The shares of this leading LPG solutions provider are in focus after the company has secured a long-term contract from leading PSUs worth Rs 42 crore. In this article, we will discuss more about this in detail.
With a market capitalisation of Rs 1,678 crores, the shares of Confidence Petroleum India Ltd are currently trading at Rs 50.5 per share, down by 48.73 percent from its 52-week high of Rs 98.50 per share. Over the past five years, the stock has delivered a return of 158 percent.
On Friday, the company, through a stock exchange filing, announced that the company has secured a bottling assistance contract worth Rs 42.09 crore from Bharat Petroleum Corporation Limited (BPCL), Hindustan Petroleum Corporation Limited (HPCL), and Indian Oil Corporation Limited (IOCL).
According to the company’s filing, the contracts cover LPG bottling volumes of 3 lakh cylinders for BPCL at Kollam for 10 years, 1.2 lakh cylinders for HPCL at Trivandrum for 10 years, and 90,000 cylinders for IOCL at Murbad for a three-year term.
Financial Highlights
The company reported a consolidated revenue of Rs 3,146 crores in FY25, up by 16.60 percent from its FY24 revenue of Rs 2,698 crores. However, the company reported a net profit decline of 13.33 percent to Rs 91 crore in FY25 from Rs 105 crores in FY24.
The stock delivered an ROE and ROCE of 6.87 percent and 9.48 percent, respectively, and is currently trading at a P/E of 19.52x as compared to its industry average of 22.20x.
Confidence Petroleum India Limited produces and sells LPG cylinders in India through the Cylinder Division and LPG Division. The company offers CNG and packed LPG cylinders, LPG bottling services, and operates auto LPG dispensing stations. The company targets both commercial and industrial customers and sells its products under the GoGas brand.
Written by Satyajeet Mukherjee
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