Check Before You Invest : Chennai Petroleum Corporation Ltd

Q: Which industry/sub-sector does Chennai Petroleum Corporation Ltd belong to?

Chennai Petroleum Corporation Ltd belongs to the Oil & Gas sector, operating specifically within the Refineries segment.

Q: Is Chennai Petroleum Corporation Ltd a good quality company?

Chennai Petroleum Corporation Ltd is a average quality company, based on a somewhat consistent multi-year financial track record. This assessment is based on company’s performance on Revenue growth, ROCE, Equity and Assets, key margin ratios, cash conversion cycle, and debt to cash flow from operations and how it compares with its long term averages.

Q: Is Chennai Petroleum Corporation Ltd undervalued or overvalued?

Chennai Petroleum Corporation Ltd appears Fair, as its key valuation ratios are in line with their past averages. Based on the industry it operates in, the relevant valuation ratios include one of the following, P/E, P/BV, P/Sales, EV/EBITDA or a combination of two or more. Valuation Ratios. Price to Earnings, Current: 4.92, Historic Median: 4.40. Price to Book, Current: 1.39, Historic Median: 1.25. Price to Sales, Current: 0.19, Historic Median: 0.10. EV to EBITDA, Current: 3.25, Historic Median: 4.50

Q: Is Chennai Petroleum Corporation Ltd a good buy now?

Chennai Petroleum Corporation Ltd is a neutral opportunity now, based on stable price trend analysis suggesting prices may move sideways. However, you need to check its quality and valuation before making a decision

Q: Revenue growth of Chennai Petroleum Corporation Ltd?

Chennai Petroleum Corporation Ltd revenue growth is -10.6% for FY-2025, which is below its 5-year CAGR of 9.81%, indicating slower growth.

Q: Gross Profit margin of Chennai Petroleum Corporation Ltd?

Chennai Petroleum Corporation Ltd Gross profit margin which is the profit after deduction of direct costs, is 1.1% for FY-2025, which is below its 5-year median of 4.2%, indicating decreasing margins.

Q: Operating Profit Margin of Chennai Petroleum Corporation Ltd?

Chennai Petroleum Corporation Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 1.82% for FY-2025, which is below its 5-year median of 6.85% indicating decreasing margins.

Q: Net Profit Margin of Chennai Petroleum Corporation Ltd?

Chennai Petroleum Corporation Ltd Net Profit Margin is 0.29% for FY-2025, is below its 5-year median of 3.09%, indicating decreasing margins. Profitability Metrics. Gross Profit Margin (%), Current: 1.1, Historic Median: 4.2. Operating Profit Margin (%), Current: 1.82, Historic Median: 6.85. Net Profit Margin (%), Current: 0.29, Historic Median: 3.09

Q: Return on Asset of Chennai Petroleum Corporation Ltd?

Chennai Petroleum Corporation Ltd Return on Asset is 0.94%, which is below its 5-year historical median of 8.31%, indicating deteriorated asset utilization efficiency.

Q: Return on capital employed (ROCE) of Chennai Petroleum Corporation Ltd?

Chennai Petroleum Corporation Ltd Return on capital employed is 4.04% for FY-2025, which is below its 5-year historical median of 19.9%. The current ROCE is below its estimated weighted average cost of capital (WACC) of 13.5%, indicating value preservation.

Check Before You Invest : Chennai Petroleum Corporation Ltd

BSE: 500110 NSE: CHENNPETRO ISIN: INE178A01016

| Sector: Oil & Gas | Industry: Refineries

Snapshot

Q.1 Which industry/sub-sector does Chennai Petroleum Corporation Ltd belong to?

Chennai Petroleum Corporation Ltd belongs to the Oil & Gas sector, operating specifically within the Refineries segment.

Q.2 Is Chennai Petroleum Corporation Ltd a good quality company?

Chennai Petroleum Corporation Ltd is a average quality company, based on a somewhat consistent multi-year financial track record.

This assessment is based on company’s performance on Revenue growth, ROCE, Equity and Assets, key margin ratios, cash conversion cycle, and debt to cash flow from operations and how it compares with its long term averages.

Q.3 Is Chennai Petroleum Corporation Ltd undervalued or overvalued?

Chennai Petroleum Corporation Ltd appears Fair, as its key valuation ratios are in line with their past averages.

Based on the industry it operates in, the relevant valuation ratios include one of the following, P/E, P/BV, P/Sales, EV/EBITDA or a combination of two or more.

Valuation Ratios	Current	5-year Historic Median
Price to Earnings	4.92	4.40
Price to Book	1.39	1.25
Price to Sales	0.19	0.10
EV to EBITDA	3.25	4.50

Q.4 Is Chennai Petroleum Corporation Ltd a good buy now?

Chennai Petroleum Corporation Ltd is a neutral opportunity now, based on stable price trend analysis suggesting prices may move sideways. However, you need to check its quality and valuation before making a decision

Performance Analysis

We have analysed the performance of the company on the following:

How has it performed on generating Profits?
By checking its Revenue growth, Gross, Operating and Net Margins compared to its last 5-year median.
How efficiently has it utilized Capital?
By checking its ROCE, ROA, ROE and its Cash Conversion Cycle.
How is it managing its Debt?
By checking its Debt to Equity and Cash Flow from Operations.

A: What are the trends in revenue and profit margins?

Q.1 Revenue growth of Chennai Petroleum Corporation Ltd?

Chennai Petroleum Corporation Ltd revenue growth is -10.6% for FY-2025, which is below its 5-year CAGR of 9.81%, indicating slower growth.

Q.2 Gross Profit margin of Chennai Petroleum Corporation Ltd?

Chennai Petroleum Corporation Ltd Gross profit margin which is the profit after deduction of direct costs, is 1.1% for FY-2025, which is below its 5-year median of 4.2%, indicating decreasing margins.

Q.3 Operating Profit Margin of Chennai Petroleum Corporation Ltd?

Chennai Petroleum Corporation Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 1.82% for FY-2025, which is below its 5-year median of 6.85% indicating decreasing margins.

Q.4 Net Profit Margin of Chennai Petroleum Corporation Ltd?

Chennai Petroleum Corporation Ltd Net Profit Margin is 0.29% for FY-2025, is below its 5-year median of 3.09%, indicating decreasing margins.

	Current Level	5-year Historic Median
Gross Profit Margin (%)	1.1	4.2
Operating Profit Margin (%)	1.82	6.85
Net Profit Margin (%)	0.29	3.09

B: Does the business utilize capital efficiently?

Q.5 Return on Asset of Chennai Petroleum Corporation Ltd?

Chennai Petroleum Corporation Ltd Return on Asset is 0.94%, which is below its 5-year historical median of 8.31%, indicating deteriorated asset utilization efficiency.

Q.6 Return on capital employed (ROCE) of Chennai Petroleum Corporation Ltd?

Chennai Petroleum Corporation Ltd Return on capital employed is 4.04% for FY-2025, which is below its 5-year historical median of 19.9%. The current ROCE is below its estimated weighted average cost of capital (WACC) of 13.5%, indicating value preservation.

Q.7 Return on Equity (ROE) of Chennai Petroleum Corporation Ltd?

Chennai Petroleum Corporation Ltd Return on equity is 2.1% for FY-2025, which is below its 5-year historical median of 36.46%, indicating the business is making worse use of its shareholders capital.

Q.8 Cash conversion cycle of Chennai Petroleum Corporation Ltd?

Chennai Petroleum Corporation Ltd Cash conversion cycle is 15 days, above its 5-year historical median of 12 days, indicating deteriorated working capital management. However, you need to compare this with its peers in the industry.

	Current Level	5-year Historic Median
Asset Turnover (x)	3.85	3.85
ROE (%)	2.1	36.46
ROCE (%)	4.04	19.9
Cash Conversion Cycle	15 days	12 days

C: How much debt does the business have and is it at a sustainable level?

Q.9 Debt to Equity ratio of Chennai Petroleum Corporation Ltd?

Chennai Petroleum Corporation Ltd Debt-to-Equity ratio is 0.39, which is lower the industry average of 0.67, indicating lower debt levels in the industry.

Q.10 Debt to cash flow from operations of Chennai Petroleum Corporation Ltd?

Chennai Petroleum Corporation Ltd Debt to cash flow from operations is 2.29, which is at a moderate level.

Ownership & governance

D: Promoter shareholding and pledge status of Chennai Petroleum Corporation Ltd?

Q.1 Promoter shareholding and pledge status of Chennai Petroleum Corporation Ltd?

Promoters hold 67.29% of the Chennai Petroleum Corporation Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

E: How does Chennai Petroleum Corporation Ltd performance compare with that of its Peers?

Q.1 Revenue growth of Chennai Petroleum Corporation Ltd vs industry peers?

Chennai Petroleum Corporation Ltd revenue CAGR is 9.81%, compared to the industry median CAGR of 13.17%, indicating slower growth and losing its market share.

Profit Metrics

	Current Level	5-year Industry Median
Revenue Growth (%)	-10.6	13.2
Gross Profit Growth (%)	-80.9	25
Operating Profit Growth (%)	-77.3	16.8
Net Profit Growth (%)	-93.6	26.1

Operating Efficiency

	Current Level	5-year Industry Median
Asset Turnover (x)	3.85	2.83
ROE (%)	2.1	30.98
ROCE (%)	4.04	19.9
Cash Conversion Cycle (days)	14.97	12

Valuation & price assessment

Q.1 Stock return of Chennai Petroleum Corporation Ltd over the last decade?

Over the last 9 year(s), the stock has delivered a CAGR of 17.3% based on the current price.

	9Y	5Y	3Y	1Y
Share Price CAGR	17.3%	51%	42.8%	48%

Q.2 Valuation ratios of Chennai Petroleum Corporation Ltd vs historical?

The current P/E ratio of 4.92 is higher than its historical median of 4.40, indicating that the stock is trading above its historical average valuation.

Q.3 How do the current valuation ratios compare with 5-year historical median and industry numbers?

Valuation Ratios	Current	5-year Historic Median	5-year Industry Median
Price to Earnings	4.92	4.40	6.19
Price to Book	1.39	1.25	1.60
Price to Sales	0.19	0.10	0.20
EV to EBITDA	3.25	4.50	5.42

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Check Before You Invest : Chennai Petroleum Corporation Ltd

Snapshot

Performance Analysis

Ownership & governance

Peer comparison (industry-wise, mcap)

Profit Metrics

Operating Efficiency

Valuation & price assessment

Check more companies

Check trending companies

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