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Last Updated on: 22 November, 2024
Author: Getaka|Social: Getaka Financial Services X (Earlier Twitter) Profile Getaka Financial Services LinkedIn Logo

Confidence Petroleum India Ltd: Intrinsic Value and Fundamental Analysis

Share Price and Basic Stock Data

Last Updated: November 21, 2024, 10:19 pm

Market Cap 2,100 Cr.
Current Price 66.2
High / Low120/62.6
Stock P/E30.1
Book Value 40.6
Dividend Yield0.15 %
ROCE13.7 %
ROE10.5 %
Face Value 1.00
PEG Ratio1.86

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

View Share Price Target for Confidence Petroleum India Ltd

Competitors of Confidence Petroleum India Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
Petronet LNG Ltd 48,316 Cr. 322385/19512.3 1233.11 %26.4 %22.2 % 10.0
Mahanagar Gas Ltd 11,115 Cr. 1,1251,989/1,0189.67 5602.67 %36.6 %27.8 % 10.0
Confidence Petroleum India Ltd 2,100 Cr. 66.2120/62.630.1 40.60.15 %13.7 %10.5 % 1.00
Adani Total Gas Ltd 66,148 Cr. 6021,260/52994.2 35.60.04 %21.2 %20.5 % 1.00
Industry Average31,919.75 Cr528.8036.57189.801.49%24.48%20.25%5.50

All Competitor Stocks of Confidence Petroleum India Ltd

Quarterly Result

MonthSep 2020Dec 2020Mar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023
Sales174258338222428394384355461720673875639
Expenses148218287183367345346317405662603799550
Operating Profit26405138624937395658707689
OPM %15%16%15%17%14%12%10%11%12%8%10%9%14%
Other Income1001014014-115
Interest22212333776821
Depreciation12131516151719182020282526
Profit before tax13263422443119183136344447
Tax %22%25%26%25%25%24%25%26%26%26%28%26%34%
Net Profit10202617352415142528263331
EPS in Rs0.370.730.920.631.180.810.480.500.850.950.861.131.14

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
Sales6393162693063554976071,0051,0788631,4282,2092,741
Expenses5892752312743204565368789517421,2421,9862,422
Operating Profit50413732354171126127121186223319
OPM %8%13%14%11%10%8%12%13%12%14%13%10%12%
Other Income222-141235636513
Interest171513121112121112992254
Depreciation232522292324243051526785120
Profit before tax1243-222738906963116120157
Tax %27%37%36%-3%44%30%29%29%24%25%25%27%
Net Profit922-2315276752499093118
EPS in Rs0.280.080.08-0.890.040.191.042.441.911.743.163.274.05
Dividend Payout %0%0%0%0%0%0%5%4%0%0%3%4%

Profit & Loss Yearly Chart

YoY Net Profit Growth

Year2012-20132013-20142014-20152015-20162016-20172017-20182018-20192019-20202020-20212021-20222022-2023
YoY Net Profit Growth (%)-77.78%0.00%-1250.00%104.35%400.00%440.00%148.15%-22.39%-5.77%83.67%3.33%
Change in YoY Net Profit Growth (%)0.00%77.78%-1250.00%1354.35%295.65%40.00%-291.85%-170.54%16.62%89.44%-80.34%

Confidence Petroleum India 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:26%
5 Years:22%
3 Years:46%
TTM:-7%
Compounded Profit Growth
10 Years:49%
5 Years:9%
3 Years:27%
TTM:-34%
Stock Price CAGR
10 Years:38%
5 Years:20%
3 Years:-5%
1 Year:-28%
Return on Equity
10 Years:11%
5 Years:12%
3 Years:12%
Last Year:10%

Last Updated: Unknown

Balance Sheet

Last Updated: November 15, 2024, 1:30 am

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Sep 2024
Equity Capital26262626262627272828283233
Reserves2122151871881562273654195056667461,1271,256
Borrowings856862581128277738897412638759
Other Liabilities90989791113141151186168259453406416
Total Liabilities4134073723634074766207057891,0501,6402,2022,464
Fixed Assets2292261831801992433563784565547081,0101,043
CWIP871515292320391963372344
Investments788810132981229303536
Other Assets1691661661601701972152813024058641,1341,341
Total Assets4134073723634074766207057891,0501,6402,2022,464

Reserves and Borrowings Chart

Cash Flow

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Cash from Operating Activity +393130353065686698103-125263
Cash from Investing Activity +-14-19-13-22-108-24-152-93-142-169-204-375
Cash from Financing Activity +-27-12-13-1675-3387254269330222
Net Cash Flow-2-05-2-484-1-331110

Free Cash Flow

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Free Cash Flow50.00-44.00-31.00-30.00-23.00-71.00-11.0049.0054.0033.0089.00-189.00

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 Days778874574537212628172121
Inventory Days9612095795550383344376136
Days Payable627960432923111146289
Cash Conversion Cycle111129109937164484868495448
Working Capital Days92117108927357495876596670
ROCE %5%5%2%4%6%15%24%16%12%17%13%14%

Financial Efficiency Indicators Chart

Share Holding Pattern

MonthSep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024
Promoters57.96%58.95%59.53%59.70%60.07%60.26%61.45%61.32%61.32%61.63%56.12%55.89%
FIIs6.57%6.27%5.97%4.33%3.34%2.89%2.73%1.94%2.23%2.13%2.08%1.94%
DIIs0.00%0.00%0.00%0.00%0.00%0.74%0.92%1.23%1.26%1.25%1.19%0.52%
Public35.47%34.78%34.51%35.97%36.58%36.10%34.89%35.53%35.21%35.00%40.62%41.65%
No. of Shareholders62,77568,42774,80577,14172,22567,93767,07166,82372,78880,7531,06,8911,15,818

Shareholding Pattern Chart

No. of Shareholders

Mutual Fund Holdings

Fund NameNo of SharesAUM (%)Amount Invested (Cr)Previous Number of SharesPrevious DatePercentage Change
Quant Small Cap Fund2,614,0000.2522.552,614,0002024-11-200%
Motilal Oswal Nifty Microcap 250 Index Fund89,5930.20.772,614,0002024-11-20-96.57%

ROCE Trend

EPS Trend

Key Financial Ratios

MonthMar 24Mar 23Mar 22Mar 21Mar 20
FaceValue1.001.001.001.001.00
Basic EPS (Rs.)3.503.273.161.731.91
Diluted EPS (Rs.)3.503.273.161.731.85
Cash EPS (Rs.)8.296.105.433.513.74
Book Value[Excl.RevalReserv]/Share (Rs.)36.8931.0826.8419.1516.75
Book Value[Incl.RevalReserv]/Share (Rs.)37.2231.4527.2119.5217.13
Revenue From Operations / Share (Rs.)84.9977.7850.2730.3939.36
PBDIT / Share (Rs.)11.798.006.784.364.78
PBIT / Share (Rs.)6.745.004.422.522.91
PBT / Share (Rs.)4.424.224.102.222.49
Net Profit / Share (Rs.)3.243.103.081.671.87
NP After MI And SOA / Share (Rs.)3.193.173.091.731.91
PBDIT Margin (%)13.8710.2813.4714.3412.14
PBIT Margin (%)7.936.438.808.307.39
PBT Margin (%)5.195.438.157.306.31
Net Profit Margin (%)3.813.996.135.494.74
NP After MI And SOA Margin (%)3.754.066.155.684.86
Return on Networth / Equity (%)8.6511.1912.839.3811.98
Return on Capital Employeed (%)12.7410.4213.019.7712.59
Return On Assets (%)4.605.478.366.227.43
Long Term Debt / Equity (X)0.170.350.060.090.07
Total Debt / Equity (X)0.360.500.120.150.16
Asset Turnover Ratio (%)1.401.641.591.111.59
Current Ratio (X)2.012.843.463.923.15
Quick Ratio (X)1.621.792.142.532.12
Inventory Turnover Ratio (X)0.741.023.511.152.54
Dividend Payout Ratio (NP) (%)3.164.200.000.000.00
Dividend Payout Ratio (CP) (%)1.222.160.000.000.00
Earning Retention Ratio (%)96.8495.800.000.000.00
Cash Earning Retention Ratio (%)98.7897.840.000.000.00
Interest Coverage Ratio (X)5.0710.2620.7114.3811.28
Interest Coverage Ratio (Post Tax) (X)2.404.9810.436.515.40
Enterprise Value (Cr.)2919.952136.521917.841353.99473.79
EV / Net Operating Revenue (X)1.080.961.341.570.43
EV / EBITDA (X)7.809.409.9710.933.62
MarketCap / Net Operating Revenue (X)0.980.781.241.470.37
Retention Ratios (%)96.8395.790.000.000.00
Price / BV (X)2.282.152.592.430.92
Price / Net Operating Revenue (X)0.980.781.241.470.37
EarningsYield0.030.050.040.030.13

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value of Confidence Petroleum India Ltd as of November 22, 2024 is: 128.51

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 22, 2024, Confidence Petroleum India Ltd is Undervalued by 94.12% compared to the current share price 66.20

Intrinsic Value of Confidence Petroleum India Ltd as of November 22, 2024 is: 149.36

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 22, 2024, Confidence Petroleum India Ltd is Undervalued by 125.62% compared to the current share price 66.20

Last 5 Year EPS CAGR: 16.22%

*Investments are subject to market risks

Strength and Weakness

StrengthWeakness
  1. The company has higher reserves (482.23 cr) compared to borrowings (200.85 cr), indicating strong financial stability.
  2. The company has shown consistent growth in sales (296.85 cr) and profit (50.69 cr) over the years.
  1. The stock has a low average ROCE of 11.08%, which may not be favorable.
  2. The stock has a high average Working Capital Days of 76.42, which may not be favorable.
  3. The stock has a high average Cash Conversion Cycle of 74.33, which may not be favorable.

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 Confidence Petroleum India Ltd:
    1. Net Profit Margin: 3.81%
      • 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: 12.74% (Industry Average ROCE: 24.48%)
      • 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%: 8.65% (Industry Average ROE: 20.25%)
      • 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): 2.4
      • 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: 1.62
      • 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: 30.1 (Industry average Stock P/E: 36.57)
      • 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: 0.36
      • 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

Confidence Petroleum India Ltd. is a Public Limited Listed company incorporated on 21/07/1994 and has its registered office in the State of Maharashtra, India. Company’s Corporate Identification Number(CIN) is L40200MH1994PLC079766 and registration number is 079766. Currently company belongs to the Industry of LPG Bottling/Distribution. Company’s Total Operating Revenue is Rs. 1277.97 Cr. and Equity Capital is Rs. 28.40 Cr. for the Year ended 31/03/2022.
INDUSTRYADDRESSCONTACT
LPG/CNG/PNG/LNG Bottling/Distribution7O1, Shivai Plaza Premises Chs Ltd, Mumbai Maharashtra 400059cs@confidencegroup.co
http://www.confidencegroup.co
Management
NamePosition Held
Mr. Nitin KharaChairman & Managing Director
Mr. Elesh KharaExecutive Director & CFO
Mr. Simon Charles HillNon Executive Director
Mrs. Vandana GuptaInd. Non-Executive Director
Mr. Vaibhav Pradeep DedhiaInd. Non-Executive Director
Mrs. Mansi DeogirkarInd. Non-Executive Director
Mr. Sumant SutariaInd. Non-Executive Director

FAQ

What is the latest intrinsic value of Confidence Petroleum India Ltd?

The latest intrinsic value of Confidence Petroleum India Ltd as on 21 November 2024 is ₹128.51, which is 94.12% higher than the current market price of ₹66.20.

What is the Market Cap of Confidence Petroleum India Ltd?

The Market Cap of Confidence Petroleum India Ltd is 2,100 Cr..

What is the current Stock Price of Confidence Petroleum India Ltd as on 21 November 2024?

The current stock price of Confidence Petroleum India Ltd as on 21 November 2024 is ₹66.2.

What is the High / Low of Confidence Petroleum India Ltd stocks in FY 2024?

In FY 2024, the High / Low of Confidence Petroleum India Ltd stocks is 120/62.6.

What is the Stock P/E of Confidence Petroleum India Ltd?

The Stock P/E of Confidence Petroleum India Ltd is 30.1.

What is the Book Value of Confidence Petroleum India Ltd?

The Book Value of Confidence Petroleum India Ltd is 40.6.

What is the Dividend Yield of Confidence Petroleum India Ltd?

The Dividend Yield of Confidence Petroleum India Ltd is 0.15 %.

What is the ROCE of Confidence Petroleum India Ltd?

The ROCE of Confidence Petroleum India Ltd is 13.7 %.

What is the ROE of Confidence Petroleum India Ltd?

The ROE of Confidence Petroleum India Ltd is 10.5 %.

What is the Face Value of Confidence Petroleum India Ltd?

The Face Value of Confidence Petroleum India Ltd is 1.00.

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 Confidence Petroleum India 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