Buy Castrol India, target price Rs 269: IIFL Securities

IIFL Securities has initiated buy call on Castrol India with a target price of Rs 269. The current market price of Castrol India is Rs 262.65. The research firm said that Castrol India is expected to benefit from increasing demand for automotive lubricants, strong distribution network, and improving margins. The company has a strong presence in the Indian automotive lubricants market, with a market share of around 20%. The firm expects Castrol India's revenue to grow by 10% and net profit to grow by 12% over the next two years.

About Castrol India:

Castrol India Limited, part of BP Plc., is a leading lubricant manufacturer in India. Founded in 1909, the company offers a comprehensive portfolio of automotive, industrial, and marine lubricants, as well as specialty fluids and greases. With a strong brand reputation and a wide distribution network, Castrol India serves various sectors, including automotive, industrial, energy, and construction. The company has a manufacturing plant in Silvassa, Gujarat, and a research and development center in Mumbai. Castrol India is committed to innovation and sustainable practices, and is recognized for its high-quality products and exceptional customer service.

52 Week Price Trend:

Castrol India (NSE: CASTROLIND), a leading brand in automotive and industrial lubricants, has experienced significant stock price fluctuations over the past 52 weeks. The company's current market price (CMP) stands at Rs 262.65, indicating a healthy recovery from its 52-week low of Rs 107.4. However, it is still below the 52-week high of Rs 214. Castrol India's strong brand reputation, coupled with the gradual recovery of the automotive sector, has contributed to the recent surge in its share price. Investors are optimistic about the company's long-term prospects, driven by its innovative product offerings and expanding distribution network.

Stratzy's MOST Analysis:

Based on Stratzy's MOST framework, CASTROLIND has received an AAA rating, indicating a low fundamental risk. This rating is a result of the company's strong performance in the areas of management, outlook, safety, and trend. These factors include the company's experienced leadership team, positive growth prospects, exceptional safety record, and consistent performance over time. Overall, the AAA rating suggests that CASTROLIND is a financially sound company with a strong foundation for future growth and stability.

Company's Fundamentals:

Castrol India (NSE: CASTROLIND) is a publicly traded company listed on the National Stock Exchange (NSE) of India. Its Stock PE ratio of 22.72 indicates the current share price is 22.72 times the company's per-share earnings, providing insight into its valuation compared to its peers. The PB Ratio of 9.25 measures the company's market value against the book value of its assets, offering a perspective on its assets' pricing. Additionally, Castrol India's Dividend Yield of 3.78% represents the annual dividend income as a percentage of the current share price, providing shareholders with an indication of the company's income distribution policy.

Fundamental and Technical information provided in this blog were last updated on 21 Aug, 2024

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