Here's why Chennai Petroleum Corp.'s shares zoomed 15% to reach a one-year high.
Share price of Chennai Petroleum Corp: The Indian Oil Corporation subsidiary's independent Q4 FY24 earnings was Rs 612.38 crore, up from Rs 1,004.19 crore in the same period last year. Operations revenue decreased to Rs 20,822.95 crore in the March 2024 quarter from Rs 21,350.20 crore in the same period the previous year.
In trading on Wednesday, shares of Chennai Petroleum Corporation Ltd. experienced a significant increase following the release of the company's fourth-quarter (Q4 FY24) earnings and recommendation of a final dividend. At Rs 1,067.45, the stock reached a one-year high, up 15.05 percent.
Comparing the Indian Oil Corporation subsidiary's standalone Q4 FY24 profit to the same period last year, it was Rs 612.38 crore versus Rs 1,004.19 crore. Operations revenue decreased to Rs 20,822.95 crore in the March 2024 quarter from Rs 21,350.20 crore in the same period the previous year.
Nonetheless, in Q4 FY24, the company's earnings increased 74.47% sequentially. Additionally, revenue increased QoQ (quarter over quarter) by 1.80%.
Chennai Petroleum also declared a final dividend of Rs 55 for the fiscal year 2024. The company's board of directors has recommended a final equity dividend of 550 percent for the fiscal year 2023–2024, or Rs 55/-per equity share with a face value of Rs 10/-on the paid-up share capital. This dividend is contingent upon shareholder approval at the company's upcoming annual general meeting. Following the date of declaration at the AGM, the final dividend would be paid out within 30 days. It said, "In due course, the record date for the final dividend payment would be intimated."
The counter was trading above the 5-day, 10-, 20-, 30-, 50-, 100-, 150-, and 200-day simple moving averages (SMAs) based on technical setup. The relative strength index (RSI) for the stock after 14 days was 68.18. Oversold is defined as a level below 30, and overbought is defined as a value beyond 70.
The price-to-equity (P/E) ratio of the company's shares is 4.45. The number of earnings per share (EPS) was 24.17.
Approximately 2.82 lakh shares of the scrip were traded on the BSE at the time this piece was written, indicating a high volume of activity today. The amount exceeded the 48,000 share two-week average volume.
With a market capitalization (m-cap) of Rs 15,745.89 crore, the counter had turnover of Rs 28.71 crore.
The promoters owned 67.29% of the company as of March 2024.
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