A company with a ‘fundamentally strong’ nature showcases a certain set of characteristics such as consistent and improving financial performance, lower leverage ratios, and many more.
Listed below is one such fundamentally strong stock in which Foreign Institutional Investors (FIIs) hold a considerable stake:
Chennai Petroleum Corporation Limited
With a market capitalization of Rs 9,355.36 crores, the stocks of Chennai Petroleum Corporation Limited are currently trading at Rs 628.25, slipping around 3.40 percent as compared to the previous closing levels of Rs 650 apiece.
During the recent financial years, the company posted an increase in its prime business indicators such as operating revenues as well as after-tax profits.
The former saw an upward movement from Rs 43,375.38 crores during FY21-22 to Rs 76,734.7 crores during FY22-23, and, the latter, keeping the timeframe the same, moved up from Rs 1,352.03 crores to Rs 3,531.53 crores.
As a result of the above, the company’s basic profitability ratios such as the return on equity (RoE) as well as the return on capital employed (RoCE) increased with the former moving up from 59.17 percent during FY21-22 to 74.65 percent during FY22-23, and, the latter, during the same period, shifting from 19.65 percent to 44.83 percent.
Mrs. Dolly Khanna, one of the well-known ace investors based in India, holds a stake in the PSU company. She took an entry into the company’s stock in June 2022 and, currently, as per the September 2023 quarter, holds 24.12 lakh equity shares equating to a 1.62 percent stake.
According to the latest shareholding pattern data for the quarter ended September 2023, the company’s Promoters hold a 67.29 percent stake, and the Public (retail) investors hold a 19.58 percent stake in the company.
In addition, the Foreign Institutional Investors (FIIs) have consistently increased their in the past few quarters from 4.66 percent during Q2FY22-23 and moving up to 11.37 percent in Q2FY23-24.
Chennai Petroleum Corporation Limited is engaged in the business of manufacturing as well as supplying petrol products in India. The company’s product portfolio includes motor spirit, liquefied petroleum gas (LPG), high-speed diesel, superior kerosene oil, fuel oil, hexane, and petrochemical feedstocks.
Written by Amit Madnani
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