BSE:500110

Stock Analysis Report

NOT FOR DISTRIBUTION
Header cover image

Chennai Petroleum

Executive Summary

Chennai Petroleum Corporation Limited produces and sells petroleum products in India.


Snowflake Analysis

Overvalued with weak fundamentals.

Share Price & News

How has Chennai Petroleum's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 500110's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-5.6%

500110

0.9%

IN Oil and Gas

-1.1%

IN Market


1 Year Return

-60.5%

500110

8.5%

IN Oil and Gas

-7.5%

IN Market

Return vs Industry: 500110 underperformed the Indian Oil and Gas industry which returned 8.5% over the past year.

Return vs Market: 500110 underperformed the Indian Market which returned -7.5% over the past year.


Shareholder returns

500110IndustryMarket
7 Day-5.6%0.9%-1.1%
30 Day11.9%9.2%6.9%
90 Day10.5%36.9%16.9%
1 Year-60.5%-60.5%13.0%8.5%-5.7%-7.5%
3 Year-77.5%-79.9%40.9%26.5%-1.1%-5.7%
5 Year-51.7%-57.4%78.4%46.4%24.2%14.5%

Price Volatility Vs. Market

How volatile is Chennai Petroleum's share price compared to the market and industry in the last 5 years?


Simply Wall St News

2 years ago | Simply Wall St

Best Undervalued Energy Stocks To Buy

2 years ago | Simply Wall St

Best Undervalued Energy Stocks To Buy

2 years ago | Simply Wall St

Best Undervalued Energy Stocks To Buy

Valuation

Is Chennai Petroleum undervalued compared to its fair value and its price relative to the market?

0.84x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: Insufficient data to calculate 500110's fair value to establish if it is undervalued.

Significantly Below Fair Value: Insufficient data to calculate 500110's fair value to establish if it is undervalued.


Price To Earnings Ratio

PE vs Industry: 500110 is unprofitable, so we can't compare its PE Ratio to the IN Oil and Gas industry average.

PE vs Market: 500110 is unprofitable, so we can't compare its PE Ratio to the Indian market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 500110's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 500110 is good value based on its PB Ratio (0.8x) compared to the IN Oil and Gas industry average (1x).


Next Steps

Future Growth

How is Chennai Petroleum forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

21.4%

Forecasted Energy industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Chennai Petroleum has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Next Steps

Past Performance

How has Chennai Petroleum performed over the past 5 years?

-40.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 500110 is currently unprofitable.

Growing Profit Margin: 500110 is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: 500110 is unprofitable, and losses have increased over the past 5 years at a rate of 40.2% per year.

Accelerating Growth: Unable to compare 500110's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: 500110 is unprofitable, making it difficult to compare its past year earnings growth to the Oil and Gas industry (-12.3%).


Return on Equity

High ROE: 500110 has a negative Return on Equity (-151.29%), as it is currently unprofitable.


Next Steps

Financial Health

How is Chennai Petroleum's financial position?


Financial Position Analysis

Short Term Liabilities: 500110's short term assets (₹28.6B) do not cover its short term liabilities (₹84.0B).

Long Term Liabilities: 500110's short term assets (₹28.6B) do not cover its long term liabilities (₹30.7B).


Debt to Equity History and Analysis

Debt Level: 500110's debt to equity ratio (638.2%) is considered high.

Reducing Debt: 500110's debt to equity ratio has increased from 308.9% to 638.2% over the past 5 years.


Balance Sheet


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: 500110 has less than a year of cash runway based on its current free cash flow.

Forecast Cash Runway: 500110 has less than a year of cash runway if free cash flow continues to reduce at historical rates of 35.3% each year


Next Steps

Dividend

What is Chennai Petroleum current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

Notable Dividend: Unable to evaluate 500110's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate 500110's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if 500110's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if 500110's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: 500110 is not paying a notable dividend for the Indian market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of 500110's dividend in 3 years as they are not forecast to pay a notable one for the Indian market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

2.6yrs

Average management tenure


CEO

S. Pandey

2.42yrs

Tenure

₹5,900,000

Compensation

Mr. S. N. Pandey has been Managing Director and Director of Chennai Petroleum Corporation Limited since February 1, 2018. Previously Mr. Pandey served as an Executive Director of Optimisation for Corporate ...


CEO Compensation Analysis

Compensation vs Market: S.'s total compensation ($USD78.53K) is below average for companies of similar size in the Indian market ($USD328.34K).

Compensation vs Earnings: S.'s compensation has increased whilst the company is unprofitable.


Leadership Team

NamePositionTenureCompensationOwnership
S. Pandey
MD & Director2.42yrs₹5.90mno data
P. Shankar
Company Secretary & Compliance Officer 6.83yrs₹5.50mno data
R. Srikanthan
Director of Technical & Director1.92yrs₹6.93m0.000070% 8.1k
Rajeev Ailawadi
Director of Finance & Director2.17yrs₹4.50mno data
M. Raghunathan
Chief General Manager of Finance1.67yrsno datano data
B. Panneerselvam
Chief General Manager of Operations2.58yrsno datano data
K Venkatesan
Chief General Manager of Technicalno datano datano data
K. Ravi C.
Deputy General Manager of Corporate Communications & Public Information Officerno datano datano data
M. Sankaranarayanan
Chief General Manager of Human Resources & Legalno datano datano data
Perin Rao
Director of Ministry of Petroleum & Natural Gas and Director2.67yrsno datano data
P. Subrahmanyam
Chief General Manager of Corporate Planning2.58yrsno datano data
Tarlana Kamaraju
Chief General Manager of Logisticsno datano datano data

2.6yrs

Average Tenure

57yo

Average Age

Experienced Management: 500110's management team is considered experienced (2.6 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
S. Pandey
MD & Director2.42yrs₹5.90mno data
R. Srikanthan
Director of Technical & Director1.92yrs₹6.93m0.000070% 8.1k
Rajeev Ailawadi
Director of Finance & Director2.17yrs₹4.50mno data
Perin Rao
Director of Ministry of Petroleum & Natural Gas and Director2.67yrsno datano data
Myneni Rao
Non-Official Independent Director1yrno datano data
Amitabh Mathur
Non-Official Independent Director1yrno datano data
Shrikant Vaidya
Director0.92yrno datano data
Mohammad Dakhili
Part-Time Non-Executive Director3.5yrsno datano data
D. Duraiganesan
Independent Director1.92yrs₹190.00kno data
Babak Bagherpour
Part-Time Non-Executive Director1.33yrsno datano data
Sobha Surendran
Independent Director0.75yrno datano data

1.9yrs

Average Tenure

57yo

Average Age

Experienced Board: 500110's board of directors are not considered experienced ( 1.9 years average tenure), which suggests a new board.


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Chennai Petroleum Corporation Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Chennai Petroleum Corporation Limited
  • Ticker: 500110
  • Exchange: BSE
  • Founded: 1965
  • Industry: Oil and Gas Refining and Marketing
  • Sector: Energy
  • Market Cap: ₹11.600b
  • Shares outstanding: 148.91m
  • Website: https://www.cpcl.co.in

Number of Employees


Location

  • Chennai Petroleum Corporation Limited
  • No. 536, Anna Salai
  • Teynampet
  • Chennai
  • Tamil Nadu
  • 600018
  • India

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
500110BSE (Mumbai Stock Exchange)YesEquity SharesININRJul 1997
CHENNPETRONSEI (National Stock Exchange of India)YesEquity SharesININRJul 1997

Biography

Chennai Petroleum Corporation Limited produces and sells petroleum products in India. Its principal products include liquefied petroleum gas, motor spirit, superior kerosene oil, aviation turbine fuel, high speed diesel, naphtha, bitumen, lube base stocks, paraffin wax, fuel oil, hexane, and petrochemical feed stocks. The company also provides furnace oil, LSHS, and light diesel oil; and non-fertilizer naptha, light and heavy extracts, LVI spindle, propylene, polybutyne feed-stock, butane, and linear alkyl benzene feedstock. It serves roadways, railways, and airways requirement of transportation fuel, as well as the fertilizer, power, and petrochemical industries. The company was formerly known as Madras Refineries Limited and changed its name to Chennai Petroleum Corporation Limited in June 2000. The company was founded in 1965 and is based in Chennai, India. Chennai Petroleum Corporation Limited is a subsidiary of Indian Oil Corporation Limited. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/07/16 12:38
End of Day Share Price2020/07/16 00:00
Earnings2020/03/31
Annual Earnings2020/03/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.