Chennai Petroleum Corporation Ltd.
NSE: CHENNPETROChennai Petroleum Corporation Ltd.: A 30-second snapshot
Chennai Petroleum Corporation Ltd (CPCL) is an IOC subsidiary refinery trading at ₹1,009 — a PE of 4.84 against a 12-month price gain of 64.94% and ROE of 32.13%. Debt-to-equity stands at 17.68, well above any non-financial peer in the Energy sector, while a 5-year revenue contraction of 2.5% sits alongside 5-year earnings growth of 202.5%, highlighting the refining-margin-driven nature of recent profitability.
P/E
4.8
Forward P/E
—
ROE
+32.1%
Debt / Equity
17.68
Profit Margin
+4.9%
Div. Yield
+1.3%
5Y ROE > 15%
3/5
5Y FCF > 0
4/5
Quality
54/100
News
8 headlines · 5 positive · 0 negative
CHENNPETRO: Net profit and refining margins surged year-over-year, supporting robust dividends and improved ratios - TradingView
TradingView
Chennai Petroleum Net Profit Skyrockets to ₹3,062 Cr; Declares ₹54 Final Dividend - Trade Brains
Trade Brains
CPCL Q4 Results: ₹54 Dividend, Net Profit Up 189% - PSU Connect
PSU Connect
Chennai Petroleum Q4 Results: Net profit jumps 42%, revenue up 7%; dividend declared - CNBC TV18
CNBC TV18
Chennai Petro Announces Bumper Dividend of Rs 54/Share — Check Details - NDTV Profit
NDTV Profit
Recent context
- ·Q4 FY26 results (reported April 24, 2026) showed net profit up 42% YoY per CNBC TV18, with refining margins cited as the driver; a ₹54/share final dividend was declared alongside.
- ·News sentiment across 8 articles is entirely positive (5 positive, 3 neutral, 0 negative), concentrated around the Q4 results announcement — no adverse regulatory or operational headlines in the tracked window.
- ·Price at ₹1,009 is marginally below the 50-DMA (₹1,012) and RSI is at 45.15 (neutral); nearest support levels are at ₹988, ₹941, and ₹930.83 while resistance sits at ₹1,036, ₹1,045, and ₹1,085.
Strengths
- +Lowest PE in the tracked Energy peer set at 4.84 — below BPCL (4.94), ONGC (9.90), Coal India (9.16), and Reliance (22.37).
- +ROE of 32.13% ranks first among peers with available ROE data; Coal India is next at 28.12%.
- +Free cash flow was positive in 4 of available years and debt trend is classified as falling, consistent with Q4 FY26 reporting of a ₹3,062 Cr net profit and a ₹54/share final dividend declared.
- +Price is 16.5% above the 200-day moving average (₹866.74) and has gained 64.94% over 12 months, outperforming the period.
Weaknesses
- −D/E of 17.68 is exceptionally high for a non-financial sector company and amplifies sensitivity of equity returns to interest rate changes and earnings downturns.
- −ROE consistency score of 31 and only 3 of available years above 15% ROE indicate the current return level is cyclical, not structural; prior years included near-zero or loss periods.
- −5-year revenue declined 2.5%, meaning all earnings growth (202.5% over 5 years, 42% in Q4 alone) has been margin-driven rather than volume-driven — a structurally fragile base.
- −Quality score of 56 ranks second-lowest in the peer group; sector median context is limited by one placeholder peer (DUMMYVEDL3) with no metrics.
Open questions
- ?How much of the 5-year earnings improvement is attributable to structural operational changes at CPCL versus the broader gross refining margin cycle, and what historical GRM ranges has the company operated through?
- ?Given D/E of 17.68, what is the interest coverage ratio at current earnings levels, and how does that coverage change under a scenario where refining margins revert toward 5-year average levels?
- ?IOC holds a majority stake in CPCL — how have subsidiary capital allocation decisions (capex mandates, dividend policy, pricing pass-through) historically differed from what an independent refiner of similar scale might pursue?
- ?The consistency score of 31 implies earnings have been volatile across years — what proportion of the 5-year ROE-above-15% track record was concentrated in the most recent 1–2 years, and does that change the interpretation of the current valuation multiple?
Peer comparison: Energy
Ranks 2 of 6 on quality| Symbol | Name | P/E | ROE | Quality |
|---|---|---|---|---|
| CHENNPETRO | Chennai Petroleum Corporation Ltd.You're viewing | 4.8 | +32.1% | 56 |
| Industry avg | across 5 peers | 11.6 | +18.6% | 53 |
| COALINDIA | Coal India Ltd. | 9.2 | +28.1% | 77 |
| ONGC | Oil & Natural Gas Corporation Ltd. | 9.9 | — | 54 |
| BPCL | Bharat Petroleum Corporation Ltd. | 4.9 | — | 53 |
| RELIANCE | Reliance Industries Ltd. | 22.4 | +9.1% | 29 |
| DUMMYVEDL3 | Dummy Vedanta Ltd. 3 | — | — | — |
Technical state
Current price
₹1,009.00
SMA 50
₹1,012.13
SMA 200
₹866.74
RSI (14)
45.1 (neutral)
From 52w high
-13.0%
1Y return
+64.9%
3M return
+9.8%
50-DMA
Below
200-DMA
Above
Algorithmic support levels
Algorithmic resistance levels
Risk flags
- highDebt-to-equity of 17.68 is exceptionally elevated for a non-financial refinery. While refining businesses carry structural leverage, this level means creditors fund a substantial portion of assets and amplifies earnings volatility through interest obligations.
- mediumROE consistency score of 31 with only 3 of available years above 15% ROE signals that the current 32.13% ROE is not a durable feature. The 5-year earnings growth of 202.5% reflects recovery from prior low or near-zero profit years, not compounding from a stable base.
- medium5-year revenue growth is -2.5%, meaning earnings growth has been driven entirely by gross refining margin expansion rather than volume. Profit margin of 4.88% is thin and inherently cyclical; a reversal in GRMs could sharply compress earnings.
- lowNo analyst coverage data (rating or count) is available for CHENNPETRO. One of the 6 sector peers is a placeholder entry (DUMMYVEDL3) with null metrics, reducing reliability of sector rank comparisons.
Cross-section contradictions
- 5-year revenue growth is -2.5% yet 5-year earnings growth is 202.5%. The stock trades at PE 4.84, consistent with cyclical-peak pricing, while Q4 FY26 net profit was up 42–189% YoY and the price has gained 64.94% over 12 months. The divergence between shrinking revenue and surging profits raises the question of whether GRM-driven earnings reflect a structural shift or a transient margin cycle.
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Fundamentals & technicals: refreshed 25 Jun 2026 · refreshed daily at 01:00 IST
AI synthesis (narrative, snapshot, strengths/weaknesses, peer ranking): generated 17 May 2026 · rotates through NIFTY 500 every ~5 days