Confidence Petroleum India runs out fuel

Confidence Petroleum India slumped 4.56% to Rs 11.50 at 13:30 IST on BSE after the firm said it would form an equal joint venture with Energtek Inc. in India to provide pipeless natural gas supply to automotive and industrial consumers.

The scrip had touched a high of Rs 11.65 and a low of Rs 10.85 so far during the day. The stock had hit a 52-week high of Rs 34.45 on 8 January 2008 and a 52-week low of Rs 4.94 on 19 April 2007.

The small-cap liquefied petroleum gas (LPG) bottling firm has an equity capital of Rs 20.25 crore. Face value per share is Rs 1.

At the current price of Rs 11.50, the scrip trades at a PE multiple of 8.71, based on Q3 December 2007 annualised EPS of Rs 1.32.

Confidence Petroleum would invest Rs 100 crore in the venture in the first phase

The net profit of Confidence Petroleum India surged 233.3% to Rs 6.70 crore on 132.7% rise in sales to Rs 36.26 crore in Q3 December 2007 over Q3 December 2006.

Confidence Petroleum supplies LPG for application in residential, commercial business enterprise and industrial use. It provides bottling assistance to oil companies in government sector, private and international firms.