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ICICI Securities Report
Gulf Oil Lubricants India Ltd. reported a stellar set of Q4 numbers with Ebitda/profit after tax growth of 31%/37% YoY, its second-best in the last eight quarters (barring the low base driven growth seen in Q1 FY23).
Volume growth of 15.6% YoY was also solid and has been delivering as per management’s guidance of above-industry/peer growth over the next two–three years.
Core lubricant/Adblue volumes of 37 million litres each (+2.8/32.1% YoY) were broadly in-line, but Ebitda margin of 13.7% (highest in eight quarters, up 260 bps YoY/20 bps QoQ) was a pleasant surprise.
We continue to remain positive on Gulf Oil Lubricants’ prospects over the next two–three years, with steady volume growth, stronger margins and limited threat from enterprise values at least in the next three–five years.
Valuations of 13.2 times FY26E earnings per share/ 8.7 times EV/Ebitda are attractive. Maintain Buy.
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