Castrol India Limited (CASTROLIND) AI Stock Analysis

• Market Cap: ₹182.05B
• Dividend Yield: 6.86%
• Average Volume (3M): 88.26K
• Price to Earnings (P/E): 18.6
• Beta (1Y): 1.09
• Revenue Growth: 6.83%
• EPS Growth: 8.79%
• Country: IN
• Employees: 639
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Oil & Gas Refining & Marketing
• EPS (TTM): 2.50
• Shares Outstanding: 989,122,400
• 10 Day Avg. Volume: 75,311
• 30 Day Avg. Volume: 88,262
• PEG Ratio: 2.92
• Price to Book (P/B): 8.57
• Price to Sales (P/S): 3.64
• P/FCF Ratio: 20.52
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 72 Outperform
• Price Target: ₹222.00 ▲(16.75% Upside)

Castrol India Limited's overall stock score is driven primarily by its strong financial performance and attractive valuation. The company's robust profitability, solid balance sheet, and high dividend yield are significant strengths. However, the technical analysis indicates some short-term bearish momentum, which slightly tempers the overall score.

Positive Factors

Strong Financial Performance

The company's robust profitability, solid balance sheet, and healthy cash flow generation indicate strong financial health, providing resilience and capacity for future investments.

Low Financial Leverage

Low financial leverage enhances financial stability and reduces risk, allowing the company to withstand economic downturns and invest in growth opportunities without excessive debt burden.

High Profit Margins

High profit margins reflect effective cost management and pricing power, providing a competitive edge and the ability to reinvest in business growth and innovation.

Negative Factors

Revenue Growth Concerns

While positive, the modest revenue growth rate may indicate challenges in expanding market share or product adoption, potentially limiting future earnings expansion.

Market Competition

Operating in a competitive industry, Castrol India faces pressure from rivals which could impact pricing strategies and market share, challenging long-term growth.

Dependence on Innovation

Dependence on continuous innovation to meet evolving customer needs poses a risk, as failure to innovate could lead to loss of market relevance and reduced revenues.

Castrol India Limited Business Overview & Revenue Model

Company Description

Castrol India Limited manufactures and markets automotive and industrial lubricants, and provides related services in India and internationally. It provides engine oils, axle lubricants, brake fluids, auto transmission fluids, greases, chain lubricants, fork and gear oils, driveline fluids, coolants, diesel exhaust fluids, and hydraulic fluids. The company offers its products under the Castrol POWER1 ULTIMATE, Castrol MAGNATEC, Castrol Activ, Castrol CRB Turbomax, Castrol GTX SUV, and Castrol VECTON brands. It serves the automotive, industrial, marine, and oil and gas industries. The company was founded in 1910 and is based in Mumbai, India. Castrol India Limited is a subsidiary of Castrol Limited.

How the Company Makes Money

Castrol India generates revenue primarily through the sale of its lubricants and related products. The company's revenue model is based on a combination of direct sales to consumers and B2B transactions with automotive manufacturers and industrial clients. Key revenue streams include the sale of engine oils, transmission fluids, and industrial lubricants. Additionally, Castrol India benefits from partnerships with automotive OEMs (Original Equipment Manufacturers), which often specify Castrol products for their vehicles, increasing brand loyalty and sales volumes. The company also invests in marketing and promotional activities to enhance brand visibility and consumer engagement, further driving its sales.

Castrol India Limited Financial Statement Overview

Summary

Castrol India Limited demonstrates strong financial performance with impressive profitability metrics, a solid balance sheet, and healthy cash flow generation. The company shows consistent revenue and profit growth, supported by effective cost management and operational efficiency. The low financial leverage and substantial equity base enhance its financial stability.

Income Statement

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

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

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.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	55.61B	53.65B	50.75B	47.74B	41.92B	30.04B
Gross Profit	26.92B	25.98B	24.01B	22.39B	21.01B	17.08B
EBITDA	13.21B	12.76B	12.07B	11.25B	10.69B	8.25B
Net Income	9.56B	9.27B	8.64B	8.15B	7.58B	5.83B
Balance Sheet
Total Assets	32.73B	36.35B	34.20B	30.69B	27.04B	23.93B
Cash, Cash Equivalents and Short-Term Investments	8.73B	13.83B	11.83B	11.99B	12.81B	12.54B
Total Debt	731.50M	820.20M	769.50M	499.50M	67.20M	174.40M
Total Liabilities	14.54B	13.57B	12.98B	11.83B	10.59B	9.79B
Stockholders Equity	18.19B	22.78B	21.22B	18.86B	16.46B	14.14B
Cash Flow
Free Cash Flow	0.00	9.51B	7.58B	8.06B	5.47B	8.51B
Operating Cash Flow	0.00	10.44B	8.53B	9.16B	6.30B	8.93B
Investing Cash Flow	0.00	-2.67B	-2.51B	616.90M	-830.80M	-2.01B
Financing Cash Flow	0.00	-8.19B	-6.64B	-6.08B	-5.58B	-5.64B

Castrol India Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 190.15
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

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 190.15 is above the 20-day moving average (MA) of 186.58, above the 50-day MA of 187.83, and below the 200-day MA of 200.96, indicating a bearish trend. The MACD of -1.28 indicates Positive momentum. The RSI at 42.37 is Neutral, neither overbought nor oversold. The STOCH value of 61.40 is Neutral, 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CASTROLIND	72 Outperform	₹182.05B	18.64	―	6.86%	6.83%	8.79%
MRPL	71 Outperform	₹309.33B	14.20	―	2.04%	-11.96%	14.31%
GANDHAR	67 Neutral	₹14.66B	13.79	―	0.34%	-1.05%	-11.57%
PANAMAPET	66 Neutral	₹17.76B	9.43	―	1.71%	10.19%	-4.18%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
GULFPETRO	62 Neutral	₹1.70B	6.26	―	―	3.59%	10.55%
CONFIPET	57 Neutral	₹10.79B	11.37	―	0.27%	37.24%	24.89%

Castrol India Limited Corporate Events

Castrol India Broadens Auto Care Portfolio With New Vehicle Aesthetic Range

Castrol India has expanded its Auto Care portfolio with the launch of a new Aesthetic Care range for vehicles, introducing four products: Castrol Ultra Protect Shampoo, Ultra Protect Wax, Glass Cleaner, and Dash & Leather Dresser. Designed for regular, at-home maintenance of bikes and cars, the products focus on cleaning, long-lasting protection, and preserving both exteriors and interiors without requiring specialised tools or complex application, thereby addressing growing consumer demand for reliable DIY vehicle care solutions and reinforcing Castrol’s strategic push into the wider vehicle maintenance ecosystem alongside its existing chain care, polishing, anti-rust, and helmet cleaning products.

Castrol India Launches Mobile Classrooms for Truckers in Uttar Pradesh

Castrol India Limited has launched a new initiative called ‘Highways as Classroom’ under its Sarathi Mitra program to support truck drivers in Uttar Pradesh. This initiative involves a mobile classroom that will visit 46 locations, providing truckers with essential training in safety, financial planning, health, and digital literacy. This effort aims to enhance the well-being and skills of the trucking community, which is a vital part of India’s supply chain. The initiative also includes a digital platform, Digital Sarathi Mitra, to offer continuous access to learning resources, marking a significant step towards creating a more inclusive and supportive ecosystem for truck drivers.