Dolly Khanna's PSU Stock with Single-Digit PE and High ROE Set for Record High Dividend—Record Date Approaching
Shares of the company have been top performers in the Nifty 500 index. They have gained every month this year except for May, when they dropped by 10 per cent.
On Tuesday, shares of Chennai Petroleum Corporation Ltd. (CPCL), a subsidiary of Indian Oil Corporation Ltd., surged by up to 16 per cent, reaching an all-time high of Rs 1,265. This rise is in anticipation of the company's upcoming dividend, with the record date set for Friday, July 19.
In April, company announced a final dividend of Rs 55 per share, double the Rs 27 per share from the previous year. Shareholders must have CPCL shares in their portfolio by July 19 to be eligible for this dividend. The total dividend payout will be Rs 819 crore, which is nearly 30 per cent of CPCL's annual net profit of Rs 2,711 crore.
Chennai Petroleum Corporation shares have been top performers in the Nifty 500 index. They have gained every month this year except for May, when they dropped by 10 per cent. In July, the stock has increased by 26 per cent, making it the best month for CPCL this year.
Founded in 1965 as Madras Refineries Ltd., CPCL was initially a joint venture between the Government of India, National Iranian Oil Co. (NIOC), and American Oil Co. (a subsidiary of Standard Oil Co.). In 2001, Indian Oil Corporation Ltd. (IOCL) bought the government's equity stake for Rs 510 crore. In 2003, NIOC transferred its stake to its affiliate, Naftiran Intertrade Co. Ltd. (NICL). IOCL now holds a 51.89% stake in CPCL, with NICL owning 15.40%. The rest is held by financial institutions, corporate bodies, and the public.
Prominent investor Dolly Khanna holds a 1.09 per cent stake in the company. Notably, CPCL trades at a low PE ratio of 6.85x. The company has shown strong profit growth, with a 71.2 per cent CAGR over the last five years.
Disclaimer: The article is for informational purposes only and not investment advice.