This Small Cap Refineries Stock Has Given Multibagger YTD Return Of 221%

Shares of Chennai Petroleum Corporation in trade on May 19, 2022 have hit a fresh 52-week high of Rs. 329.45. This is even as the broader markets witnessed sell-off on the back of global meltdown in equities due to lingering inflationary and global central banks' hawkish take. On a year to date (YTD) basis, the stock.

How share price of Chennai Petroleum have moved on a YTD and monthly basis?

On a year to date (YTD) basis, the stock has yielded mind-boggling returns to the tune of 221%, while its 1-month return stand at 67.4%. This is even as Nifty on a YTD basis has come down by over 8.5%, while in a month's time has collapsed by over 6%.

 

Why such exorbitant gains on the stock of Chennai Petroleum?

There is a view by the IEA that amid the Ukraine-Russia crisis there shall be a drag on the refining throughput by about 1.1 mnbopd. So, in the current scenario, until the supply concerns recede, there will prevail high refining margin situation. As it is in the Q4 period, Singapore GRMs or gross refining margins soared to 4-year high of $7.8 per barrel. Further this high gross refining margin situation augurs well for standalone refining companies that are not into marketing like Chennai Petroleum.

Also, besides the Q4 quarter, the ongoing quarter i.e. Q1Fy23 looks promising for these refining majors.

Recent financials:

In the latest March ended quarter, the company's revenues have almost doubled YoY to Rs. 16,413 crore. Net profit at the refining company also went higher substantially YoY from Rs. 231.79 crore in March 2021 to Rs. 994.42 crore in the March ended quarter of Fy22.

Celebrated investor Dolly Khanna buys into the scrip

Last month, celebrated investor Dolly Khanna bought into the shares of Chennai Petroleum - 10 lakh shares in a bulk deal for a price of Rs. 263.15 and valuing the deal at Rs. 26.31 crore.