GP Petroleums Limited (GULFPETRO) AI Stock Analysis

• Market Cap: ₹1.45B
• Dividend Yield: N/A
• Average Volume (3M): 3.41K
• Price to Earnings (P/E): 8.4
• Beta (1Y): 1.60
• Revenue Growth: 3.59%
• EPS Growth: 10.55%
• Country: IN
• Employees: 273
• Sector: Energy
• Sector Strength: 52
• Industry: Oil & Gas Refining & Marketing
• EPS (TTM): 1.04
• Shares Outstanding: 50,984,127
• 10 Day Avg. Volume: 5,334
• 30 Day Avg. Volume: 3,406
• PEG Ratio: -1.53
• Price to Book (P/B): 0.61
• Price to Sales (P/S): 0.33
• P/FCF Ratio: -20.49
• 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: 62 Neutral
• Price Target: ₹30.00 ▼(-16.32% Downside)
• Action: Reiterated Date: 11/22/25
• Date: Action: Reiterated 11/22/25

The overall stock score of 62 reflects a mix of strengths and challenges. The company's strong balance sheet and low valuation are significant positives, but these are offset by bearish technical indicators and cash flow issues. The absence of earnings call data and corporate events limits further insights.

Positive Factors

Strong balance sheet and low leverage

A strong equity base and low debt provide durable financial flexibility, enabling the company to fund working capital, withstand commodity cycles, and invest in maintenance or selective growth without straining liquidity. This underpins resilience over the next several months.

Stable EBIT and EBITDA margins

Stable underlying operating margins indicate consistent cost control and blending/processing efficiency in lubricant production. Sustained margin stability supports cash generation potential and protects profitability even if top-line volatility persists over 2-6 months.

Diversified revenue channels across retail, industrial, exports

Sales across retail, B2B industrial contracts and export markets reduce customer concentration and demand swings. This channel diversification stabilizes volumes and provides multiple growth levers, strengthening revenue resilience over the medium term.

Negative Factors

Operating cash flow turned negative in 2025

Negative operating cash flow and falling free cash flow are durable concerns: they restrict the company’s ability to fund capex, pay suppliers and sustain discretionary spending. Over months, this forces reliance on the balance sheet or external financing, raising liquidity risk.

Decline in revenue and slight margin compression

Sustained revenue decline and compressing gross/net margins reduce scale benefits and pressure profitability. Without clear new demand drivers or pricing power, the trend can weaken free cash flow and make it harder to sustain investments or absorb cost shocks over the medium term.

Return on equity has slightly decreased

A declining ROE signals a dip in capital efficiency versus prior periods. If the decrease continues it may indicate slower profit generation from shareholder capital, reducing long-term return potential and making it harder to justify reinvestment without efficiency gains.

GP Petroleums Limited Business Overview & Revenue Model

Company Description

GP Petroleums Limited engages in formulating, manufacturing, and marketing industrial and automotive lubricants, process oils, transformer oils, greases, and other specialties in India and internationally. It offers automotive lubricants, including automotive engine oils, gear and transmission oils, greases, engine coolant and brake fluids, and BS-VI compliant lubricants. The company also provides industrial lubricants and specialties comprising industrial lubricating and specialty oils; metal working fluids, corrosion preventive oils, cleaners, and quenching oils, and industrial greases, as well as process oils and specialties consisting of rubber process oils, and transformer oils. It markets its lubricants under the IPOL and REPSOL brand names through distributors and dealers. The company was formerly known as Sah Petroleums Limited and changed its name to GP Petroleums Limited in April 2015. The company was incorporated in 1983 and is headquartered in Mumbai, India. GP Petroleums Limited operates as a subsidiary of GP Global APAC Pte. Ltd.

How the Company Makes Money

GP Petroleums Limited primarily makes money by selling lubricants and related petroleum-based products. Its key revenue stream is the manufacture and sale of finished lubricants (automotive and industrial), where earnings are driven by (a) sales volumes across vehicle/industrial end-markets and (b) the margin between product selling prices and input/processing costs (base oils, additives, packaging, blending, logistics, and marketing). The company generates revenue through multiple channels including retail/consumer packs (typically sold via distributors and dealers), sales to industrial customers (B2B supply contracts for factories and infrastructure users), and sales tied to the automotive ecosystem such as workshops and service centers. Exports and sales in overseas markets can also contribute to revenue where the company supplies lubricants outside India. Significant partnerships or specific contractual details (e.g., named OEM tie-ups, long-term supply agreements, or brand-licensing economics) are not available in the provided context; therefore, null.

GP Petroleums Limited Financial Statement Overview

Summary

The company exhibits operational efficiency with stable EBIT and EBITDA margins, but faces challenges in revenue growth and cash generation. The strong balance sheet and low leverage provide a solid foundation, yet declining cash flows and profitability margins highlight areas for improvement.

Income Statement

The company has shown a decline in total revenue in the latest year compared to previous years, with the revenue dropping from 2024 to 2025. Gross profit margin and net profit margin have also decreased slightly, indicating reduced profitability. However, EBIT and EBITDA margins remain relatively stable, suggesting operational efficiency is being maintained despite revenue challenges.

Balance Sheet

The balance sheet reflects a strong equity base with a high equity ratio, indicating financial stability. The debt-to-equity ratio is low, showing conservative leverage. Return on equity has slightly decreased, but remains healthy, demonstrating effective use of shareholder funds to generate income.

Cash Flow

The cash flow statement indicates issues with cash generation, as operating cash flow turned negative in 2025. The free cash flow has also deteriorated compared to previous years, reflecting potential liquidity challenges. The ratio of operating cash flow to net income has worsened, indicating inefficiencies in cash conversion.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	6.29B	6.09B	6.55B	7.90B	7.17B	6.09B
Gross Profit	844.22M	600.97M	846.57M	843.88M	925.11M	845.61M
EBITDA	415.01M	414.19M	439.68M	416.22M	323.54M	309.71M
Net Income	271.97M	263.24M	277.11M	251.89M	189.37M	177.24M
Balance Sheet
Total Assets	4.00B	4.05B	3.63B	3.45B	3.24B	3.97B
Cash, Cash Equivalents and Short-Term Investments	326.11M	339.46M	277.01M	9.35M	2.79M	146.70M
Total Debt	157.48M	333.36M	175.50M	309.95M	349.19M	1.22B
Total Liabilities	591.82M	764.72M	601.36M	691.30M	722.35M	1.63B
Stockholders Equity	3.41B	3.29B	3.03B	2.76B	2.51B	2.33B
Cash Flow
Free Cash Flow	121.28M	-97.42M	418.96M	102.13M	619.56M	-564.72M
Operating Cash Flow	133.07M	-89.64M	537.79M	113.77M	624.86M	-559.02M
Investing Cash Flow	61.15M	-67.03M	-363.77M	54.71M	150.19M	-17.90M
Financing Cash Flow	-195.05M	144.90M	-173.81M	-169.89M	-918.97M	711.94M

GP Petroleums Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 35.85
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:GULFPETRO, the sentiment is Negative. The current price of 35.85 is above the 20-day moving average (MA) of 31.72, above the 50-day MA of 32.73, and below the 200-day MA of 39.12, indicating a bearish trend. The MACD of -1.02 indicates Positive momentum. The RSI at 32.17 is Neutral, neither overbought nor oversold. The STOCH value of 5.32 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:GULFPETRO.

GP Petroleums Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CASTROLIND	77 Outperform	₹184.52B	20.06	―	6.86%	6.83%	8.79%
CHENNPETRO	75 Outperform	₹158.62B	3.11	―	0.55%	-4.61%	63.26%
GANDHAR	67 Neutral	₹12.78B	11.66	―	0.34%	-1.05%	-11.57%
CONFIPET	66 Neutral	₹10.50B	14.42	―	0.27%	37.24%	24.89%
PANAMAPET	66 Neutral	₹15.96B	9.40	―	1.71%	10.19%	-4.18%
Sector *	65 Neutral	$15.17B	7.61	4.09%	5.20%	3.87%	-62.32%
GULFPETRO	62 Neutral	₹1.45B	8.42	―	―	3.59%	10.55%

GP Petroleums Limited Corporate Events

GP Petroleums says GST-driven share attachment hits promoter, not company

GP Petroleums Limited disclosed that promoter entity Nivaya Resources Private Limited has reported an involuntary transfer of 693,895 company shares from its demat account, which appear to have moved to SBICAP Securities Limited following a GST Department recovery notice attaching shares. The company emphasized that the action pertains solely to the promoter, involves no liability, penalty or restriction on GP Petroleums itself, and it is seeking clarifications from intermediaries while confirming there is no financial impact or regulatory non-compliance reported against the listed entity.

The development underscores that the issue arises from tax recovery proceedings directed at the promoter’s holdings rather than the company’s operations or balance sheet. GP Petroleums has formally recorded the event under disclosure norms and is pursuing additional details to maintain transparency for shareholders and regulators, aiming to limit any market concern over the promoter-level enforcement action.

GP Petroleums Moves Postal Ballot, E-Voting Fully Online for Shareholders

GP Petroleums Limited has notified the stock exchanges that it has published a newspaper advertisement informing shareholders about a postal ballot notice and the availability of an e-voting facility, which will be provided exclusively through electronic means. The move underscores the company’s continued shift toward digital communication and compliance practices in line with SEBI’s listing requirements, aiming to streamline shareholder participation and enhance governance standards, particularly for investors who engage with the company through remote voting mechanisms.