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Colour-codes for the 10 Year X-Ray Pro and Future Prospects tell you the fundamental strength of the stock.
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This tells you whether a stock is undervalued, using:
MRP - Fair value of the stock .
DP (Discount Price) - Sensible Buy price of the stock.
CMP - Current Market Price of the stock.
Margin of Safety - Difference from MRP to reduce risk.
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Buy/Sell stocks at the right time based on fundamentals.
Buy - Stock is below MRP & it is a good time to Buy.
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X

Castrol India Ltd.

Large Cap

Evaluated by 2282 users |

BSE

: 500870 |

NSE

: CASTROLIND |

Lubricants

Analysis of Financial Track Record

Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end
Consolidated basis
10 Year X-Ray
MoneyWorks4me Colour Coding
Value Creation To be investment worthy, a company has to create a shareholder value in excess of its cost of capital employed. VCI (Value Creation Index) shows how efficient has the company been in doing this.
Value Creation Index: Colour Rating Guide
  • >0.25 : Very Good
  • 0 to 0.25 : Somewhat Good
  • <0: Not Good
 Dec'03Dec'04Dec'05Dec'06Dec'07Dec'08Dec'09Dec'10Dec'11Dec'12
Return on Capital Employed
The return on capital employed gives a sense of how well a company is using its money to generate returns.
39.98%36.53%38.66%35.46%51.73%58.18%80.84%94.11%83.89%71.79%
Value Creation Index
The difference between ROCE and WACC as a Proportion of WACC reveals the extent of value created by a company.
Ie. (ROCE-WACC)/WACC
ROCE is Return on Capital Employed
WACC is Weighted Average Cost of Capital
5.613.551.881.342.833.427.587.385.61NA
Growth Parameters Growth Parameters help gauge a company's growth in the past 10 years. A value creating company needs to grow at a sustainable pace to continue creating value.
For Net Sales and EPS Growth Rate
  • >12% : Very Good
  • 8% to 12% : Somewhat Good
  • <8% : Not Good
For Debt To CFO
  • 0 to <1.5 : Very Good
  • 1.5 to <3 : Somewhat Good
  • >3 or <0: Not Good
Net Sales (Rs. Cr.)
Net Sales is calculated by deducting excise duty, sales tax and other such deductible indirect taxes from the gross sales of a company.
1,1711,3101,4301,7521,8882,2062,3182,7352,9933,121
Y-o-Y Gr. Rt.-11.9%9.2%22.5%7.8%16.8%5.1%18%9.5%4.3%
Adjusted EPS (Rs.)
Adjusted Earning per Share is the company’s net profit per share after adjusting for extra-ordinary/exceptional items
2.722.62.912.864.415.317.919.949.799.07
Y-o-Y Gr. Rt.--4.4%11.9%-1.7%54.2%20.4%49%25.7%-1.5%-7.4%
Book Value per Share (Rs.)
The total value that a company will fetch upon liquidation (if it is closed down), after settling all obligations is called its Book Value. Book value of a company includes only tangible assets. Book value allocated to each outstanding share is called Book Value per share
7.047.287.898.458.79.6210.0111.1912.2213.13
Adjusted Net Profit Adjusted Net Profit is a measure of company's profitability after accounting for all costs and adjusting for one time events. 135129144141218263391492484449
Net Op. Cash Flow (Rs. Cr.)
This refers to the amount of cash a company generates from the revenues less operating expenses.
10516311193.8357162568510352467
Debt to Cash Flow from Ops
Debt to CFO (Cash Flow from Operations) conveys the number of years it will take for a company to repay its debt, given the cash generated from operations.
CFO: It is the amount of cash generated by the company through its core business operations without looking at the impact of its capital structure. It indicates whether the company is able to generate sufficient cash from its operations to maintain and run its operations.
0.040.020.030.030.010.020000
CAGR
The Growth rate helps you understand how the company has performed over different time frames.
CAGR Colour Code Guide
CAGR Colour Code Guide
  • >12% : Very Good
  • 8% to 12% : Somewhat Good
  • <8% : Not Good
  9 yrs 5 yrs 3 yrs 1 yr
Net Sales
Net Sales is calculated by deducting excise duty, sales tax and other such deductible indirect taxes from the gross sales of a company.
11.5%10.6%10.4%4.3%
Adjusted EPS
Adjusted Earning per Share is the Company’s net profit per share after adjusting for extra-ordinary/exceptional items.
14.3%15.5%4.7%-7.4%
Book Value per Share
The total value that a company will fetch upon liquidation (if it is closed down), after settling all obligations is called its Book Value. Book value of a company includes only tangible assets. Book value allocated to each outstanding share is called Book Value per share
7.28.69.57.5
Key Financial Parameter The key financial ratios show the growth and sustainability of the Value Creation Index.
Performance Ratios: Colour Rating Guide
  • >12% : Very Good
  • 8% to 12% : Somewhat Good
  • <8% : Not Good
Debt to Equity Colour Rating Guide
  • 0 to 1 : Very Good
  • >1 to 2 : Somewhat Good
  • >2 or <0: Not Good
Return on Equity (%)
Return on Equity shows the amount of net profit generated as a percentage of shareholders equity. 
ROE measures a company's profitability over the money shareholders have invested. 
39.9936.3838.433551.4557.9780.5893.7883.6971.59
Operating Profit Margin (%)
Operating Profit Margin shows how much profit a company makes (before interest payment and taxes) on sales. It is advisable to look at the change in a company’s operating margin over time and compare the company's yearly or quarterly numbers to those of its competitors.
17.5315.8414.9412.5517.4518.1325.4326.5822.5320.01
Net Profit Margin (%)
NPM (Net Profit Margin) is the ratio of profit, net of taxes and interests to sales. It is advisable to look at changes in a company’s NPM over time and to compare them with the competitor’s NPM.
11.519.8310.088.0711.5511.916.8717.9816.1814.38
Debt to Equity
This ratio indicates the ratio of equity to debt the company employs to finance its operating assets.
0.010.010.010.010.010.010000
Working Capital Days
This is the number of days that a company will take to convert its working capital into revenue.
84828585786966586165
Cash Conversion Cycle
Cash Conversion Cycle is a company's net working capital (creditors, debtors and inventory) expressed in terms of days
-73510-9-6-19-30-18-11
What do we look at?
Management Assessment: An assessment of the trustworthiness of the management based
on 5 important parameters. These parameters are colour coded as Green (Very Good),
Orange (Somewhat Good) and Red (Not Good)
Percentage Holding
71.03%
14.19%
14.78%

Pledged *0.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.00
*  Pledged shares as % of Promoter's holding (%)

The 10 YEAR X-RAY of Castrol indicates mixed performances in last 10 years. The Net Sales of the company has grown from Rs 1164 crores in FY2001 to Rs 2735 crores in FY 2010 with CAGR of 9.95%. In the same period, EPS has shown CAGR of 18.24%. CIL’s EPS stagnated till FY 2006 but after that the company has shown a good growth in EPS. In last 5 years, Its EPS has grown by more than 27% CAGR. BVPS has not shown much of an increase over the last ten ye ... Read more

The 10 YEAR X-RAY of Castrol indicates mixed performances in last 10 years. The Net Sales of the company has grown from Rs 1164 crores in FY2001 to Rs 2735 crores in FY 2010 with CAGR of 9.95%. In the same period, EPS has shown CAGR of 18.24%. CIL’s EPS stagnated till FY 2006 but after that the company has shown a good growth in EPS. In last 5 years, Its EPS has grown by more than 27% CAGR. BVPS has not shown much of an increase over the last ten years; it has shown CAGR increase of 3.77% over last 10 years. This is mainly because of higher payout ratio close to 82% over last 10 years. CIL has been distributing most of its earning to investors as dividends than re-investing in the business.

The growth in EPS is more than growth in Net sales; this is mainly with increased margin in recent years. OPM and NPM had reduced from FY2001 to FY2006 and then it started increasing over FY2006 to FY2010. In the early years, the margins were higher because of regulation on base oil. After deregulation the margin started decreasing, but company had power to transfer this increased raw material cost to its customer. Over time the margins have started increasing again. Currently OPM stand at 26.58% and NPM stands at 17.99%.

Castrol has maintained an impressive ROIC year on year in last 10 years period and touched all time high of more than 94% in FY 2010. Castrol has maintained 6 years ROIC average at 64%. This high ROIC is mainly the result of its debt free operations and efficiency in utilizing funds by the management. The company has gone debt free since the last two years and has maintained a zero debt-to-net profit ratio since then. Historically the debt has been very low in CIL’s case. It has always operated below Debt to net profit ratio of 0.21. Thus the interest expenses have been quite low too. Debt to equity ratio also has been very less than 0.06 and currently it is 0.

The working capital has been managed quite well in case of CIL. The receivable and inventory days have been reduced over time and payable days have increased to some extent. Also the cash flow from operation has been in line with reported net profit over the years, showing good earning quality. Considering overall performance, we can say that the 10 YEAR X-RAY for the company is Green (Very good).

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