Castrol India Q3 Review: IDBI Capital Maintains 'Hold', Sees Limites Upside — Check Target Price

NDTV Profit’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer NDTV Profit’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.

IDBI Capital Report

Castrol India Ltd.’s performance was broadly in-line with our expectations. Castrol’s sales increased by 6% YoY, led by 9% YoY volume growth on the back of strong volume growth in the industrials segment (double digit) and CV segment (+8% YoY), while Personal Mobility grew 6% YoY.

Ebitda increased by 13% YoY to Rs 3.2 billion, with Ebitda margin expanding by 148 bps YoY to 23.7%, primarily aided by a fall in base oil prices and forex volatility, showcasing strong cost management.

The Management remains focused on expanding the distribution network and deepening penetration in the Industrials segment and high margin commercial vehicle segment deriving both value and volume growth.

We roll-over to CY27E estimates, valuing the stock at a PER of 18x CY27E EPS to derive a target price of Rs 211 and maintain our Hold rating on the stock.

Click on the attachment to read the full report:

DISCLAIMER

This report is authored by an external party. NDTV Profit does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of NDTV Profit.

Users have no license to copy, modify, or distribute the content without permission of the Original Owner.