Chennai Petroleum Corporation

CPCL is attractive

Posted by : Guest
Price when posted : BSE: Rs 106.50 ( 1.09 % ), NSE: Rs. 106.15 ( 0.62 % )

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I am not a stock analyst. But I do some basic maths on stocks. The following are the parameters

Market Cap Vs Reserve Cash: 1563 Vs 3315 - Very Good

Loans Vs Reserve Cash : 2450 Vs 3315 Good. The loan is around 7.65% with good AAA/Stable S&P & P1+ Crisil rating

Book Value Vs Current Market Price : 232 Vs 105 - Really Attractive

Growth : Average growth of 35% in the last 4 years. EPS 75,

Let me take the average 4 yrs EPS as base which comes to 45(50% of last EPS). I assume a growth of 5% (conservative) for the next 3 years (mid-term) and somebody ready to offer a PE of 3, the stock is at the minimum valued at 147Rs on PEG basis.

The face value is 10 and the company has a history of good divedent distribution. Add that to your returns

Considering all the above, 100Rs for CPCL is a good entry point for a 3 year horizontal. One can definitely stand to gain a minimum of 100% profit

One cannot time the market. The sentiment currently is pretty bad. Does this share can go down. I don`t know. All I feel is that putting 100Rs on this share is worth considering.




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Target 120

Posted by : Guest
Price when posted : BSE: Rs 109.25 ( 3.65 % ), NSE: Rs. 109.90 ( 4.52 % )

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Down target of 110 reached comfortably. Wait for new target at this web space next week....

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Target 120

Posted by : Guest

The new down target is 110.

Chennai petro downtarget=80....

Posted by : jdosvd
Price when posted : BSE: Rs 114.00 ( -2.06 % ), NSE: Rs. 113.85 ( -2.06 % )

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No this strategy is not advisable as with mounting losses dividend will be slashed/skipped.Do not go on any such strategies in this bearish market.Just wait and watch.Stock still has long way to go....

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Chennai petro downtarget=80....

Posted by : stkstudent

What if one does bottom fishing at lowest probable level, that will bring down the average price and also the dividend yield will improve, would you advise on this strategy ?

Chennai petro downtarget=80....

Posted by : stkstudent
Price when posted : BSE: Rs 116.40 ( -0.68 % ), NSE: Rs. 116.25 ( -0.64 % )

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What if one does bottom fishing at lowest probable level, that will bring down the average price and also the dividend yield will improve, would you advise on this strategy ?...

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Chennai petro downtarget=80....

Posted by : stkstudent

What if one does bottom fishing at lowest probable level, that will bring down the average price and also the dividend yield will improve, would you advise on this strategy ?

Target 120

Posted by : stkstudent
Price when posted : BSE: Rs 116.40 ( -0.68 % ), NSE: Rs. 116.25 ( -0.64 % )

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What you have stated about future dividends is more so based on your personal feeling. The company has good reserves to give bonus as in the case of GAIL and also track record w.r.t. dividend. Dividend yield is always one of the most important factors to take any investment decision. Dividends reveal the financial capability of a company and also its attitude of sharing the gains with the investors. ...

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Chennai petro downtarget=80....

Posted by : stkstudent

What if one does bottom fishing at lowest probable level, that will bring down the average price and also the dividend yield will improve, would you advise on this strategy ?

Chennai Petro

Posted by : stkstudent
Price when posted : BSE: Rs 116.00 ( -1.02 % ), NSE: Rs. 116.25 ( -0.64 % )

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In the present scenario, 6 month period seems too short. Even with your buy price the dividend yield works out to more than 7%, so why not keep holding until the stock reaches your desired target. You should take your own decision that meets your purpose conveniently and suitably. ...

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Chennai Petro

Posted by : fasttreck

Hi ! I purchase 500 shares of Chennai Petro for Rs.231.65. Can I wait for good price or exit ? I am ready to wait for 6months if I get good return.
Regards,
Siddharth

Chennai Petro

Posted by : fasttreck
Price when posted : BSE: Rs 120.70 ( -2.31 % ), NSE: Rs. 120.65 ( -2.51 % )

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Hi ! I purchase 500 shares of Chennai Petro for Rs.231.65. Can I wait for good price or exit ? I am ready to wait for 6months if I get good return.
Regards,
Siddharth...

Target 120

Posted by : Guest
Price when posted : BSE: Rs 136.60 ( -4.54 % ), NSE: Rs. 136.60 ( -5.14 % )

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The new down target is 110....

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Chennai Petro

Posted by : fasttreck

Hi ! I purchase 500 shares of Chennai Petro for Rs.231.65. Can I wait for good price or exit ? I am ready to wait for 6months if I get good return.
Regards,
Siddharth