A leading petroleum products manufacturer, renowned for its diverse range of lubricants and greases, has announced ambitious expansion plans.
The company’s strategic moves include venturing into solar power projects, establishing a waste management facility in Rajasthan, and expanding its international footprint through a key acquisition—all aimed at boosting revenue to Rs. 350 crores in the coming years.
Share Price Movement
The share price of Continental Petroleums Limited hit an upper circuit of 5 percent to Rs. 113.05 per share on Thursday, an increase from its previous close of Rs. 107.70 per share. The market capitalisation now stands at approximately Rs. 62.86 crore as of January 16, 2025.
What driving price?
Following expansion plans are set to drive Continental Petroleum towards a topline of Rs. 350-400 crores, boosting profitability and positioning the company as a market leader in its targeted sectors.
Expansion Plans
Continental Petroleums Limited plans to expand its EPC projects in power transmission and solar energy, with an order book of Rs. 212 crores. It aims to bid for projects worth Rs. 175-200 crores in the upcoming months; this is to align with Rajasthan’s 90 GW renewable energy goal by 2030.
Allocation of capital to bid for solar power projects under the PM KUSUM-C Yojana, backed by 25-year PPAs with Rajasthan’s electricity departments. It aims to install 1 MW of solar capacity, aiding India’s clean energy transition.
The company will set up a 90,000 MTA Waste Mix Processing Facility in Behror, Rajasthan, serving major cement manufacturers. This initiative supports environmental sustainability by promoting waste co-processing and reducing landfill waste.
Acquisition of Unique Techno Associates Pvt Ltd. (UTAPL) will expand their operations into international markets. UTAPL’s export network to over 10 countries from its SEZ facility in Dahej, Gujarat, will drive significant topline growth for Continental Petroleum.
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Financial Highlights
In FY2024, the company’s revenue declined by 46.2%, from Rs. 98.36 crore in FY23 to Rs. 52.86 crore in FY24. Profits also decreased by 30.7%, from Rs. 3.94 crore in FY23 to Rs. 2.73 crore in FY24.
Competitors
Citgo Petroleum, MJL, APSCO, and LUKOIL Lubricants are key competitors of Continental Petroleum. Continental Petroleum is currently trading at a P/E of 13, which is lower than the industry P/E of 32.
Market Outlook
The Indian lubricants market, valued at $7.19 billion in 2023, is growing at a 4.4% CAGR through 2030. Growth is driven by the booming automotive and industrial sectors, alongside advances in synthetic and bio-based lubricants. Rising demand for high-performance, eco-friendly lubricants supports applications in automotive, manufacturing, marine, and aerospace industries. Innovations like Valvoline’s efficient engine oils boost performance across new and old vehicles.
Manufacturing industries increasingly rely on specialised lubricants for machinery, while aerospace demands products capable of withstanding extreme conditions.
Written By Fazal Ul Vahab C H
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