Savita Oil Technologies Limited (SOTL) AI Stock Analysis

• Market Cap: ₹22.13B
• Dividend Yield: 1.06%
• Average Volume (3M): 1.69K
• Price to Earnings (P/E): 17.3
• Beta (1Y): 1.34
• Revenue Growth: 5.84%
• EPS Growth: -17.92%
• Country: IN
• Employees: 584
• Sector: Energy
• Sector Strength: 52
• Industry: Chemicals - Specialty
• EPS (TTM): 5.54
• Shares Outstanding: 68,560,420
• 10 Day Avg. Volume: 1,452
• 30 Day Avg. Volume: 1,689
• PEG Ratio: -0.53
• Price to Book (P/B): 1.56
• Price to Sales (P/S): 0.68
• P/FCF Ratio: 111.87
• 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: 58 Neutral
• Price Target: ₹336.00 ▼(-11.75% Downside)
• Action: Reiterated Date: 11/25/25
• Date: Action: Reiterated 11/25/25

Savita Oil Technologies Limited's overall stock score is primarily influenced by its strong financial stability, despite concerns over declining profitability and cash flow conversion. The bearish technical indicators and moderate valuation further impact the score.

Positive Factors

Strong Balance Sheet

A high equity ratio and low leverage provide durable financial flexibility, lowering refinancing and solvency risk. This balance-sheet strength supports capital expenditure, working capital needs, and resilience through commodity-cycle volatility common to specialty lubricant manufacturers.

Consistent Revenue Growth

Near-term double-digit top-line growth indicates steady demand across end markets. Durable revenue expansion supports scale, pricing leverage, and capacity utilisation, helping absorb base-oil cost swings and enabling reinvestment into speciality grades with higher margins.

Diversified Product Mix

A broad portfolio across transformer, white, process, rubber and automotive lubricants reduces single-market dependence and smooths cyclicality. Diversification across industrial and utility customers supports steadier volumes and opportunities to upsell higher-value specialty formulations.

Negative Factors

Falling Net Profit Margin

A near-halving of net margin signals persistent pressure on cost structure or pricing power. If structural, this erodes retained earnings and limits capacity to fund growth internally, making long-term profitability and shareholder returns more vulnerable to raw-material shocks.

Weakened Cash Conversion

A sharp decline in FCF and poorer OCF-to-net-income conversion reduces liquidity available for capex, dividends or debt reduction. Sustained weak cash conversion increases reliance on external funding and limits strategic optionality in cyclical downturns.

Declining Return on Equity

ROE falling materially implies lower returns on shareholder capital, reflecting margin compression or asset inefficiency. Persistently low ROE can undermine reinvestment economics and investor confidence in management's ability to allocate capital effectively.

Savita Oil Technologies Limited Business Overview & Revenue Model

Company Description

Savita Oil Technologies Limited manufactures and sells petroleum products in India. It operates through two segments, Petroleum Products and Wind Power. The company offers transformer oils, white oils, liquid paraffins, lubricating oils, petrolatum and petroleum jellies, cable filling compounds, and optic fiber compounds. It also offers waxes and wax derivatives, such as microcrystalline, polyethylene, and oxidized polyethylene waxes, as well as wax emulsions. The company markets and sells its lubricating oils under the Savsol brand name. In addition, it generates and sells wind power. The company also exports its products. The company was formerly known as Savita Chemicals Limited and changed its name to Savita Oil Technologies Limited. Savita Oil Technologies Limited was incorporated in 1961 and is headquartered in Mumbai, India.

How the Company Makes Money

SOTL makes money by manufacturing and selling petroleum-based specialty products and lubricants to industrial and commercial customers. Its revenue model is primarily product-sales driven, with key streams typically coming from (1) transformer oils sold to utilities, EPCs, and power-equipment stakeholders for use in transformers and switchgear; (2) white oils (liquid paraffins) and other high-purity specialties sold for applications that require refined, low-impurity hydrocarbon inputs; (3) process oils/rubber oils supplied as inputs to industries such as rubber and polymer processing; and (4) automotive and industrial lubricants sold through business-to-business supply relationships and distribution channels. Earnings are influenced by sales volumes, product mix (higher-value specialty grades vs. more commoditized products), and the spread between selling prices and the cost of base oils and other feedstocks. Information on specific customer contracts, channel-wise revenue split, margins by product line, or named strategic partnerships is null.

Savita Oil Technologies Limited Financial Statement Overview

Summary

Savita Oil Technologies Limited shows strong financial stability with consistent revenue growth and a solid equity base. However, declining profitability margins and cash flow conversion are areas of concern.

Income Statement

Savita Oil Technologies Limited has shown consistent revenue growth over the years with a strong gross profit margin of 13.6% in the latest year. However, the net profit margin has decreased from 5.4% to 3.0% over the past year, indicating potential challenges in cost management or increased expenses.

Balance Sheet

The company maintains a solid equity base with an equity ratio of 70.4% and a low debt-to-equity ratio, reflecting financial stability. However, the return on equity has decreased from 16.0% to 6.8%, which might indicate declining profitability relative to shareholders’ equity.

Cash Flow

The cash flow analysis shows a decline in free cash flow from 739.7 million to 231.8 million. Additionally, the operating cash flow to net income ratio has dropped significantly, suggesting challenges in converting income into cash flow.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	40.03B	37.87B	37.08B	35.95B	29.14B	19.88B
Gross Profit	5.76B	6.08B	5.21B	6.02B	5.88B	5.17B
EBITDA	2.33B	2.08B	3.20B	3.45B	3.78B	3.48B
Net Income	1.38B	1.13B	2.01B	2.26B	2.60B	2.37B
Balance Sheet
Total Assets	25.75B	23.59B	24.77B	22.64B	19.89B	18.52B
Cash, Cash Equivalents and Short-Term Investments	1.74B	2.38B	3.07B	2.79B	4.50B	3.01B
Total Debt	0.00	258.00K	735.00K	1.17M	2.77M	4.79M
Total Liabilities	8.44B	6.98B	8.55B	8.15B	7.31B	7.89B
Stockholders Equity	17.30B	16.61B	16.22B	14.49B	12.58B	10.63B
Cash Flow
Free Cash Flow	769.78M	231.80M	739.68M	-960.67M	3.54B	1.23B
Operating Cash Flow	926.07M	614.32M	1.67B	-642.23M	3.69B	1.34B
Investing Cash Flow	-506.80M	-609.92M	178.01M	1.24B	-2.99B	-818.59M
Financing Cash Flow	-371.26M	-1.03B	-630.79M	-681.99M	-755.94M	-193.08M

Savita Oil Technologies Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 380.75
• 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:SOTL, the sentiment is Negative. The current price of 380.75 is above the 20-day moving average (MA) of 358.74, above the 50-day MA of 359.36, and below the 200-day MA of 389.13, indicating a bearish trend. The MACD of -7.75 indicates Positive momentum. The RSI at 32.59 is Neutral, neither overbought nor oversold. The STOCH value of 9.35 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:SOTL.

Savita Oil Technologies Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
PETRONET	75 Outperform	₹424.65B	12.25	―	3.58%	-13.73%	-7.20%
GULFOILLUB	73 Outperform	₹48.05B	19.36	―	3.96%	11.94%	10.23%
MRPL	71 Outperform	₹362.44B	4.59	―	2.04%	-11.96%	14.31%
GUJGASLTD	69 Neutral	₹252.05B	26.58	―	1.47%	-2.39%	-12.17%
KIRLOSENG	66 Neutral	₹213.28B	39.78	―	0.50%	11.85%	-3.66%
Sector *	65 Neutral	$15.17B	7.61	4.09%	5.20%	3.87%	-62.32%
SOTL	58 Neutral	₹22.13B	17.34	―	1.06%	5.84%	-17.92%

Savita Oil Technologies Limited Corporate Events

Savita Oil Commissions Second Phase of Synthetic Ester Plant at Mahad

Savita Oil Technologies has commissioned Phase 2 of its synthetic ester manufacturing plant at its Mahad facility, following the earlier start-up of Phase 1 in October 2023. The expanded, multipurpose plant is designed to produce synthetic esters for transformer fluid applications and can also manufacture esters for high-performance automotive and industrial lubricants.

With synthetic esters increasingly used as EV coolants, for immersion cooling of batteries and for data center thermal management due to their thermal stability and dielectric properties, this capacity addition strengthens Savita Oil Technologies’ position in advanced fluid solutions. The move is likely to enhance its ability to serve fast-growing segments in electrification and digital infrastructure, potentially supporting future growth and competitiveness in specialty lubricants and cooling fluids.

Savita Oil Publishes Q3 and 9M FY 2025-26 Investor Presentation

Savita Oil Technologies Limited has released its investor presentation for the third quarter and nine months of fiscal year 2025-26, providing shareholders and analysts with an update on business performance and financial trends. The disclosure underscores the company’s effort to maintain transparent communication with capital markets, although the presentation is explicitly framed as informational and non-binding, with no offer or solicitation for securities attached.

The company also reiterates that the materials may be incomplete and are based on information it deems reliable, while disavowing any warranty regarding accuracy or completeness. By highlighting the risks and uncertainties around future business prospects and profitability, Savita Oil signals to investors that actual outcomes may diverge from expectations due to factors such as competition, economic conditions and regulatory changes.