Share price of one of India’s largest LPG-CNG companies, hit a new 52-week high on Monday at Rs. 120.0. The stock moved up by 11 percent to close at Rs. 115.05 on February 19th, after the company announced alliances with Norway-listed BW LPG.
With a market cap of Rs. 3,281.13 crore, shares of Confidence Petroleum India Ltd. opened at Rs. 110.0 on February 19th, compared to its previous close of Rs. 103.65.
The company has delivered positive returns of over 33.8 percent in the last six months, whereas nearly 76.2 percent in the last one year. So far in 2024, it has given positive returns of around 29.5 percent.
According to the recent filings on stock exchanges, Confidence Petroleum India Ltd. (CPIL) formed a strategic alliance with Norway-listed BW LPG, a leading LPG shipping & LPG trading company, to strengthen LPG terminal infrastructure and downstream operations across India.
This newly formed joint venture between BW LPG and CPIL is called ‘BW Confidence Enterprise Private Limited’ (BW Confidence) in India, to explore investment opportunities in onshore LPG import infrastructures.
The joint venture (JV) has already started its first project at JNPT, Mumbai with Ganesh Benzoplast (GBL) to develop one of India’s largest cryogenic LPG storage facilities, with plans for future expansion to support LPG supply in India.
The JV will work with BW LPG’s trading division and India subsidiary, BW Product Services and BW LPG India respectively, to source and deliver LPG from the international market to fulfil Confidence’s and India’s growing LPG import needs.
Previously, BW LPG invested ~Rs. 249.03 crores in CPIL through a preferential allotment of equity shares, supporting CPIL to grow its capacity in LPG downstream assets.
Confidence expects significant future growth by expanding its present 68+ LPG bottling plant infrastructure to 100 and adding 500 Auto LPG Dispensing Stations along with 200 CNG Stations over the course of three years. With these additions, CPIL expects to generate a revenue of Rs. 10,000 crores over the next three years.
This strategic investment & infrastructure development will generate 5000+ small & medium-sized businesses through retail expansion, as well as direct and indirect job opportunities for over 50,000 people.
In terms of financials, the revenue from operations of CPIL decreased by 13.3% from Rs. 639 crore in Q2 FY23-24 to Rs. 554 crore in Q3 FY23-24, accompanied by a decrease in net profit by 13% to Rs. 27 crore in Q3 FY23-24 from Rs. 31 crore in Q2 FY23-24.
CPIL is India’s largest private sector LPG bottling company, operating 68+ bottling plants and boasting a network of 250+ Auto LPG dispensing stations nationwide. The company retails packaged gas under its brand “Go Gas” and operates through a network of over 2000 dealers.
Written by Shivani Singh
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