The shares of Chennai Petroleum Corporation Ltd (CPCL) have given a return of 215.39% this year in 2022, moving from a price of ₹103.30 at the start of the year to the current price of ₹350.80. If an investor would have invested ₹1,00,000 in the shares of the company at the beginning of this year, the value of their holdings would have been ₹3,15,390 today.
After continuously moving up for the last six sessions, the shares of CCPL hit a lower circuit on Monday. It opened at ₹345 apiece before diving to ₹325.80 apiece, at a 5% lower circuit. But despite this, the stock has already more than doubled the shareholder’s investment this year.
Previously, ace investor Dolly Khanna bought 1 million shares of the company via open market purchase on the NSE on 28 April 2022. As per the bulk deal data, Khanna purchased the shares at the price of ₹263.15. Though, the seller’s name was not immediately clear.
The share has given multi-bagger returns of a whopping 215.39% in the year-to-date period. In the past month, the share price has risen from ₹232.45 to ₹325.80, giving a return of 40.16%. Further, this stock has increased from ₹113.95 to ₹211.85 apiece in the past six months, giving a return of 185.91%.
Chennai Petroleum Corporation Limited is a subsidiary of Indian Oil Corporation Limited. The company’s current market capitalization stands at ₹4,856 crores. Its net profits showed an increasing trend since the June quarter in 2021. The company posted a massive increase of 189.56% in its profit from ₹ 546 Cr in the December quarter to ₹ 1,581 Cr in the March quarter.
Another reason favoring the company is the rise in the amount of Crude throughput from 2.639 MMT to 2.906 MMT by 10.12% from Q4 2021 to Q4 2022. As against the average gross refining margin (GRM) of $6.40 per barrel in the previous year, the average GRM stood at $14.18 per barrel for Q4FY22, which is an increase of 121.56% on a YoY basis.
