Stocks To Buy: 54% Upside Seen In Gulf Oil Lubricants By Systematix, Maintains 'Buy' Rating, Know Why

Systematix Research Report

Gulf Oil Lubricants India Ltd. maintains its guidance to grow two times-three times of industry growth which they expect to be ~3% for the next few years. Margin is also at around ~Rs 26/litre which is closer to its peak margin of Rs 27/ltr.

Total Lubricant market size is nearly 2,600 mn kl and Gulf Oil Lubricants’ market share is ~6%. The company is witnessing strong volume growth from industrial and infrastructure segments led by a better-dedicated sales force and more acceptance of products.

L&T’s 50%-60% of lubes requirement is being met by Gulf Oil Lubricants. B2B (industrial, infra, OEMs, and marine) sales contribute 45% of the total volume while B2C remains at 55%.

The company has 85,000+ touch points, growing at a ~15% compound annual growth rate.

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