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INVESTMENT INSIGHTS

Check Before You Invest : Arabian Petroleum Ltd

BSE: 0 NSE: ARABIAN ISIN: INE08NJ01024
  |   Sector:  Automobiles   |   Industry:  Lubricants

Snapshot

Q.1 Which industry/sub-sector does Arabian Petroleum Ltd belong to?
Arabian Petroleum Ltd belongs to the Automobiles sector, operating specifically within the Lubricants segment.
Q.2 Is Arabian Petroleum Ltd a good quality company?
Arabian Petroleum Ltd is a quality company, based on a 10 year financial track record.
Q.3 Is Arabian Petroleum Ltd undervalued or overvalued?
Arabian Petroleum Ltd appears Fair, as its key valuation ratios are in line with their past averages.
Q.4 Is Arabian Petroleum Ltd a good buy now?
Arabian Petroleum Ltd is not a good buy now, based on weak price trend analysis suggesting prices may fall. However, you need to check its quality and valuation before making a decision

Performance Analysis

Q.1 Revenue growth of Arabian Petroleum Ltd?
Arabian Petroleum Ltd revenue growth is 8.9% for FY-2025 , which is below its 5 year CAGR of 27.7% , indicating slower growth.
Q.2 Gross Profit margin of Arabian Petroleum Ltd?
Arabian Petroleum Ltd Gross profit margin which is the profit after deduction of direct costs, is 5.1% for FY-2025 , which is above its 5 year median of 4.5% , indicating increasing margins.
Q.3 Operating Profit Margin of Arabian Petroleum Ltd?
Arabian Petroleum Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 5.75% for FY-2025 , which is above its 5 year median of 5.36% indicating increasing margins.
Q.4 Net Profit Margin of Arabian Petroleum Ltd?
Arabian Petroleum Ltd Net Profit Margin is 3.2% for FY-2025 , is above with its 5 year median of 2.6%, indicating increasing margins.
Current Level Historic Median
Gross Profit Margin 5.1 4.5
Operating Profit Margin 5.75 5.36
Net Profit Margin 3.2 2.6
Q.5 Return on Asset of Arabian Petroleum Ltd?
Arabian Petroleum Ltd Return on Asset is 8.88%, which is above its 5 year historical median of 6.82%, indicating improved asset utilization efficiency.
Q.6 Return on Equity (ROE) of Arabian Petroleum Ltd?
Arabian Petroleum Ltd Return on equity is 17.01% for FY-2025 , which is below its historical median of 24.83%, indicating the business is making worse use of its shareholders capital.
Q.7 Return on capital employed (ROCE) of Arabian Petroleum Ltd?
Arabian Petroleum Ltd Return on capital employed is 17.82% for FY-2025 , which is above its estimated weighted average cost of capital(WACC) 14%, indicating value creation.
Q.8 Cash conversion cycle of Arabian Petroleum Ltd?
Arabian Petroleum Ltd Cash conversion cycle is 84 days, above its historical median of 68 days, indicating deteriorated working capital management. However, you need to compare this with its peers in the industry.
Current Level Historic Median
Asset Turnover 2.78 2.99
ROE 17.01 24.83
ROCE 17.82 17.15
Cash Conversion Cycle 84 days 68 days
Q.9 Debt to Equity ratio of Arabian Petroleum Ltd?
Arabian Petroleum Ltd Debt-to-Equity ratio is 0.48 , which is above with the industry average of 0.04 , indicating higher debt levels in the industry.
Q.10 Debt to cash flow from operations of Arabian Petroleum Ltd?
Arabian Petroleum Ltd Debt to cash flow from operations is 2.25 , which is at a moderate level.

Ownership & governance

Q.1 Promoter shareholding and pledge status of Arabian Petroleum Ltd?
Promoters hold 73.45% of the Arabian Petroleum Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 Revenue growth of Arabian Petroleum Ltd vs industry peers?
Arabian Petroleum Ltd revenue CAGR is 27.72% , compared to the industry median CAGR of 13.26% , indicating faster growth and gaining its market share.
Profit Metrics
Current Level Industry Median
Revenue 285.3 2,353.7
Gross Profit 14.6 251.1
Operating Profit 16.4 244.5
Net Profit 9.1 171.5
Operating Efficiency
Current Level Industry Median
Asset Turnover 2.78 1.72
ROE 17.01 20.76
ROCE 17.82 25.01
Cash Conversion Cycle (days) 84.11 59

Valuation & price assessment

Q.1 Stock return of Arabian Petroleum Ltd over the last decade?
Over the last 1 year(s), the stock has delivered a CAGR of 4.29% based on the current price.
Q.2 What return has the stock given over the last decade?
9Y 5Y 3Y 1Y
Share Price - - - 4.3%
Q.3 Valuation ratios of Arabian Petroleum Ltd vs historical?
The current P/E is higher that its historical median.
Q.4 How do the current valuation ratios measure up against the historic numbers and the current industry numbers?
Valuation Ratios Current Historic Median Industry Median
Price to Earnings 8.71 0.00 15.68
Price to Book 1.37 1.24 2.09
Price to Sales 0.28 0.22 0.70
EV to EBITDA 5.87 0.00 7.94

Check more companies

1. Castrol India
2. Gulf Oil Lubricant
3. Savita Oil Tech
4. Veedol Corporation
5. Panama Petrochem
6. Gandhar Oil Refinery
7. GP Petroleums
8. Arabian Petroleum
9. Sundrex Oil Company
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