Chennai Petroleum Corporation Ltd: Fundamental Analysis, Share Price Insights & Intrinsic Value (2024)

Share Price and Basic Stock Data

Last Updated: December 24, 2024, 8:52 pm

Market Cap	8,862 Cr.
Current Price	595
High / Low	1,275/563
Stock P/E	12.9
Book Value	502
Dividend Yield	9.24 %
ROCE	35.4 %
ROE	36.5 %
Face Value	10.0
PEG Ratio	0.55

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

Stock P/E Current Price Intrinsic Value

View Share Price Target for Chennai Petroleum Corporation Ltd

Competitors of

Stock Name	Market Cap	Current Price	High / Low	Stock P/E	Book Value	Dividend Yield	ROCE	ROE	Face Value
Reliance Industries Ltd – Share Price and Detail Financial Report	16,54,941 Cr.	1,223	1,609/1,202	24.4	606	0.41 %	9.61 %	9.25 %	10.0
Mangalore Refinery & Petrochemicals Ltd	26,081 Cr.	149	289/128	28.6	70.1	2.02 %	25.8 %	32.0 %	10.0
Indian Oil Corporation Ltd	1,95,226 Cr.	138	197/124	11.4	128	8.68 %	21.1 %	25.7 %	10.0
Hindustan Petroleum Corporation Ltd	87,771 Cr.	413	457/245	20.9	216	5.09 %	21.3 %	40.4 %	10.0
Chennai Petroleum Corporation Ltd	8,862 Cr.	595	1,275/563	12.9	502	9.24 %	35.4 %	36.5 %	10.0
Industry Average	349,927.50 Cr	468.33		17.94	283.35	5.44%	24.22%	30.96%	10.00

All Competitor Stocks of

Quarterly Result

Month	Sep 2021	Dec 2021	Mar 2022	Jun 2022	Sep 2022	Dec 2022	Mar 2023	Jun 2023	Sep 2023	Dec 2023	Mar 2024	Jun 2024	Sep 2024
Sales	8,856	9,939	16,414	23,163	19,509	16,054	18,009	14,745	16,545	17,376	17,720	17,095	12,087
Expenses	8,550	9,393	14,826	19,756	19,279	15,620	16,382	13,795	14,740	16,696	16,678	16,432	12,761
Operating Profit	306	546	1,588	3,407	230	434	1,627	950	1,804	680	1,042	663	-675
OPM %	3%	5%	10%	15%	1%	3%	9%	6%	11%	4%	6%	4%	-6%
Other Income	8	1	6	2	10	2	2	2	5	2	3	4	23
Interest	103	113	96	76	61	108	84	57	65	50	51	48	52
Depreciation	122	132	132	133	143	141	157	147	157	151	151	150	153
Profit before tax	89	301	1,367	3,199	36	186	1,388	747	1,588	481	844	470	-857
Tax %	27%	24%	27%	26%	21%	23%	28%	27%	25%	25%	27%	27%	-27%
Net Profit	65	229	994	2,359	28	143	1,004	548	1,191	360	612	343	-629
EPS in Rs	4.40	15.37	66.78	158.40	1.87	9.60	67.44	36.82	79.95	24.17	41.12	23.01	-42.27

Last Updated: December 16, 2024, 1:20 pm

Quarterly Chart

Profit & Loss - Annual Report

Last Updated: December 16, 2024, 1:20 pm

Month	Mar 2013	Mar 2014	Mar 2015	Mar 2016	Mar 2017	Mar 2018	Mar 2019	Mar 2020	Mar 2021	Mar 2022	Mar 2023	Mar 2024	TTM
Sales	42,883	49,131	41,637	25,716	27,522	32,369	41,113	36,973	22,222	43,068	76,271	66,024	64,278
Expenses	43,743	48,544	41,779	24,367	25,645	30,288	40,595	39,076	20,209	40,336	70,574	61,548	62,568
Operating Profit	-860	587	-142	1,349	1,877	2,082	518	-2,103	2,014	2,732	5,698	4,476	1,710
OPM %	-2%	1%	-0%	5%	7%	6%	1%	-6%	9%	6%	7%	7%	3%
Other Income	15	40	30	36	40	39	59	24	107	16	15	13	33
Interest	478	569	405	353	274	322	421	415	376	413	331	224	200
Depreciation	375	390	226	274	279	340	453	523	467	504	573	606	606
Profit before tax	-1,698	-331	-742	759	1,365	1,458	-298	-3,016	1,277	1,832	4,809	3,660	937
Tax %	4%	-8%	-95%	2%	25%	37%	-28%	-31%	81%	27%	27%	26%
Net Profit	-1,767	-304	-39	742	1,030	913	-213	-2,078	238	1,342	3,534	2,711	685
EPS in Rs	-118.65	-20.40	-2.62	49.82	69.15	61.31	-14.33	-139.52	15.95	90.15	237.31	182.07	46.03
Dividend Payout %	-0%	-0%	-0%	8%	30%	30%	-0%	-0%	-0%	2%	11%	30%

Profit & Loss Yearly Chart

YoY Net Profit Growth

Year	2013-2014	2014-2015	2015-2016	2016-2017	2017-2018	2018-2019	2019-2020	2020-2021	2021-2022	2022-2023	2023-2024
YoY Net Profit Growth (%)	82.80%	87.17%	2002.56%	38.81%	-11.36%	-123.33%	-875.59%	111.45%	463.87%	163.34%	-23.29%
Change in YoY Net Profit Growth (%)	0.00%	4.38%	1915.39%	-1963.75%	-50.17%	-111.97%	-752.26%	987.04%	352.41%	-300.53%	-186.63%

Chennai Petroleum Corporation Ltd has shown an inconsistent trend in YoY Net Profit Growth (%) in the last 11 years from 2013-2014 to 2023-2024.

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:	24%
5 Years:	39%
3 Years:	81%
1 Year:	-13%

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

Month	Mar 2013	Mar 2014	Mar 2015	Mar 2016	Mar 2017	Mar 2018	Mar 2019	Mar 2020	Mar 2021	Mar 2022	Mar 2023	Mar 2024	Sep 2024
Equity Capital	149	149	149	149	149	149	149	149	149	149	149	149	149
Reserves	1,877	1,573	1,506	2,212	3,165	3,707	3,161	1,043	1,276	2,641	6,132	8,444	7,331
Borrowings	5,905	5,600	5,399	4,567	5,501	4,491	6,668	8,698	9,167	9,238	4,260	2,786	6,114
Other Liabilities	6,189	6,644	3,929	3,430	2,681	5,851	3,978	2,779	3,487	5,298	5,345	6,768	3,882
Total Liabilities	14,121	13,966	10,983	10,358	11,496	14,198	13,955	12,669	14,078	17,327	15,885	18,147	17,476
Fixed Assets	4,568	4,292	4,077	4,119	3,883	5,914	6,977	7,034	7,142	6,967	7,637	7,506	7,426
CWIP	173	344	782	1,679	2,763	1,410	1,199	1,598	1,550	1,210	331	210	219
Investments	24	25	25	12	12	12	12	12	12	12	12	12	12
Other Assets	9,355	9,305	6,098	4,547	4,838	6,863	5,767	4,025	5,374	9,139	7,905	10,419	9,819
Total Assets	14,121	13,966	10,983	10,358	11,496	14,198	13,955	12,669	14,078	17,327	15,885	18,147	17,476

Reserves and Borrowings Chart

Cash Flow

Month	Mar 2013	Mar 2014	Mar 2015	Mar 2016	Mar 2017	Mar 2018	Mar 2019	Mar 2020	Mar 2021	Mar 2022	Mar 2023	Mar 2024
Cash from Operating Activity +	-1,350	1,141	1,078	2,292	609	2,757	-145	-621	452	1,026	5,749	2,694
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	-1,152	561	-1,788	1,418	1,584	97	-343	-5,354	-2,106
Net Cash Flow	2	5	-6	-1	0	-0	0	-0	1	7	-7	-1

Free Cash Flow

Month	Mar 2013	Mar 2014	Mar 2015	Mar 2016	Mar 2017	Mar 2018	Mar 2019	Mar 2020	Mar 2021	Mar 2022	Mar 2023	Mar 2024
Free Cash Flow	-865.00	582.00	-147.00	-3.00	-4.00	-2.00	512.00	-10.00	-7.00	-7.00	1.00	2.00

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

Month	Mar 2013	Mar 2014	Mar 2015	Mar 2016	Mar 2017	Mar 2018	Mar 2019	Mar 2020	Mar 2021	Mar 2022	Mar 2023	Mar 2024
Debtor Days	22	17	16	11	14	18	3	1	3	2	1	3
Inventory Days	55	52	34	50	48	60	45	23	87	71	32	48
Days Payable	40	40	29	39	25	56	23	15	36	30	16	26
Cash Conversion Cycle	36	28	21	22	37	22	25	9	54	43	17	24
Working Capital Days	31	23	9	14	29	-3	14	2	31	36	11	17
ROCE %	-16%	3%	-5%	16%	21%	21%	1%	-26%	16%	20%	46%	35%

Financial Efficiency Indicators Chart

Share Holding Pattern

Month	Dec 2021	Mar 2022	Jun 2022	Sep 2022	Dec 2022	Mar 2023	Jun 2023	Sep 2023	Dec 2023	Mar 2024	Jun 2024	Sep 2024
Promoters	67.29%	67.29%	67.29%	67.29%	67.29%	67.29%	67.29%	67.29%	67.29%	67.29%	67.29%	67.29%
FIIs	2.67%	3.37%	4.01%	4.66%	5.07%	7.67%	8.49%	11.37%	14.70%	15.86%	15.77%	16.17%
DIIs	5.85%	5.36%	2.67%	3.29%	3.25%	3.40%	1.97%	1.76%	1.24%	0.75%	0.79%	0.30%
Government	0.00%	0.00%	0.00%	0.00%	0.00%	0.01%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%
Public	24.20%	23.98%	26.03%	24.76%	24.40%	21.63%	22.25%	19.59%	16.78%	16.11%	16.14%	16.25%
No. of Shareholders	86,694	82,407	94,373	1,07,400	1,08,330	1,01,135	98,284	1,01,030	99,496	1,06,619	1,17,204	1,42,073

Shareholding Pattern Chart

No. of Shareholders

Mutual Fund Holdings

Fund Name	No of Shares	AUM (%)	Amount Invested (Cr)	Previous Number of Shares	Previous Date	Percentage Change
ICICI Prudential Commodities Fund	403,610	1.55	20.59	39,558	2024-12-24	920.3%
ICICI Prudential PSU Equity Fund	250,088	0.81	12.76	39,558	2024-12-24	532.21%
ITI Mid Cap Fund	93,575	0.89	4.77	39,558	2024-12-24	136.55%
Taurus Flexi Cap Fund	67,127	1.2	3.43	39,558	2024-12-24	69.69%
Motilal Oswal Nifty Microcap 250 Index Fund	39,558	0.52	2.02	39,558	2024-12-24	0%
ICICI Prudential Retirement Fund - Hybrid Conservative	6,200	0.59	0.32	39,558	2024-12-24	-84.33%

ROCE Trend

EPS Trend

Key Financial Ratios

Month	Mar 24	Mar 23	Mar 22	Mar 21	Mar 20
FaceValue	10.00	10.00	10.00	10.00	10.00
Basic EPS (Rs.)	184.34	237.16	90.80	17.28	-138.10
Diluted EPS (Rs.)	184.34	237.16	90.80	17.28	-138.10
Cash EPS (Rs.)	222.56	275.29	123.59	46.84	-104.82
Book Value[Excl.RevalReserv]/Share (Rs.)	592.37	434.83	200.57	108.20	91.28
Book Value[Incl.RevalReserv]/Share (Rs.)	592.37	434.83	200.57	108.20	91.28
Revenue From Operations / Share (Rs.)	4458.11	5153.09	2912.86	1507.27	2492.56
PBDIT / Share (Rs.)	301.26	383.08	184.14	141.80	-140.09
PBIT / Share (Rs.)	260.59	344.57	150.30	110.52	-175.19
PBT / Share (Rs.)	245.60	322.39	122.60	85.33	-202.94
Net Profit / Share (Rs.)	181.89	236.78	89.75	15.56	-139.91
NP After MI And SOA / Share (Rs.)	184.34	237.16	90.80	17.28	-138.10
PBDIT Margin (%)	6.75	7.43	6.32	9.40	-5.62
PBIT Margin (%)	5.84	6.68	5.15	7.33	-7.02
PBT Margin (%)	5.50	6.25	4.20	5.66	-8.14
Net Profit Margin (%)	4.08	4.59	3.08	1.03	-5.61
NP After MI And SOA Margin (%)	4.13	4.60	3.11	1.14	-5.54
Return on Networth / Equity (%)	31.11	54.54	45.26	15.96	-151.28
Return on Capital Employeed (%)	35.20	54.27	36.75	33.83	-58.84
Return On Assets (%)	14.97	22.02	7.68	1.80	-16.02
Long Term Debt / Equity (X)	0.09	0.25	0.63	1.50	1.75
Total Debt / Equity (X)	0.25	0.57	2.92	5.00	5.97
Asset Turnover Ratio (%)	3.86	4.59	2.74	1.67	2.64
Current Ratio (X)	1.38	1.16	0.77	0.54	0.34
Quick Ratio (X)	0.30	0.25	0.11	0.05	0.05
Inventory Turnover Ratio (X)	8.75	9.95	6.65	5.78	9.93
Dividend Payout Ratio (NP) (%)	14.64	0.00	0.00	0.00	0.00
Dividend Payout Ratio (CP) (%)	11.99	0.00	0.00	0.00	0.00
Earning Retention Ratio (%)	85.36	0.00	0.00	0.00	0.00
Cash Earning Retention Ratio (%)	88.01	0.00	0.00	0.00	0.00
Interest Coverage Ratio (X)	20.09	17.28	6.65	5.63	-5.05
Interest Coverage Ratio (Post Tax) (X)	13.13	11.68	4.24	1.62	-4.04
Enterprise Value (Cr.)	16168.43	7769.39	11112.28	10154.40	9584.11
EV / Net Operating Revenue (X)	0.24	0.10	0.25	0.45	0.25
EV / EBITDA (X)	3.60	1.36	4.05	4.81	-4.59
MarketCap / Net Operating Revenue (X)	0.20	0.04	0.04	0.06	0.02
Retention Ratios (%)	85.35	0.00	0.00	0.00	0.00
Price / BV (X)	1.53	0.54	0.63	0.92	0.66
Price / Net Operating Revenue (X)	0.20	0.04	0.04	0.06	0.02
EarningsYield	0.20	0.99	0.71	0.17	-2.28

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value of Chennai Petroleum Corporation Ltd as of December 26, 2024 is: 2,582.07

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 December 26, 2024, Chennai Petroleum Corporation Ltd is Undervalued by 333.96% compared to the current share price 595.00

Intrinsic Value of Chennai Petroleum Corporation Ltd as of December 26, 2024 is: 3,191.71

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 December 26, 2024, Chennai Petroleum Corporation Ltd is Undervalued by 436.42% compared to the current share price 595.00

Last 5 Year EPS CAGR: 23.61%

*Investments are subject to market risks

Strength and Weakness

Strength	Weakness
The stock has a low average Working Capital Days of 17.83, which is a positive sign. The company has shown consistent growth in sales (43.38 cr) and profit (25.54 cr) over the years.	The stock has a low average ROCE of 11.00%, which may not be favorable. The stock has a high average Cash Conversion Cycle of 28.17, which may not be favorable. The company has higher borrowings (6,030.31) compared to reserves (3,389.85), which may suggest financial risk.

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: 12.9 (Industry average Stock P/E: 17.94)
  - 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.

INDUSTRY	ADDRESS	CONTACT
Refineries	536, Anna Salai, Teynampet, Chennai (Madras) Tamil Nadu 600018	investors@cpcl.co.in https://cpcl.co.in

Management
Name	Position Held
Mr. Shrikant Madhav Vaidya	Non Executive Chairman
Mr. Arvind Kumar	Managing Director
Mr. Rohit Kumar Agrawala	Director - Finance
Mr. P Kannan	Director - Operations
Mr. H Shankar	Director - Technical
Mr. Ravi Kumar Rungta	Independent Director
Dr. C K Shivanna	Independent Director
Mr. Deepak Srivastava	Nominee Director
Mr. Babak Bagherpour	Nominee Director
Mr. Inder Jeet	Nominee Director
Mr. M B Dakhili	Nominee Director
Mr. Subhajit Sarkar	Nominee Director

FAQ

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

The latest intrinsic value of Chennai Petroleum Corporation Ltd as on 26 December 2024 is ₹2582.07, which is 333.96% higher than the current market price of ₹595.00. The stock has a market capitalization of 8,862 Cr. and recorded a high/low of 1,275/563 during the current fiscal year 2024-2025. As of Sep 2024, the company has reserves of ₹7,331 Cr and total liabilities of ₹17,476 Cr.

What is the Market Cap of Chennai Petroleum Corporation Ltd?

The Market Cap of Chennai Petroleum Corporation Ltd is 8,862 Cr..

What is the current Stock Price of Chennai Petroleum Corporation Ltd as on 26 December 2024?

The current stock price of Chennai Petroleum Corporation Ltd as on 26 December 2024 is 595.

What is the High / Low of Chennai Petroleum Corporation Ltd stocks in FY 2024-2025?

In FY 2024-2025, the High / Low of Chennai Petroleum Corporation Ltd stocks is 1,275/563.

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

The Stock P/E of Chennai Petroleum Corporation Ltd is 12.9.

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 9.24 %.

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.