Castrol India Limited (CASTROLIND) AI Stock Analysis

• Market Cap: ₹196.88B
• Dividend Yield: 6.53%
• Average Volume (3M): 88.26K
• Price to Earnings (P/E): 20.6
• Beta (1Y): 1.05
• Revenue Growth: 7.57%
• EPS Growth: 8.08%
• Country: IN
• Employees: 639
• Sector: Consumer Goods
• Sector Strength: N/A
• 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: 2.83
• Price to Book (P/B): 8.57
• Price to Sales (P/S): 3.65
• 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: ₹222.00
• Price Target Upside: 11.53% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 72 Outperform
• Price Target: ₹222.00 ▲(11.53% 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.

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 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 shows consistent revenue and profit growth, effective cost management, and operational efficiency. Minimal 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	53.46B	50.75B	47.74B	41.87B	29.92B
Gross Profit	24.72B	23.79B	20.09B	22.39B	19.33B	15.53B
EBITDA	14.04B	13.67B	12.81B	11.78B	11.14B	8.76B
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: 199.05
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• 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 199.05 is below the 20-day moving average (MA) of 200.71, below the 50-day MA of 202.41, and below the 200-day MA of 202.39, indicating a bearish trend. The MACD of -0.64 indicates Negative momentum. The RSI at 45.32 is Neutral, neither overbought nor oversold. The STOCH value of 35.28 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	₹196.88B	20.59	―	6.53%	7.57%	8.08%
GANDHAR	66 Neutral	₹13.28B	17.60	―	0.37%	-5.76%	-40.43%
PANAMAPET	66 Neutral	₹16.58B	9.24	―	1.83%	12.70%	-10.00%
GULFPETRO	65 Neutral	₹2.03B	7.63	―	―	-6.55%	-9.26%
CONFIPET	65 Neutral	₹13.45B	14.57	―	0.25%	33.77%	-3.78%
MRPL	63 Neutral	₹246.85B	23.81	―	2.13%	-11.96%	14.31%
Sector *	57 Neutral	$3.13B	9.23	-34.32%	3.14%	-25.56%	-353.61%