Chennai Petroleum Corporation Ltd. (CPCL), a subsidiary of Indian Oil Corporation Ltd., saw its shares surge by 14% on Tuesday, reaching a record high of ₹1,235. The stock had also gained 3.6% the day before.
This increase comes ahead of the record date for the dividend payout. In April, Chennai Petro declared a final dividend of ₹55 per share, which was double the amount announced in the previous financial year.
The record date for the dividend payout has been set for Friday, July 19. To be eligible for the dividend payout, one must have Chennai Petro shares in their portfolio by or before this date.
The total dividend payout will amount to ₹819 crore, which is nearly 30% of Chennai Petro’s full-year net profit of ₹2,711 crore.
While the stock has been performing well, experts like Sacchitanand Uttekar of Tradebulls Securities advise caution. It’s recommended to wait for dips in the stock price before entering, with a trend-based stop loss at ₹960. Despite this, Chennai Petro shares are currently trading 11.8% higher at ₹1,209 and have increased by 72% in 2024, making it the top gainer on the Nifty 500 index.
Chennai Petro shares have shown consistent growth this calendar year, except for a decline in May. The 24% surge seen in July so far marks the best performance in a single month this year.