Hem Securities continues to remain bullish on Chennai Petroleum Corporation and has upgraded its previous target of Rs 348 by 22 per cent to Rs 427 in the long term investment horizon in its July 22, 2008 research report. "The company has posted excellent results, ahead of the market expectations for the quarter ended June’08. The topline of the company has grown by over 81 % from Rs 62217 million clocked Q1FY08 to Rs 112532 million in Q1FY09. EBITDA stood at Rs 11688.70 million up by over 71.74 % from the previous quarter and 97 % higher than Rs 5914 million clocked in Q1FY08. Net profit stood at Rs 7032.70 million against Rs 3231.50 million posted in the corresponding quarter last year, showing a whopping YoY growth of near 117%.

"Presently the stock is trading at Rs 291 which is at 2.88 times to its EPS of Rs 100.87 and 1.25 times to its book value of Rs 232.52. Keeping in view the bright prospects of the company, we continue to remain bullish on the stock and have upgraded our previous target of Rs 348 by 22 per cent to Rs 427 in the long term investment horizon, implying an appreciation of approximately 47 per cent from the present level of Rs 291," says Hem's research report.

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