I-Sec maintains Buy on Gulf Oil Lubricants India, raises target price to Rs 1,715

ICICI Securities has maintained its buy call on Gulf Oil Lubricants India with a revised target price of Rs 1,715 (earlier Rs 1,630). The current market price of Gulf Oil Lubricants is Rs 1213.0. Gulf Oil Lubricants India, incorporated in 2008, is a Mid Cap company with a market cap of Rs 5981.12 crore) operating in Petrochemicals sector.

Gulf Oil Lubricants India's key products/revenue Segments include Lubricating Oils, Greases, Batteries, Other Operating Revenue and Scrap for the year ending 31-Mar-2024.

Financials

For the quarter ended 31-03-2025, the company has reported a Consolidated Total Income of Rs 975.51 crore, up 2.21 % from last quarter Total Income of Rs 954.43 crore and up 9.71 % from last year same quarter Total Income of Rs 889.18 crore. The company has reported net profit after tax of Rs 92.85 crore in the latest quarter.

The company?s top management includes Mr.Sanjay G Hinduja, Mr.Ravi Chawla, Mr.Shom A Hinduja, Mr.Munesh Khanna, Mr.Arvind Uppal, Mrs.Manju Agarwal. Company has Price Waterhouse?LLP as its auditors. As on 31-03-2025, the company has a total of 5 crore shares outstanding.

Investment Rationale
Gulf Oil Lubricants India has seen its stock price rise an impressive 14% over the last three months. According to ICICI Securities, this is rooted in the market taking cognisance of Gulf Oil Lubricants? above-industry volume growth, superior margin profile and sticky brand loyalty demonstrated by customers towards its brands. There is marginal change in earnings of 1.5%/0.6% for FY26E/ FY27E. Valuations of 12.5x FY27E PER, 8.2x EV/EBITDA and 3.2x P/BV on FY27E EPS are rather attractive vs. peers (Castrol). The brokerage maintains the BUY rating with a revised target of Rs 1,715 (earlier Rs 1,630).

Promoter/FII Holdings
Promoters held 67.14 per cent stake in the company as of 31-Mar-2025, while FIIs owned 7.52 per cent, DIIs 9.53 per cent.