Confidence Petro remains volatile

Confidence Petroleum, a penny stock has been volatile for the past few days now. Yesterday, it had hit a UC and LC, both on the same day. Even on 14th Dec, the stock hit a LC. And today, it hit the 5% UC again at Rs.7.54.  

The company is an LPG bottler and largest LPG cylinder manufacturer. The euphoria on the counter is that it has announced that its Board will meet on 19th Dec to consider the proposal of buy-back of equity shares of the company.

The company is very small in terms of its financials – it has ended Q2FY17 with a net profit of Rs.1 crore on net sales of Rs.111 crore. But its equity is large at Rs.25.88 crore. Market cap stands at Rs.195 crore. Promoters stake is at just 46.32.

This kind of a stock does not inspire any confidence and the way it has been buzzing for past few days shows the amount of speculation which happens on this counter.