Dolly Khanna Portfolio: Multibagger Stock Chennai Petroleum Corporation Hits Record High with 14% Intraday Rally

Chennai Petroleum Corporation Limited shares have been performing exceptionally well, earning the label ‘multibagger stocks’ for their potential to increase in value multiple times. This stock, part of Dolly Khanna’s portfolio, saw strong buying interest in the early morning session. The share price opened higher at ₹1,100 on the NSE and quickly reached an intraday high of ₹1,234.80, marking a new lifetime high.

Reasons for the Rally:

Stock market experts believe that the rise in oil stocks, including Chennai Petroleum Corporation, is due to rumors that the central government is considering bringing petrol and diesel under the GST net. This move is expected to benefit private oil companies.

Saurabh Jain, Vice President—Research at SMC Global Securities, explained, “Chennai Petroleum Corporation and other oil maker companies are gaining on speculation that the government may include petrol and diesel prices under GST in the upcoming Union Budget 2024. If this happens, it will be advantageous for oil manufacturing companies and the industry.”

Avinash Gorakshkar, Head of Research at Profitmart Securities, added, “Uniform pricing for petrol, diesel, and other petroleum products could significantly benefit oil companies and help control inflation, as fuel prices impact the entire economy.”

Caution from Experts:

Both experts cautioned that the stock’s rise is based on rumors. They suggested that current shareholders hold their positions and advised new buyers to wait for an official announcement.

Dolly Khanna’s Shareholding:

As of the April to June 2024 quarter, Dolly Khanna owns 16,18,520 shares of Chennai Petroleum Corporation, which is 1.09% of the company’s total paid-up capital.