Buy Gulf Oil Lubricants, target price Rs 910: Emkay Global
Gulf Oil Lubricants India Ltd., incorporated in the year 2008, is a Mid Cap company (having a market cap of Rs 3376.92 Crore) operating in Petrochemicals sector.
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Promoters held 72.2 per cent stake in the company as of Sept 30, 2020, while FIIs held 11 per cent, DIIs 6.3 per cent and public and others 10.5 per cent.
Emkay Global has given a buy rating to Gulf Oil Lubricants with a target price of Rs 910. The share price moved down by 0.48 per cent from its previous close of Rs 675.70. The stock’s last traded price is Rs 672.45.
Gulf Oil Lubricants India Ltd., incorporated in the year 2008, is a Mid Cap company (having a market cap of Rs 3376.92 Crore) operating in Petrochemicals sector.
Financials For the quarter ended 30-09-2020, the company reported a Standalone sales of Rs 411.74 Crore, up 70.72 % from last quarter Sales of Rs 241.17 Crore and down -2.27 % from last year same quarter Sales of Rs 421.28 Crore Company reported net profit after tax of Rs 59.12 Crore in latest quarter.
Investment Rationale The brokerage values GOLI at 20x Sep’22E EPS and maintain our Buy rating with a revised TP of Rs910 (5% increase). Key risks are adverse base oil prices/currency, competition, economic slowdown, Covid-19 relapse and technological changes Promoter/FII Holdings Promoters held 72.2 per cent stake in the company as of Sept 30, 2020, while FIIs held 11 per cent, DIIs 6.3 per cent and public and others 10.5 per cent.
