The Indian share market has witnessed high volatility in the calendar year 2022, with the BSE Sensex and the NSE Nifty falling 9% on a year-to-date (YTD) basis. Despite high volatility, some multibagger stocks have given excellent returns to its shareholders during the year so far on the back of robust earnings and strong fundamentals.
Chennai Petroleum Corporation Limited (CPCL), a subsidiary of Indian Oil Corporation, is one such stock that has given more than 230% returns this year, outperforming the benchmark indices. In the year-to-date, this smallcap oil stock has risen from ₹103 to ₹343, generating a return of 233% in this period. The PSU stock has gained nearly 50% in the past one month and 25% in the last one week only. In the last one year, the share price has surged 182%.
Continuing its gaining streak for the sixth straight session, CPCL shares opened 3.28% higher at ₹338 apiece on Friday, against previous closing price of ₹327.25 on the BSE. Post opening, the stock gained as much as 5% to hit an over four-year high of ₹343.60, in sync with broader market. The stock breached its previous record high of ₹490 in November 2007. At the time of reporting, the BSE Sensex was trading 1,125 points, or 2.1%, higher at 53,917 levels.
Technically, CPCL shares are currently in a “bullish” range, trading higher than 5-day, 20-day, 50-day, 100-day, and 200-day moving averages. Since April 1, the stock of the state-owned company zoomed 164%, in sharp contrast to a 8% decline in the BSE Sensex.
On the earnings front, CPCL posted 314% growth in its consolidated net profit to ₹1,002 crore in Q4FY22, as against ₹242 crore in the same period last year, driven by strong sales. Revenue from operations jumped 43% to ₹20,997 crore, from ₹14,705 crore in the previous corresponding quarter. For the full financial year FY22, CPCL posted a consolidated net profit of ₹1,352 crore, up 426% on yearly basis. Revenue grew 43% YoY to ₹60,074 crore.
Chennai Petroleum Corporation Limited (CPCL), formerly known as Madras Refineries Limited (MRL), was formed as a joint venture in 1965 between the Government of India (GOI), AMOCO, and National Iranian Oil Company (NIOC). At present, IOCL is a majority stakeholder in the refinery and marketing company with a 51.89% share, followed by Naftiran Intertrade Company, a Swiss-based subsidiary of NIOC, which owns 15.4% shares. Among others, mutual funds hold 5.36% shares, foreign portfolio investors by 3.37%, while the rest are owned by individual retail investors.