Buy Gulf Oil Lubricants India, target price Rs 685: Emkay Global

Emkay Global has buy call on Gulf Oil Lubricants India with a target price of Rs 685. The current market price of Gulf Oil Lubricants India Ltd. is Rs 413.5.

Time period given by analyst is one year when Gulf Oil Lubricants India Ltd. price can reach defined target.

Gulf Oil Lubricants India Ltd., incorporated in the year 2008, is a Mid Cap company (having a market cap of Rs 2018.50 Crore) operating in Petrochemicals sector.


Gulf Oil Lubricants India Ltd. key Products/Revenue Segments include Lubricating Oils, Batteries, Greases, Other Operating Revenue and Scrap for the year ending 31-Mar-2021.


Financials
For the quarter ended 31-03-2022, the company reported a Consolidated Total Income of Rs 650.66 Crore, unchanged .00 % from last quarter Total Income of Rs Crore and unchanged .00 % from last year same quarter Total Income of Rs Crore. Company reported net profit after tax of Rs 63.39 Crore in latest quarter.

Investment Rationale
The brokerage maintains FY23E/FY24E EPS. It lowers Mar'23 DCF-based TP by 5% to Rs 685 primarily due to higher WACC of 11% vs. 10% earlier. Valuations remain very attractive given a double-digit earnings CAGR. Maintain Buy.

Promoter/FII Holdings
Promoters held 71.82 per cent stake in the company as of 31-Mar-2022, while FIIs owned 5.92 per cent, DIIs 5.06 per cent.