I have been recommending CONFIDENCE PETROLEUM INDIA LTD ,CPIL to my friends since Dec. 2005.That point of time the share price was just Re. 0.8 (FV =Re 1) and the scrip was almost ignored by most investors.However for the last 20 days this script is always at the upper circuit wth the result that today it closed at Rs. 2.18,and with each passing day its appreciating by 10%.I expect the share to touch Rs. 3 soon definitely before the end of Nov. 2006.
CPIL is into LPG bottling having oil majors like IOC,HPCL,BPCL etc.as its biggest clients.But this is a LOW MARGIN business with the result that company was not making adequate profits.However now the management is amalgamating its own pvt.ltd. comapny CONFIDENCE CYLINDERS & PETROCHEM PVT LTD with CPIL and post amalgamation CPIL will become a much bigger company.It will be the second listed company after EVEREST KANTO to have the most modern plant with economic capacities to produce LPG and CNG cylinders.Post amalgamation its equity capital is expected to be Rs. 15 crores with the promoters controlling almost 70% shares.If Everest Kanto’s share price is any indication then the price of CPIL share can spurt to Rs. 50 ( FV Re.1) as has happened to Everest kanto’s share price (FV Rs. 10 )which has seen a low of Rs. 190 and high of Rs. 519 and CMP is Rs. 495.
CPIL can be a multibagger.
Declaration: I have a position in the share and therefore I have a vested interest in its share price appreciating . Please consult your financial advisor before investing in CPIL.