Chennai Petroleum Corporation Ltd.
ISIN: INE178A01016 • Market Cap: ₹21,445 Cr
The 5-Pillar Quality Audit for Chennai Petroleum Corporation Ltd.
Evaluated across Profitability, Financial Health, Historical Compounding, Valuation Safety, and Ownership Governance:
1. Profitability & Capital Efficiency
Weight: 25%Measures operating margins (7.0%), Return on Capital Employed (30.2%), and equity compounding (27.9%).
2. Financial Health & Solvency
Weight: 25%Debt-to-Equity is 0.18 with comfortable interest coverage and clean working capital.
3. Growth & Compounding Track Record
Weight: 20%Historical 3Y Sales CAGR (10.4%) and 3Y PAT CAGR (14.4%).
4. Valuation Multiple & Margin of Safety
Weight: 15%Trades at P/E of 5.14 vs PEG of 5.71 and Dividend Yield of 4.3%.
5. Ownership Quality & Governance
Weight: 15%Promoter holding stands at 67.3%, backed by 16.0% institutional ownership.
Key Fundamental Strengths
Superior Capital Efficiency (ROCE: 30.2%)
Chennai Petroleum Corporation Ltd. generates exceptional return on capital employed of 30.2%, reflecting pricing power and competitive moat.
Robust Equity Compounding (ROE: 27.9%)
Shareholder equity compounds at a healthy 27.9%, exceeding average Indian equity benchmarks.
Attractive Valuation Margin (P/E: 5.14)
Trading at a P/E multiple of 5.14, the stock offers a favourable risk-reward entry for quality compounding.
Areas to Watch & Potential Risks
Sectoral & Macro Headwinds (Oil Gas & Consumable Fuels)
Subject to broader cyclical demand, raw material price shifts, and regulatory frameworks governing the Oil Gas & Consumable Fuels space.
Quantitative Strategy Eligibility
Checking CHENNPETRO against established Indian wealth creation frameworks:
Coffee Can Investing Framework
Passes Saurabh Mukherjea's Coffee Can rule: 10%+ sustained revenue growth and 15%+ ROCE/ROE.
Quality Factor Screener (High RoIC + Low Debt)
Qualifies for Indian Quality Indices with overall score of 78/100 and clean gearing.
GARP / Value-Growth Blend
Provides balanced valuation margin with strong profitability scores.
Oil Gas & Consumable Fuels Sector Peer Comparison
Compare CHENNPETRO directly against top industry peers by market capitalization:
| Company | 5-Pillar Score | Market Cap | P/E | ROCE | D/E | Scorecard |
|---|---|---|---|---|---|---|
| Chennai Petroleum Corporation Ltd. (CHENNPETRO)Current | 78/100 | ₹21,445 Cr | 5.14 | 30.2% | 0.18 | — |
| Reliance Industries Ltd. (RELIANCE) | 68/100 | ₹17.69 Lakh Cr | 23.68 | 9.2% | 0.41 | View |
| Oil & Natural Gas Corporation Ltd. (ONGC) | 67/100 | ₹2.99 Lakh Cr | 6.88 | 12.7% | 0.38 | View |
| Coal India Ltd. (COALINDIA) | 73/100 | ₹2.47 Lakh Cr | 7.90 | 19.6% | 0.12 | View |
| Indian Oil Corporation Ltd. (IOC) | 69/100 | ₹1.93 Lakh Cr | 5.73 | 18.9% | 0.55 | View |
| Bharat Petroleum Corporation Ltd. (BPCL) | 72/100 | ₹1.34 Lakh Cr | 7.83 | 25.6% | 0.45 | View |
Frequently Asked Questions: Chennai Petroleum Corporation Ltd.
Q:What is the 5-Pillar Fundamental Score for Chennai Petroleum Corporation Ltd. (CHENNPETRO)?
Chennai Petroleum Corporation Ltd. has a RupeeTools Fundamental Score of 78/100, placing it in the 'Solid & Healthy' category. Its pillar scores are: Profitability (83/100), Financial Health (83/100), Growth (70/100), Valuation (68/100), and Ownership Quality (82/100).
Q:Is CHENNPETRO fundamentally strong for long-term investment?
Yes, CHENNPETRO exhibits solid fundamental strength with a 78/100 score, driven by a return on equity of 27.9% and a debt-to-equity ratio of 0.18.
Q:Does CHENNPETRO pass the Coffee Can Investing filter?
Yes! CHENNPETRO satisfies both core pillars of Coffee Can Investing: achieving consistently high capital returns (ROCE/ROE >= 15%) alongside double-digit multi-year revenue growth.
Q:How does CHENNPETRO compare against other Oil Gas & Consumable Fuels peers?
Within India's Oil Gas & Consumable Fuels sector, CHENNPETRO trades at a P/E of 5.14 and generates an ROCE of 30.2%. Compare its 5-Pillar score of 78/100 against top sector peers like Reliance Industries Ltd. (68/100), Oil & Natural Gas Corporation Ltd. (67/100).
Regulatory & SEBI Research Analyst Compliance Disclaimer:
This 5-pillar fundamental score is an automated quantitative health check generated purely from historical public financial statements, corporate filings, and exchange disclosures for educational and informational purposes only. It does NOT constitute investment advice, a stock recommendation, or a solicitation to buy or sell securities. RupeeTools is not a SEBI-registered Research Analyst. Please consult a SEBI-registered financial advisor before making investment decisions.