Ltd?

The Dividend Yield of Chennai Petroleum Corporation Ltd is 9.43 %.

What is the ROCE of Chennai Petroleum Corporation Ltd?

The ROCE of Chennai Petroleum Corporation Ltd is 35.4 %.

What is the ROE of Chennai Petroleum Corporation Ltd?

The ROE of Chennai Petroleum Corporation Ltd is 36.5 %.

What is the Face Value of Chennai Petroleum Corporation Ltd?

The Face Value of Chennai Petroleum Corporation Ltd is 10.0.

About the Author

Author Avatar
Getaka

Getaka, CFA, a financial analyst with 15 years of experience in the industry. Getaka holds an MBA degree and the Chartered Financial Analyst designation, demonstrating his profound understanding of financial analysis and investment management. Throughout his career, he has conducted numerous financial analyses and due diligence processes for companies in the industry, and has a strong track record of identifying key trends and opportunities. He leverages his expertise to deliver a thorough financial analysis of a company, encompassing its financial performance, key ratios, future prospects, and risks. Getaka is committed to providing accurate, reliable, and trustworthy information to help readers make informed decisions about their finances and investments.

Disclaimer: This article is for informational purposes only and should not be construed as financial advice. The author is not a SEBI registered financial advisor and does not have any vested interest in Chennai Petroleum Corporation Ltd. Investors are advised to conduct their own due diligence and consult with a financial professional before making any investment decisions. The information provided in this article is based on publicly available data and the author's analysis, but it may not be comprehensive or up-to-date. The author and getaka.co.in are not responsible for any errors or omissions in the content. This article is not intended to promote any particular investment strategy or recommendation, and readers should consult with their own financial advisors before making any investment decisions. Data Source: NSE