Prabhudas Lilladher is bullish on Confidence Petroleum India has recommended buy rating on the stock with a target price of Rs 65 in its research report dated January 01, 2019.
Prabhudas Lilladher's research report on Confidence Petroleum India
Confidence Petroleum India Ltd (CPIL) is a Nagpur based company promoted by the Khara Group engaged in four aspects of LPG, (I) LPG cylinder manufacturing, (ii) LPG bottling, (iii) LPG marketing and (iv) Auto LPG dispensing stations. Company is on a strong growth path and is expected to clock a strong growth in revenue to Rs19,407mn a CAGR of 47% from FY18-FY21 with growth mainly coming from the fast-growing auto LPG dispensing stations. Importantly, they are expanding in a high growth, cash flow positive retail foray in auto LPG dispensation where the payback period is under 18 months leading to high capital return ratios.
Outlook
CPIL is expected to report an EPS of Rs 2.4 for FY19, 3.7 for FY20 and 4.9 for FY21. The stock at the current price of Rs40, trades at a Target price of Rs 65, trades at a PER of 17.5x FY20 earnings and 13.2x FY21 EPS. 'BUY'.
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