Shares in Chennai Petroleum surged a huge 12 per cent in trade today, even as refining stocks fell today on rising crude prices.
The rally in the stock was largely on the back of a better than expected quarterly financial performance. The Stock rose as much as 12 percent to Rs 164.
Revenue at Chennai Petroleum for the quarter ending Dec 31, 2019 was down 7.14 percent at Rs 9,170.72 crore The company reported a net profit of Rs 11.29 crore for the quarter ending Dec 31, 2019, as against a loss of Rs 213 crores for the previous quarter ending Sept 30, 2019.
The performance of the company was better than expected. However, with rising crude prices most analysts expect oil refinery stocks to come under pressure.
Shares in Indian oil lost heavy ground today, after crude jumped 2 per cent on worries of supply shocks. The stock had in early morning trade lost more than 6 per cent.
Analysts see a difficult quarter for most of the oil refining companies for the quarter ending March 31, 2020. However, what makes some of these stocks interesting is the dividend yield.
According to reports the government may ask some of the companies in the refinery and oil marketing business to declare a higher dividend, to help reduce the budget deficit.