Dolly Khanna made a fresh purchase in this oil refinery stock; do you own it?

Dolly Khanna made a fresh purchase in this oil refinery stock; do you own it?

by 5paisa Research Team Last Updated: 2022-07-07T12:20:54+05:30

Dolly Khanna has bought a 3.27% stake in the company.

Dolly Khanna is known for her under-the-radar picks that tend to outperform the markets. She has been investing in the stock market since 1996. She currently holds 27 stocks worth Rs 657 crore. She generally invests in more traditional businesses like textile, manufacturing, refineries, etc.

Her husband Rajiv Khanna helps her to manage her portfolio. Both have high credibility in the market. Many investors keep an eye on which new stock Dolly Khanna has added to her portfolio. According to recent June filings, Dolly Khanna made a fresh position in Chennai Petroleum Corporation Limited. She bought a 3.27% stake in the company.

Chennai Petroleum Corporation Limited is involved in the business of refining crude oil to produce & supply a variety of crude derivative products and manufactures and sells additives of lubricating oil. The company is a subsidiary of the Indian Oil Corporation (IOC) Group, and it benefits significantly from IOC’s imported crude oil sourcing and product offtake.

The company’s performance is heavily dependent on global crude prices, import duty differentials, and foreign exchange rates.

The company reported excellent Q4 FY22 results. The revenue was recorded at Rs 16414 crore, a staggering 88% YOY increase. The net profit was also more than 4x from Rs 333 crore in March 2021 to Rs 1367 crore in March 2022. This significant increase in its results was contributed by high crude prices in the international markets.

Talking about recent big negative news for the stock, last week, the Indian government imposed an export tax on petrol, diesel, and a Windfall tax on domestic crude oil production. Since the announcement, the stock has fallen more than 12%.

On July 7, at 11:40 am, the shares of Chennai Petroleum are trading at Rs 270 with 0.17% gain for the day. The company has a market capitalization of Rs 4,055 crore and is trading at 3x PE.


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