Castrol India Ltd Stock Analysis

BSE: 500870 | NSE: CASTROLIND | Lubricants | Mid Cap

BSE Share Price Aug 12, 18:03
114.00 0.25 (0.22%)

DeciZen - Make an Informed Decision on Castrol India

Overall Rating

1. Quality

2. Valuation

Somewhat Undervalued

3. Price Trend

Castrol India Price Chart

P/E Ratio (SA) :
13.94
Market Cap :
11,276 Cr.
52-wk low :
99.2
52-wk high :
149.6
Bole Toh?

1. Is Castrol India Ltd a good quality company?

Past 10 year's financial track record analysis by Moneyworks4me indicates that Castrol India Ltd is a good quality company.

2. Is Castrol India Ltd undervalued or overvalued?

The key valuation ratios of Castrol India Ltd's currently when compared to its past seem to suggest it is in the Somewhat Undervalued zone.

3. Is Castrol India Ltd a good buy now?

The Price Trend analysis by MoneyWorks4Me indicates it is Weak which suggest that the price of Castrol India Ltd is likely to Fall in the short term. However, please check the rating on Quality and Valuation before investing.

10 Year X-Ray of Castrol India:

Analysis of Financial Track Record

Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end
Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end

Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end.

Financial track record gives insight into the company's performance on key parameters over the past ten years. MoneyWorks4me’s proprietary colour codes make it easy for retail investors to gauge the company’s past performance.
Castrol India Ltd has performed well in majority of the past ten years indicating its past ten year financial track record is very good

Value Creation

Value Creation Index Colour Code Guide

Dec'12Dec'13Dec'14Dec'15Dec'16Dec'17Dec'18Dec'19Dec'20Dec'21TTM
ROCE % 72.2%71.3%77%115.3%85.4%68.2%64.7%65.6%42%50%-
Value Creation Index 4.44.35.99.35.34.13.83.92.1NA-

Growth Parameters

Growth Parameters Colour Code Guide

Sales 3,1213,1803,3923,2983,3703,5843,9053,8772,9974,1924,641
YoY Gr. Rt. %-1.9%6.7%-2.8%2.2%6.4%8.9%-0.7%-22.7%39.9%-
Adj EPS 4.654.86.36.76.97.18.45.97.78.2
YoY Gr. Rt. %-10.3%-3.8%29.1%7.4%2.8%3.5%17.5%-30%31.5%-
BVPS (₹) 6.67.655.89.910.211.613.614.116.218.1
Adj Net Profit 451498479618664682706830581764809
Cash Flow from Ops. 467396548740664608549879893630-
Debt/CF from Ops. 0000000000-

CAGR

CAGR Colour Code Guide

9 Years 5 Years 3 Years 1 Years
Sales 3.3%4.5%2.4%39.9%
Adj EPS 6%2.8%2.6%31.5%
BVPS 10.610.511.715.3
Share Price -2.6% -9.7% -1% -15.6%

Key Financial Parameters

Performance Ratio Colour Code Guide

Dec'12Dec'13Dec'14Dec'15Dec'16Dec'17Dec'18Dec'19Dec'20Dec'21TTM
Return on Equity % 7271.176.7115.285.368.264.665.641.849.947.6
Op. Profit Mgn % 20.121.921.327.329.728.927.429.927.225.624.4
Net Profit Mgn % 14.515.714.118.719.71918.121.419.418.217.4
Debt to Equity 00000000000
Working Cap Days 65707270687286899874188
Cash Conv. Cycle -11-14-15-32-32-33-15-5-12-16101

Recent Performance Summary

Sales growth is good in last 4 quarters at 21.57%

Return on Equity has declined versus last 3 years average to 47.60%

Sales growth has been subdued in last 3 years 2.40%

Net Profit has been subdued in last 3 years 2.64%

Latest Financials - Castrol India Ltd.

Standalone Consolidated
TTM EPS (₹) 8.2 -
TTM Sales (₹ Cr.) 4,641 -
BVPS (₹.) 18.1 -
Reserves (₹ Cr.) 1,300 -
P/BV 6.28 -
PE 13.94 -
From the Market
52 Week Low / High (₹) 99.20 / 149.55
All Time Low / High (₹) 1.92 / 272.00
Market Cap (₹ Cr.) 11,276
Equity (₹ Cr.) 494.6
Face Value (₹) 5
Industry PE 11.9

Management X-Ray of Castrol India :

Shareholding Pattern

Promoter's Holding & Share Pledging

Pledged *0.000.000.000.000.000.000.000.000.000.00
* Pledged shares as % of Promoter's holding (%)

Event Update

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Analyst's Notes

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Key Ratios of Castrol India

Adj EPS (Rs.)
Sales (Cr.)
ROE (%)
ROCE (%)

News

About Castrol India Ltd

Castrol was founded by Charles “Cheers” Wakefield under the name of ‘CC Wakefield & Company’. In 1899 Charles left a job at Vacuum Oil to start a new business selling lubricants for trains and heavy machinery.

Early in the new century, Wakefield took a personal interest in two sporty new motorised contraptions - the automobile and the aeroplane. The company started developing lubricants for these new engines, which needed oils that were runny enough to work from cold at start-up and thick enough to keep working at very high temperatures. Wakefield researchers found that adding a measure of castor oil, a vegetable oil made from castor beans, did the trick nicely. They called the new product “Castrol.” In 1919 John Alcock and Arthur Brown choose Castrol to lubricate their engine on the first trans-Atlantic flight.

Having helped pioneer a new kind of motor oil, CC Wakefield pioneered a new method of getting customers to notice the product: sponsorship. The Castrol name appeared on banners and flags at competitive aviation events, auto races and at attempts to break the land speed record.

By 1960, the name of the motor oil had all but eclipsed that of the company’s larger-than-life founder, and so ‘CC Wakefield& Company’ became, simply, Castrol Ltd. In 1966 The Burmah Oil Company bought Castrol and in 2000 Burmah-Castrol was purchased by BP.

Business area of the company

Castrol India is an India-based company engaged in providing coke and refined petroleum products. The company is involved in manufacturing lubricating oils.

Products offered by the company

  • Automotive lubricants
  • Industrial lubricants
  • Marine & energy lubricants

Awards

2017

  • ‘Eklavya’, Castrol India’s programme on skill development for mechanics, was awarded the runners-up prize at FICCI CSR Awards 2017.
  • Castrol India received the Golden Peacock Special Commendation for Excellence in Corporate Governance 2017 at a special ceremony in the UK.
  • Castrol India Limited was recognized as Best Company in the ‘Specialty Oils and Lubricants’ sector at the Dun & Bradstreet Corporate Awards 2017.
    Castrol India’s road safety practices won the Best Practice Award at the Ramkrishna Bajaj ‘Making Quality Happen’ 2017 seminar.
  • Castrol India was winner of the INDIASTAR & PACMACHINE 2017 National Award in packaging design for the development of a unique e-promotional cap used in small retail packs.
  • Castrol India’s Silvassa plant was the recipient of the 16th Annual Greentech Safety Award for excellence in safety for the third consecutive year.

2018

  • Castrol India was the winner of the IMC Ramkrishna Bajaj National Quality Awards 2018 in the manufacturing category.
  • Castrol India won the Golden Peacock Innovation Management Award 2018 for fostering a culture of innovativeness.
  • Castrol India’s Silvassa plant became the first lubricants plant in India to be awarded the coveted Ford Q1 Certification.
  • Castrol India’s Patalganga plant was the winner of the Golden Peacock Occupational Health & Safety Award 2018 in the industrial sector.
  • Castrol India’s Silvassa and Paharpur plants were the recipients of the 17th Annual Greentech Safety Award 2018. Silvassa plant (first from left) won it for the fourth consecutive year.

2019

  • Castrol India’s manufacturing plants won several recognitions for their exemplary safety performance. The Patalganga plant was the winner of National Safety Council of India Award, the Paharpur plant received the Indian Chamber of Commerce National Occupational Health & Safety Gold Award (image on left) and the Silvassa plant received the GreenTech Safety Award for the fifth consecutive year.
  • Rashmi Joshi, Chief Financial Officer and Wholetime Director, Castrol India was awarded the overall winner of the Treasury Today Asia Woman of the Year Award at the Adam Smith Awards Asia 2019. She was recognized for demonstrating exceptional innovation in the corporate treasury domain.
  • Castrol CONNEKT digital tool won two awards at the ACEF Global Customer Engagement Awards in the category of Mobile Marketing for successful use of technology and marketing effectiveness.
  • Castrol CRB TURBOMAX Truck Aasana campaign was recognized across several national and international platforms, including a gold in the prestigious APAC Effie Awards 2019 in Automotive category (image on left), gold at the India Effie Award in the Automobiles and Experiential Marketing categories and at ACEF Global Customer Engagement Awards 2019 for PR effectiveness.
  • Castrol Sarathi Mitra, one of Castrol India’s flagship programmes for CSR, was recognized with the Grant Thornton SABERA Award 2019 for its positive impact towards the trucker community.
  • Kedar Apte, Vice President - Marketing, Castrol India was acknowledged as the CMO of the year for social responsibility at the Pitch CMO Awards 2020 for leadership in purpose-led marketing.

Milestones

  • 2008: Castrol launched its Marine Bio range with improved environmental performance to help protect ocean life
  • 2012: NASA's Curiosity rover began its mission on Mars, lubricated by a Castrol grease
  • 2013: Castrol Industrial lubricates NASAs wheels of success-began its exciting mission on Mars in early August, an innovative Castrol Industrial lubricant called Castrol Braycote 601 EF helped ensure the smooth operation of Curiosity, from its wheels to its cameras
  • 2014: Castrol India and Triumph Motorcycles signed an agreement for a partnership in India.
  • 2015: Castrol launched Nexcel, an oil change system designed to reduce tailpipe emissions, recycle used oil and simplify oil changes
  • 2017: Castrol launched its first bio-synthetic engine oil with 25% renewable plant-based oil
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