Confidence Petroleum Commissions New LPG Dispensing Stations

On Wednesday, the Indian benchmark indices were seen trading in the red with Nifty and Sensex trading down by 0.63% and 0.72%, respectively. The broader markets have displayed a relative outperformance with Nifty Smallcap gaining nearly 0.50%, while Midcap is almost unchanged.  

One of the stocks from the Smallcap space that is seeing good buying demand is Confidence Petroleum India Ltd. The stock has zoomed nearly 6% and is trading at Rs 66.95. The stock made an intraday high of Rs 67.90 and a low of Rs 62.95.  

What’s the key catalyst behind the surge in the stock price? 

The company has said that it is in the progression of achieving its target, and has commissioned 16 new Auto LPG Dispensing Stations (ALDS) to cater to the green fuel requirements of cars and auto rickshaws. With these 16 new locations, the strength of our ALDS stations has reached 235. Furthermore, the company’s CNG retailing division in Bangalore has crossed 50000 KG (per day) sales. Yesterday sales in Bangalore city were 53288 Kg.  

From a technical standpoint, the stock is currently trading above its 20, 50 and 100-DMA. Both the 20 and 50-DMA are trending higher and are in the desired sequence. Going forward, the stock has a stiff resistance placed in the region of Rs 68.8-69.5 which is a confluence of 200-DMA and the swing high of May 25.

In Q4FY23, the stock reported a jump of 75% YoY in its revenue and the net profit for the Q4FY23 surged to Rs 26 crore up by nearly 73% YoY. With this outstanding performance in Q4FY23, the stock Board of Directors recommended a final dividend of 10% i.e. Re 0.10 per equity share on the face value of Rs 1 each for the financial year 2022-23 subject to approval of shareholders at the ensuing Annual General Meeting.  

Company has issued and allotted 8,80,000 equity shares of a face value of Rs 1 each fully paid up to QUANT MUTUAL FUND (QUANT VALUE FUND) consequent to the exercise of 8,80,000 Convertible Warrants held by QUANT MUTUAL FUND (QUANT VALUE FUND). The allotment has been made for cash, upon the receipt of the remaining exercise price of Rs 47.625 per warrant (being an amount equivalent to the 75% of the warrant exercise price of Rs 63.50 per warrant), aggregating to Rs 4,19,10,000. These equity shares allotted on exercise of the warrants shall rank pari passu in all respects with the existing equity shares, including dividends, if any.