Chennai Petroleum soars on heavy volumes

The stock soared 15% to Rs 229 on the BSE on back of over three-fold jump in trading volumes.

Shares of Chennai Petroleum Corporation (CPCL) has soared 15% to Rs 229 on the BSE on back of heavy volumes.

The trading volumes on the counter jumped more than three-fold with a combined 6.94 million shares representing 4.5% of total equity of CPCL changed hands on the BSE and NSE till 03:02 PM.

CRISIL reaffirmed its ‘stable’ outlook on the bank facilities and debt programmes of CPCL as it continue to reflect its strong operational and financial linkages with the parent, Indian Oil Corporation, and a favorable operating risk profile.

These rating strengths are partially offset by CPCL's exposure to risks related to volatility in crude oil prices and large debt-funded capital expenditure (capex) plans.

The company could maintain its healthy operating risk profile, driven by high capacity utilization and its focus on maximizing middle-distillate yield. However, CRISIL believes that CPCL's profitability will remain exposed to volatility in crude oil prices, over the medium term, CRISIL said in a report dated September 4, 2015.

At 03:02 PM, the stock was up 13% at Rs 226 on the BSE.