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Last Updated on: 22 November, 2024
Author: Getaka|Social: Getaka Financial Services X (Earlier Twitter) Profile Getaka Financial Services LinkedIn Logo

Gulf Oil Lubricants India Ltd: Intrinsic Value and Fundamental Analysis

Share Price and Basic Stock Data

Last Updated: November 21, 2024, 10:06 pm

Market Cap 5,115 Cr.
Current Price 1,038
High / Low1,514/625
Stock P/E15.1
Book Value 279
Dividend Yield3.47 %
ROCE27.2 %
ROE24.7 %
Face Value 2.00
PEG Ratio2.47

Stock P/E, Current Price, and Intrinsic Value Over Time

View Share Price Target for Gulf Oil Lubricants India Ltd

Competitors of Gulf Oil Lubricants India Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
Industry Average0 Cr0000%0.59%0.49%0

All Competitor Stocks of Gulf Oil Lubricants India Ltd

Quarterly Result

MonthDec 2020Mar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023
Sales482517417534602639706720781792812802817
Expenses399439375456525550621639691705719702706
Operating Profit8378427777898580908893100111
OPM %17%15%10%14%13%14%12%11%12%11%11%13%14%
Other Income1213111111129101414141717
Interest1240051010107478
Depreciation9889999101011111111
Profit before tax868141797986747084849299108
Tax %25%26%25%26%25%26%26%26%26%26%26%26%26%
Net Profit64603059596355526362687481
EPS in Rs12.7311.886.0311.6411.6312.5711.2910.6412.7812.6813.9315.0016.45

Last Updated: Unknown

Quarterly Chart

Profit & Loss - Annual Report

Last Updated: Unknown

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023TTM
Sales0009671,0111,0871,3321,7061,6441,6522,1922,9993,187
Expenses0008388529091,0971,4231,3571,3871,9062,6562,816
Operating Profit00-0129159178236283287265286343371
OPM %13%16%16%18%17%17%16%13%11%12%
Other Income0009182026293552444759
Interest0001818109152515103829
Depreciation00056710223334364042
Profit before tax00-0116153181243275265269284313359
Tax %0%33%35%35%35%35%23%26%26%26%
Net Profit00-077100118159178203200211232267
EPS in Rs0.000.00-2.0015.6220.2423.6931.9035.7040.4239.7741.8647.3954.39
Dividend Payout %0%35%35%36%33%32%35%40%12%53%

Profit & Loss Yearly Chart

YoY Net Profit Growth

Year2015-20162016-20172017-20182018-20192019-20202020-20212021-20222022-2023
YoY Net Profit Growth (%)29.87%18.00%34.75%11.95%14.04%-1.48%5.50%9.95%
Change in YoY Net Profit Growth (%)0.00%-11.87%16.75%-22.80%2.10%-15.52%6.98%4.45%

Gulf Oil Lubricants India Ltd has shown an inconsistent trend in YoY Net Profit Growth (%) in the last 8 years from 2015-2016 to 2022-2023.

Growth

Compounded Sales Growth
10 Years:%
5 Years:14%
3 Years:26%
TTM:7%
Compounded Profit Growth
10 Years:181%
5 Years:11%
3 Years:15%
TTM:27%
Stock Price CAGR
10 Years:11%
5 Years:4%
3 Years:21%
1 Year:64%
Return on Equity
10 Years:28%
5 Years:24%
3 Years:23%
Last Year:25%

Last Updated: Unknown

Balance Sheet

Last Updated: November 14, 2024, 11:37 pm

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Sep 2024
Equity Capital0.050.051010101010101010101010
Reserves0-01772393444575777518591,0331,1691,2851,362
Borrowings00215195178248283376211390373358452
Other Liabilities034162205206313273309365360520652714
Total Liabilities0345656497381,0291,1421,4471,4461,7922,0722,3042,537
Fixed Assets03489107118260270280254273277250249
CWIP008229611433916
Investments00334455203688193194
Other Assets004645375877598671,1611,1681,4801,7031,8512,078
Total Assets0345656497381,0291,1421,4471,4461,7922,0722,3042,537

Reserves and Borrowings Chart

Cash Flow

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Cash from Operating Activity +01913111813411017237194-24273348
Cash from Investing Activity +0-191-3-10-51-221730-1730-58
Cash from Financing Activity +0020-79-599-295-27798-202-238
Net Cash Flow0-0152366568-34259-545710252

Free Cash Flow

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Free Cash Flow0.000.000.00-86.00-36.000.00-12.000.00-89.0054.00-104.00-30.00

Free Cash Flow = Income Generated from Operational Activities - Borrowings - Capital Work in Progress (CWIP)

Consistent positive free cash flow is crucial for businesses as it indicates their ability to generate cash from their core operations. It provides financial flexibility, allowing companies to invest in growth opportunities, pay dividends to shareholders, reduce debt, and weather economic downturns more effectively.

Free Cash Flow Chart

Financial Efficiency Indicators

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Debtor Days43383737324242495054
Inventory Days97117103140149163175152105104
Days Payable669791132861291348687106
Cash Conversion Cycle745848459576821156852
Working Capital Days45343034636463886355
ROCE %0%-22%67%40%39%40%37%29%25%23%23%27%

Financial Efficiency Indicators Chart

Share Holding Pattern

MonthSep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024
Promoters71.82%71.82%71.82%72.02%72.02%72.02%72.02%72.00%71.94%71.94%71.80%71.76%
FIIs9.17%6.19%5.18%3.66%3.64%3.41%3.57%3.69%4.42%4.98%7.08%5.65%
DIIs5.18%5.04%5.80%7.00%6.98%7.03%7.02%6.40%5.77%4.03%5.02%5.87%
Government0.30%0.30%0.30%0.30%0.30%0.30%0.30%0.30%0.30%0.30%0.30%0.30%
Public13.53%16.65%16.90%17.02%17.07%17.24%17.10%17.58%17.56%18.78%15.80%16.42%
No. of Shareholders66,84659,54782,34267,49464,72662,22060,18659,10058,01260,82257,92870,211

Shareholding Pattern Chart

No. of Shareholders

Mutual Fund Holdings

Fund NameNo of SharesAUM (%)Amount Invested (Cr)Previous Number of SharesPrevious DatePercentage Change
Franklin India Smaller Companies Fund731,1190.4745.65731,1192024-11-210%
Franklin India Flexi Cap Fund245,2200.1315.31731,1192024-11-21-66.46%
Bandhan Small Cap Fund208,6820.5813.03731,1192024-11-21-71.46%
JM Flexicap Fund180,6291.5711.28731,1192024-11-21-75.29%
JM Value Fund79,8041.734.98731,1192024-11-21-89.08%

ROCE Trend

EPS Trend

Key Financial Ratios

MonthMar 24Mar 23Mar 22
FaceValue2.002.002.00
Basic EPS (Rs.)62.7647.3041.89
Diluted EPS (Rs.)62.1747.1641.63
Cash EPS (Rs.)73.0055.4748.94
Book Value[Excl.RevalReserv]/Share (Rs.)277.92240.41206.77
Book Value[Incl.RevalReserv]/Share (Rs.)277.92240.41206.77
Revenue From Operations / Share (Rs.)671.40611.85434.62
PBDIT / Share (Rs.)99.4879.5665.38
PBIT / Share (Rs.)89.1671.4758.29
PBT / Share (Rs.)83.8963.8056.39
Net Profit / Share (Rs.)62.6847.3941.86
NP After MI And SOA / Share (Rs.)62.6347.3941.85
PBDIT Margin (%)14.8113.0015.04
PBIT Margin (%)13.2711.6813.41
PBT Margin (%)12.4910.4212.97
Net Profit Margin (%)9.337.749.63
NP After MI And SOA Margin (%)9.327.749.63
Return on Networth / Equity (%)23.7819.7120.24
Return on Capital Employeed (%)30.7328.5627.18
Return On Assets (%)12.7811.2111.77
Total Debt / Equity (X)0.250.280.34
Asset Turnover Ratio (%)1.471.550.00
Current Ratio (X)1.941.972.03
Quick Ratio (X)1.441.421.37
Inventory Turnover Ratio (X)3.673.280.00
Dividend Payout Ratio (NP) (%)65.3610.550.00
Dividend Payout Ratio (CP) (%)56.119.010.00
Earning Retention Ratio (%)34.6489.450.00
Cash Earning Retention Ratio (%)43.8990.990.00
Interest Coverage Ratio (X)18.8810.3634.27
Interest Coverage Ratio (Post Tax) (X)12.907.1722.94
Enterprise Value (Cr.)4265.401659.591908.36
EV / Net Operating Revenue (X)1.290.550.87
EV / EBITDA (X)8.724.265.79
MarketCap / Net Operating Revenue (X)1.400.660.96
Retention Ratios (%)34.6389.440.00
Price / BV (X)3.571.682.04
Price / Net Operating Revenue (X)1.400.660.96
EarningsYield0.060.110.09

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value of Gulf Oil Lubricants India Ltd as of November 22, 2024 is: 1,076.69

Calculation basis:

  • Fair value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100)
  • P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
  • Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance.
  • Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
  • Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.

This formula allows us to gauge the fair value of the stock by analyzing its fundamental indicators.

As of November 22, 2024, Gulf Oil Lubricants India Ltd is Undervalued by 3.73% compared to the current share price 1,038.00

Intrinsic Value of Gulf Oil Lubricants India Ltd as of November 22, 2024 is: 1,142.55

Calculation basis:

  • Intrinsic value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100) * (1 + EPS CAGR for Last 5 Years)
  • P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
  • Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance.
  • Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
  • Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.
  • EPS CAGR (Compound Annual Growth Rate): Represents the geometric mean growth rate of earnings per share over the last 5 years. It provides insight into the historical growth trajectory of the company's earnings.

This formula allows us to gauge the intrinsic value of the stock by analyzing its fundamental indicators along with EPS growth.

As of November 22, 2024, Gulf Oil Lubricants India Ltd is Undervalued by 10.07% compared to the current share price 1,038.00

Last 5 Year EPS CAGR: 6.12%

*Investments are subject to market risks

Strength and Weakness

StrengthWeakness
  1. The stock has a high average ROCE of 27.33%, which is a positive sign.
  2. The company has higher reserves (634.85 cr) compared to borrowings (252.23 cr), indicating strong financial stability.
  3. The company has shown consistent growth in sales (75.38 cr) and profit (189.08 cr) over the years.
  1. The stock has a high average Working Capital Days of 44.92, which may not be favorable.
  2. The stock has a high average Cash Conversion Cycle of 59.42, which may not be favorable.

Stock Analysis

  • Considering all of the following key financial indicators, prospective investors are encouraged to conduct thorough research and seek professional guidance before considering any investment in Gulf Oil Lubricants India Ltd:
    1. Net Profit Margin: 9.33%
      • Net Profit Margin: This metric indicates the percentage of profit a company makes from its total revenue. A higher net profit margin is generally desirable as it reflects better profitability.
    2. ROCE: 30.73% (Industry Average ROCE: 0.59%)
      • ROCE (Return on Capital Employed): ROCE measures a company's profitability and the efficiency with which its capital is employed. A higher ROCE indicates efficient use of capital.
    3. ROE%: 23.78% (Industry Average ROE: 0.49%)
      • ROE (Return on Equity): ROE measures a company's profitability relative to shareholders' equity. A higher ROE indicates efficient use of shareholders' funds.
    4. Interest Coverage Ratio (Post Tax): 12.9
      • Interest Coverage Ratio: The interest coverage ratio measures a company's ability to cover its interest payments on outstanding debt. A ratio greater than 2 is generally considered healthy as it indicates the company can meet its interest obligations comfortably.
    5. Quick Ratio: 1.44
      • Quick Ratio: The quick ratio assesses a company's ability to cover its short-term liabilities with its most liquid assets. A ratio higher than 1 suggests the company can meet its short-term obligations without relying heavily on inventory.
    6. Stock P/E: 15.1 (Industry average Stock P/E: 0)
      • Stock P/E (Price-to-Earnings) Ratio: The P/E ratio compares a company's current share price to its earnings per share. A lower P/E ratio relative to industry peers or historical values may indicate that the stock is undervalued.
    7. Total Debt / Equity: 0.25
      • Total Debt / Equity: This ratio measures a company's financial leverage by comparing its total debt to its total equity. A lower ratio indicates lower financial risk and greater financial stability.
    The current analysis is available for review. It's important to conduct thorough research and consider consulting with financial professionals before making any investment decisions.
    Stock Rating:

About the Company - Qualitative Analysis

Gulf Oil Lubricants India Ltd. is a Public Limited Listed company incorporated on 17/07/2008 and has its registered office in the State of Maharashtra, India. Company’s Corporate Identification Number(CIN) is L23203MH2008PLC267060 and registration number is 267060. Currently Company is involved in the business activities of Production of liquid and gaseous fuels, illuminating oils, lubricating oils or greases or other products from crude petroleum or bituminous minerals. Company’s Total Operating Revenue is Rs. 2191.64 Cr. and Equity Capital is Rs. 10.09 Cr. for the Year ended 31/03/2022.
INDUSTRYADDRESSCONTACT
LubricantsIN Centre, Mumbai Maharashtra 400093secretarial@gulfoil.co.in
http://www.gulfoilindia.com
Management
NamePosition Held
Mr. Sanjay G HindujaChairman & Non-Exe.Director
Mr. Ravi ChawlaManaging Director & CEO
Mr. Shom A HindujaNon Executive Director
Mr. Munesh KhannaInd. Non-Executive Director
Mr. Arvind UppalInd. Non-Executive Director
Mrs. Manju AgarwalInd. Non-Executive Director

FAQ

What is the latest intrinsic value of Gulf Oil Lubricants India Ltd?

The latest intrinsic value of Gulf Oil Lubricants India Ltd as on 21 November 2024 is ₹1076.69, which is 3.73% higher than the current market price of ₹1,038.00.

What is the Market Cap of Gulf Oil Lubricants India Ltd?

The Market Cap of Gulf Oil Lubricants India Ltd is 5,115 Cr..

What is the current Stock Price of Gulf Oil Lubricants India Ltd as on 21 November 2024?

The current stock price of Gulf Oil Lubricants India Ltd as on 21 November 2024 is ₹1,038.

What is the High / Low of Gulf Oil Lubricants India Ltd stocks in FY 2024?

In FY 2024, the High / Low of Gulf Oil Lubricants India Ltd stocks is 1,514/625.

What is the Stock P/E of Gulf Oil Lubricants India Ltd?

The Stock P/E of Gulf Oil Lubricants India Ltd is 15.1.

What is the Book Value of Gulf Oil Lubricants India Ltd?

The Book Value of Gulf Oil Lubricants India Ltd is 279.

What is the Dividend Yield of Gulf Oil Lubricants India Ltd?

The Dividend Yield of Gulf Oil Lubricants India Ltd is 3.47 %.

What is the ROCE of Gulf Oil Lubricants India Ltd?

The ROCE of Gulf Oil Lubricants India Ltd is 27.2 %.

What is the ROE of Gulf Oil Lubricants India Ltd?

The ROE of Gulf Oil Lubricants India Ltd is 24.7 %.

What is the Face Value of Gulf Oil Lubricants India Ltd?

The Face Value of Gulf Oil Lubricants India Ltd is 2.00.

About the Author

Author Avatar
Getaka

Getaka, CFA, a financial analyst with 15 years of experience in the industry. Getaka holds an MBA degree and the Chartered Financial Analyst designation, demonstrating his profound understanding of financial analysis and investment management. Throughout his career, he has conducted numerous financial analyses and due diligence processes for companies in the industry, and has a strong track record of identifying key trends and opportunities. He leverages his expertise to deliver a thorough financial analysis of a company, encompassing its financial performance, key ratios, future prospects, and risks. Getaka is committed to providing accurate, reliable, and trustworthy information to help readers make informed decisions about their finances and investments.

Disclaimer: This article is for informational purposes only and should not be construed as financial advice. The author is not a SEBI registered financial advisor and does not have any vested interest in Gulf Oil Lubricants India Ltd. Investors are advised to conduct their own due diligence and consult with a financial professional before making any investment decisions. The information provided in this article is based on publicly available data and the author's analysis, but it may not be comprehensive or up-to-date. The author and getaka.co.in are not responsible for any errors or omissions in the content. This article is not intended to promote any particular investment strategy or recommendation, and readers should consult with their own financial advisors before making any investment decisions. Data Source: NSE