Chennai Petro surges over 35% in two day on high volumes

MUMBAI – Aggressive buying in Chennai Petroleum Corporation (CPCL) has led to the share price surging 35.78 per cent in just two sessions.

In just 30 minutes of trade, the stock surged 13.42 per cent to touch 52-week high of Rs 141.90. Over 4.95 lakh shares have changed hands in the counter as compared to two-week average of 2.63 lakh shares.

According to Mitesh Thacker, Technical Analyst, miteshthacker.com, the stock looks pretty good at current levels and trend will last for some time to come. “Chennai Petro can touch Rs 157 in next 5-7 sessions,” he told ET Now.

The company has sought shareholders nod for borrowing limit up to Rs 8,000 crore and bonds issue of up to Rs 3,000 crore.

State-owned Indian Oil Corporation will invest Rs 1,000 crore for raising its stake in CPCL, which will use the money for expanding operations. Last month, the CPCL Board decided to increase the authorised share capital of the company from Rs 400 crore to Rs 1,400 crore, the company said in a stock exchange filing.

Chennai Petroleum Corporation reported over seven-fold rise in net profit at Rs 364.57 crore for the fourth quarter ended March 31, 2015 against a net profit of Rs 49.81 crore during the corresponding period of the previous year.

Its total income from operations declined to Rs 8,823.95 crore for the quarter ended March 31, 2015, from Rs 13,339.68 crore registered during the same period a year ago.