Shares of this small-cap gas stock jumped approximately 4 percent in Monday’s trading session after the company’s subsidiary is setting up a ‘Green Hydrogen’ Manufacturing Unit in Nagpur. In the past six months, the company’s stock has jumped nearly 35 percent.
With a market capitalization of Rs 2,744.65 crores, the stocks of Confidence Petroleum India Limited opened their trading hour on Monday at Rs 97.22 and currently trade at Rs 96.34, gaining nearly 4 percent compared to the previous closing levels of Rs 93.32 apiece.
Such bullish stock price movements were witnessed after the company, through a regulatory filing with the Bombay Stock Exchange (BSE), announced “Silversky Exim Private Limited”, a step-down subsidiary of Confidence Petroleum India Limited, is setting up a Green Hydrogen/ Type-4 Cylinder Manufacturing Unit in MIDC Butibori Nagpur.
The Type 4 cylinders are expected to play a crucial role in the efficient storage and transportation of the cylinders.
Having a look at the company’s recent financials, the prime indicators of business, viz, operating revenues as well as after-tax profits, faced a dip with the former reducing from Rs 875 crores during Q1FY24 to Rs 638 crores during Q2FY24, and the latter, in congruence, fell marginally from Rs 32 crores to Rs 30 crores.
As a result of the above, the return ratios, such as return on equity (RoE) and the return on capital employed (RoCE) fell with the former reducing from 12.83 percent during FY21-22 to 11.19 percent during FY22-23 and the latter, during the same time horizon, falling from 13.01 percent to 10.42 percent.
As per the latest shareholding data available for the December 2023 quarter, the company’s Promoters hold a 61.63 percent stake followed by the Public (retail) Investors holding a 35 percent stake in the company.
Incorporated in 1993, Confidence Petroleum India Limited is an India-based company engaged in the business of manufacturing LPG cylinders. The company provides CNG and LPG cylinders, high-pressure cylinders, LPG bottling services, and others. The company’s segments include the ‘Cylinder’ Division and ‘LPG’ Division.
Written by Amit Madnani
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