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Castrol India Limited (IN:CASTROLIND)
:CASTROLIND
India Market
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Castrol India Limited (CASTROLIND) AI Stock Analysis

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IN:CASTROLIND

Castrol India Limited

(CASTROLIND)

Rating:66Neutral
Price Target:
₹223.00
▲(12.68% Upside)
Castrol India Limited's strong financial performance is a significant positive factor, supported by effective cost management and a solid balance sheet. However, technical analysis indicates bearish momentum, which could pose short-term risks. The stock's valuation is fair, with an attractive dividend yield, providing a balanced investment proposition.

Castrol India Limited (CASTROLIND) vs. iShares MSCI India ETF (INDA)

Castrol India Limited Business Overview & Revenue Model

Company DescriptionCastrol India Limited (CASTROLIND) is a leading manufacturer and distributor of lubricants in India. The company operates in the automotive and industrial sectors, providing a wide range of products including engine oils, transmission fluids, and greases. Castrol India is known for its high-performance and technologically advanced products, catering to a diverse clientele ranging from everyday consumers to industrial enterprises. As a subsidiary of BP Group, Castrol India benefits from a strong international presence and expertise in the lubricants industry.
How the Company Makes MoneyCastrol India Limited generates revenue primarily through the manufacture and sale of its lubricants and related products. The company serves various segments, including automotive, industrial, and marine. In the automotive sector, Castrol offers products for passenger cars, commercial vehicles, and motorcycles, which are sold through a wide distribution network of dealers, workshops, and retail outlets. In the industrial sector, the company provides specialized lubricants for manufacturing processes and machinery. Additionally, Castrol India benefits from brand partnerships and co-branding initiatives, which enhance its market reach and consumer engagement. The company's revenue model is heavily reliant on its ability to innovate and provide high-quality lubricants that meet the evolving needs of its customers.

Castrol India Limited Financial Statement Overview

Summary
Castrol India Limited demonstrates strong financial performance with robust profitability metrics, a solid balance sheet, and healthy cash flow generation. The company maintains a low debt-to-equity ratio, high return on equity, and substantial cash reserves, indicating financial stability and effective capital management.
Income Statement
85
Very Positive
Castrol India Limited exhibits strong profitability with a consistent increase in revenue over the years, highlighted by a robust gross profit margin of 44.5% and a net profit margin of 17.3% for the most recent year. The company has maintained positive growth, with a revenue growth rate of 5.3% year-over-year. EBIT and EBITDA margins are healthy, indicating efficient cost management and operational leverage. Overall, the income statement reflects strong financial performance and profitability.
Balance Sheet
80
Positive
The balance sheet of Castrol India Limited is strong, characterized by a low debt-to-equity ratio of 0.04, indicating prudent leverage. A healthy return on equity (ROE) of 40.7% showcases effective use of shareholders' equity to generate profits. The equity ratio stands at 62.7%, affirming financial stability with a substantial equity base. The company maintains substantial cash reserves, enhancing its liquidity position. However, continued monitoring of liabilities is advised to maintain balance sheet strength.
Cash Flow
78
Positive
Castrol India Limited demonstrates solid cash flow generation capabilities with a positive free cash flow growth rate of 25.6% year-over-year. The operating cash flow to net income ratio of 1.13 indicates strong cash conversion from operations. The free cash flow to net income ratio of 1.03 reflects effective capital management. The company effectively balances investing and financing activities, contributing to its robust cash flow position.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue54.62B53.46B50.75B47.74B41.87B29.92B
Gross Profit23.49B23.79B23.46B21.93B19.33B15.53B
EBITDA13.64B13.67B12.81B11.78B11.14B8.76B
Net Income9.44B9.27B8.64B8.15B7.58B5.83B
Balance Sheet
Total Assets0.0036.35B34.20B30.69B27.04B23.93B
Cash, Cash Equivalents and Short-Term Investments13.83B13.83B11.83B12.40B12.81B12.54B
Total Debt0.00820.20M769.50M499.50M67.20M174.40M
Total Liabilities-22.78B13.57B12.98B11.83B10.59B9.79B
Stockholders Equity22.78B22.78B21.22B18.86B16.46B14.14B
Cash Flow
Free Cash Flow0.009.51B7.58B8.06B5.47B8.51B
Operating Cash Flow0.0010.44B8.53B9.16B6.30B8.93B
Investing Cash Flow0.00-2.67B-2.51B616.90M-830.80M-2.01B
Financing Cash Flow0.00-8.19B-6.64B-6.08B-5.58B-5.64B

Castrol India Limited Technical Analysis

Technical Analysis Sentiment
Negative
Last Price197.90
Price Trends
50DMA
212.47
Negative
100DMA
208.94
Negative
200DMA
201.17
Negative
Market Momentum
MACD
-4.04
Positive
RSI
35.05
Neutral
STOCH
15.99
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:CASTROLIND, the sentiment is Negative. The current price of 197.9 is below the 20-day moving average (MA) of 204.74, below the 50-day MA of 212.47, and below the 200-day MA of 201.17, indicating a bearish trend. The MACD of -4.04 indicates Positive momentum. The RSI at 35.05 is Neutral, neither overbought nor oversold. The STOCH value of 15.99 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:CASTROLIND.

Castrol India Limited Peers Comparison

Overall Rating
UnderperformOutperform
Sector (63)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
73
Outperform
₹14.59B19.35
0.34%-5.76%-40.43%
66
Neutral
₹195.75B20.47
6.57%7.57%8.08%
66
Neutral
₹17.78B9.90
1.70%12.70%-10.00%
65
Neutral
₹16.08B17.40
0.21%33.77%-3.64%
64
Neutral
₹2.11B7.92
-6.55%-9.26%
63
Neutral
$20.52B14.79-2.72%3.09%1.95%-4.74%
55
Neutral
₹221.70B461.09
2.37%-3.99%-110.83%
* Consumer Defensive Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
IN:CASTROLIND
Castrol India Limited
197.90
-44.14
-18.24%
IN:CONFIPET
Confidence Petroleum India Limited
48.40
-38.70
-44.43%
IN:GANDHAR
Gandhar Oil Refinery (India) Limited
149.10
-64.99
-30.36%
IN:GULFPETRO
GP Petroleums Limited
41.30
-46.36
-52.89%
IN:MRPL
Mangalore Refinery & Petrochemicals Ltd.
126.50
-63.15
-33.30%
IN:PANAMAPET
Panama Petrochem Limited
293.85
-108.91
-27.04%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Aug 23, 2025