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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
Stock Ticker - BSE: 500870 | NSE: CASTROLIND

Castrol India Ltd: Intrinsic Value and Fundamental Analysis

Share Price and Basic Stock Data

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

Market Cap 18,419 Cr.
Current Price 186
High / Low284/134
Stock P/E20.5
Book Value 21.6
Dividend Yield4.03 %
ROCE56.7 %
ROE42.5 %
Face Value 5.00
PEG Ratio2.34

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

View Share Price Target for Castrol India Ltd

Competitors of Castrol India Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
Gandhar Oil Refinery (India) Ltd 2,011 Cr. 205345/18219.1 1230.24 %21.6 %14.7 % 2.00
Continental Petroleums Ltd 52.0 Cr. 93.6114/43.811.0 48.00.00 %16.6 %12.0 % 5.00
Tide Water Oil Co (I) Ltd 3,710 Cr. 2,1302,800/1,03124.9 4752.44 %23.7 %18.0 % 2.00
Savita Oil Technologies Ltd 3,296 Cr. 476655/31518.8 2350.84 %18.7 %12.4 % 2.00
Castrol India Ltd 18,419 Cr. 186284/13420.5 21.64.03 %56.7 %42.5 % 5.00
Industry Average6,859.00 Cr618.1218.86180.521.51%27.46%19.92%3.20

All Competitor Stocks of Castrol India Ltd

Quarterly Result

MonthJun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024
Sales8901,0731,0911,2361,2421,1211,1761,2941,3341,1831,2641,3251,398
Expenses6928118259189568649251,0031,0249149351,0321,075
Operating Profit198262266317286257251291310269329294322
OPM %22%24%24%26%23%23%21%22%23%23%26%22%23%
Other Income1381215141920221920222420
Interest1111012212223
Depreciation20202120202121232223252426
Profit before tax190250257311280254248288305264324292314
Tax %26%26%27%27%26%26%22%30%26%26%25%26%26%
Net Profit140186189228206187193202225194242216232
EPS in Rs1.421.881.912.312.091.891.952.052.281.972.452.192.35

Last Updated: September 12, 2024, 4:57 pm

Quarterly Chart

Profit & Loss - Annual Report

Last Updated: September 12, 2024, 4:57 pm

MonthDec 2012Dec 2013Dec 2014Dec 2015Dec 2016Dec 2017Dec 2018Dec 2019Dec 2020Dec 2021Dec 2022Dec 2023TTM
Sales3,1213,1803,3923,2983,3703,5843,9053,8772,9974,1924,7745,0755,170
Expenses2,4962,4922,6752,3972,3692,5512,8342,7232,1833,1253,6633,8773,956
Operating Profit6256887189011,0011,0331,0711,1548141,0671,1111,1981,214
OPM %20%22%21%27%30%29%27%30%27%25%23%24%23%
Other Income701064790868484646247678387
Interest2221111142489
Depreciation27303639454656708783819298
Profit before tax6667627269511,0401,0701,0981,1477851,0291,0931,1811,194
Tax %33%33%35%35%36%35%36%28%26%26%25%27%
Net Profit447509475615670692708827583758815864885
EPS in Rs4.525.144.806.226.786.997.168.365.897.668.248.748.96
Dividend Payout %116%68%78%72%81%100%70%66%93%72%79%86%

Profit & Loss Yearly Chart

YoY Net Profit Growth

Year
YoY Net Profit Growth (%)
Change in YoY Net Profit Growth (%)

No data available for trend analysis.

Growth

Compounded Sales Growth
10 Years:5%
5 Years:5%
3 Years:19%
TTM:6%
Compounded Profit Growth
10 Years:6%
5 Years:4%
3 Years:14%
TTM:10%
Stock Price CAGR
10 Years:-2%
5 Years:5%
3 Years:13%
1 Year:36%
Return on Equity
10 Years:58%
5 Years:48%
3 Years:46%
Last Year:43%

Last Updated: Unknown

Balance Sheet

Last Updated: Unknown

MonthDec 2012Dec 2013Dec 2014Dec 2015Dec 2016Dec 2017Dec 2018Dec 2019Dec 2020Dec 2021Dec 2022Dec 2023Jun 2024
Equity Capital495495247247247495495495495495495495495
Reserves1552572503287345266718729201,1511,3911,6271,639
Borrowings0000000007507773
Other Liabilities8308649951,0869079579418629791,0521,1331,2211,271
Total Liabilities1,4801,6151,4921,6621,8881,9772,1072,2292,3942,7043,0693,4203,478
Fixed Assets126143172149147139186200209201261259302
CWIP313216363757352744506110846
Investments0000000000325488488
Other Assets1,3221,4401,3041,4761,7041,7811,8862,0022,1412,4532,4222,5652,643
Total Assets1,4801,6151,4921,6621,8881,9772,1072,2292,3942,7043,0693,4203,478

Reserves and Borrowings Chart

Cash Flow

MonthDec 2012Dec 2013Dec 2014Dec 2015Dec 2016Dec 2017Dec 2018Dec 2019Dec 2020Dec 2021Dec 2022Dec 2023
Cash from Operating Activity +467396548740664608549879893630916853
Cash from Investing Activity +130-142-3315166-448-201-8362-251
Cash from Financing Activity +-433-407-697-478-568-656-567-628-564-558-608-664
Net Cash Flow3520-1632646310448-196128-10370-61

Free Cash Flow

MonthDec 2012Dec 2013Dec 2014Dec 2015Dec 2016Dec 2017Dec 2018Dec 2019Dec 2020Dec 2021Dec 2022Dec 2023
Free Cash Flow625.00688.00718.00901.001.001.001.001.00814.00-6.00-49.00-76.00

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

MonthDec 2012Dec 2013Dec 2014Dec 2015Dec 2016Dec 2017Dec 2018Dec 2019Dec 2020Dec 2021Dec 2022Dec 2023
Debtor Days252729262829374522272730
Inventory Days6376696982708764106877874
Days Payable8796101123118133112991571109998
Cash Conversion Cycle17-3-28-9-341210-30466
Working Capital Days-26-17-27-48-18-1655-34-7-7-5
ROCE %107%106%117%179%133%105%101%91%57%67%61%57%

Financial Efficiency Indicators Chart

Share Holding Pattern

MonthSep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024
Promoters51.00%51.00%51.00%51.00%51.00%51.00%51.00%51.00%51.00%51.00%51.00%51.00%
FIIs12.19%12.15%11.11%10.65%10.84%11.39%11.44%11.41%10.96%10.38%9.51%9.98%
DIIs16.47%16.35%15.99%16.25%16.11%16.57%16.56%16.52%16.51%15.92%16.37%16.11%
Public20.34%20.50%21.90%22.10%22.05%21.04%20.99%21.07%21.52%22.70%23.11%22.90%
No. of Shareholders2,55,1792,60,4272,96,5433,05,2652,98,4202,80,4842,85,7452,89,7763,01,5963,39,5973,77,2343,98,584

Shareholding Pattern Chart

No. of Shareholders

Mutual Fund Holdings

Fund NameNo of SharesAUM (%)Amount Invested (Cr)Previous Number of SharesPrevious DatePercentage Change
Tata Ethical Fund - Regular Plan1,026,3430.8726.91,026,3432024-11-160%
ICICI Prudential MidCap Fund1,000,0000.3926.211,026,3432024-11-16-2.57%
Tata Young Citizens Fund (After 7 Years) - Regular Plan200,0001.375.241,026,3432024-11-16-80.51%
Navi Nifty India Manufacturing Index Fund6,2860.340.161,026,3432024-11-16-99.39%

ROCE Trend

EPS Trend

Key Financial Ratios

MonthDec 23Dec 22Dec 21Dec 20Dec 19
FaceValue5.005.005.005.005.00
Basic EPS (Rs.)8.748.247.665.898.36
Diluted EPS (Rs.)8.748.247.665.898.36
Cash EPS (Rs.)9.679.068.506.779.07
Book Value[Excl.RevalReserv]/Share (Rs.)21.4519.0716.6414.3013.82
Book Value[Incl.RevalReserv]/Share (Rs.)21.4519.0716.6414.3013.82
Dividend / Share (Rs.)7.506.505.505.505.50
Revenue From Operations / Share (Rs.)51.3048.2742.3830.3039.19
PBDIT / Share (Rs.)12.9511.9111.278.8612.31
PBIT / Share (Rs.)12.0211.0910.437.9811.61
PBT / Share (Rs.)11.9411.0510.417.9411.60
Net Profit / Share (Rs.)8.748.247.665.898.36
PBDIT Margin (%)25.2424.6726.5829.2331.41
PBIT Margin (%)23.4222.9724.6126.3429.61
PBT Margin (%)23.2722.8824.5526.2029.58
Net Profit Margin (%)17.0217.0718.0819.4521.34
Return on Networth / Equity (%)40.7243.2246.0741.2160.52
Return on Capital Employeed (%)53.9156.2461.7854.5682.69
Return On Assets (%)25.2626.5628.0324.3537.12
Asset Turnover Ratio (%)1.561.651.641.301.79
Current Ratio (X)1.912.002.172.052.18
Quick Ratio (X)1.471.521.691.671.82
Inventory Turnover Ratio (X)4.514.444.383.503.91
Dividend Payout Ratio (NP) (%)74.4072.8071.7693.3265.75
Dividend Payout Ratio (CP) (%)67.2166.1964.7081.2460.64
Earning Retention Ratio (%)25.6027.2028.246.6834.25
Cash Earning Retention Ratio (%)32.7933.8135.3018.7639.36
Interest Coverage Ratio (X)170.13293.80462.40210.611023.39
Interest Coverage Ratio (Post Tax) (X)115.76204.28315.56141.13696.27
Enterprise Value (Cr.)16584.5910963.3010851.1310911.7711848.27
EV / Net Operating Revenue (X)3.272.302.593.643.06
EV / EBITDA (X)12.959.319.7412.459.73
MarketCap / Net Operating Revenue (X)3.502.552.904.073.30
Retention Ratios (%)25.5927.1928.236.6734.24
Price / BV (X)8.386.467.388.629.36
Price / Net Operating Revenue (X)3.502.552.904.073.30
EarningsYield0.040.060.060.040.06

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value of Castrol India Ltd as of November 22, 2024 is: 195.77

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, Castrol India Ltd is Undervalued by 5.25% compared to the current share price 186.00

Intrinsic Value of Castrol India Ltd as of November 22, 2024 is: 212.90

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, Castrol India Ltd is Undervalued by 14.46% compared to the current share price 186.00

Last 5 Year EPS CAGR: 8.75%

*Investments are subject to market risks

Strength and Weakness

StrengthWeakness
  1. The stock has a high average ROCE of 98.42%, which is a positive sign.
  2. The stock has a low average Working Capital Days of -16.25, which is a positive sign.
  3. The stock has a low average Cash Conversion Cycle of -4.83, which is a positive sign.
  4. The company has higher reserves (809.31 cr) compared to borrowings (15.92 cr), indicating strong financial stability.
  5. The company has shown consistent growth in sales (3.38 cr) and profit (299.85 cr) over the years.

    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 Castrol India Ltd:
      1. Net Profit Margin: 17.02%
        • 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: 53.91% (Industry Average ROCE: 27.46%)
        • 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%: 40.72% (Industry Average ROE: 19.92%)
        • 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): 115.76
        • 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: 1.47
        • 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: 20.5 (Industry average Stock P/E: 18.86)
        • 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
        • 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

    Castrol India Ltd. is a Public Limited Listed company incorporated on 31/05/1979 and has its registered office in the State of Maharashtra, India. Company’s Corporate Identification Number(CIN) is L23200MH1979PLC021359 and registration number is 021359. 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. 4192.06 Cr. and Equity Capital is Rs. 494.56 Cr. for the Year ended 31/12/2021.
    INDUSTRYADDRESSCONTACT
    LubricantsTechnopolis Knowledge Park, Mahakali Caves Road, Mumbai Maharashtra 400093investorrelations.india@castrol.com
    http://www.castrol.co.in
    Management
    NamePosition Held
    Mr. R GopalakrishnanChairman & Ind.Director
    Mr. Sandeep SangwanManaging Director
    Mr. Deepesh BaxiWholeTime Director & CFO
    Mr. Mayank PandeyWhole Time Director
    Mr. Saugata BasurayWhole Time Director
    Ms. Sangeeta TalwarIndependent Director
    Mr. Rakesh MakhijaIndependent Director
    Mr. Uday KhannaIndependent Director
    Mr. Sashi MukundanNominee Director
    Mr. Udayan SenNominee Director
    Ms. Nicola BuckNominee Director

    FAQ

    What is the latest intrinsic value of Castrol India Ltd?

    The latest intrinsic value of Castrol India Ltd as on 21 November 2024 is ₹195.77, which is 5.25% higher than the current market price of ₹186.00.

    What is the Market Cap of Castrol India Ltd?

    The Market Cap of Castrol India Ltd is 18,419 Cr..

    What is the current Stock Price of Castrol India Ltd as on 21 November 2024?

    The current stock price of Castrol India Ltd as on 21 November 2024 is ₹186.

    What is the High / Low of Castrol India Ltd stocks in FY 2024?

    In FY 2024, the High / Low of Castrol India Ltd stocks is 284/134.

    What is the Stock P/E of Castrol India Ltd?

    The Stock P/E of Castrol India Ltd is 20.5.

    What is the Book Value of Castrol India Ltd?

    The Book Value of Castrol India Ltd is 21.6.

    What is the Dividend Yield of Castrol India Ltd?

    The Dividend Yield of Castrol India Ltd is 4.03 %.

    What is the ROCE of Castrol India Ltd?

    The ROCE of Castrol India Ltd is 56.7 %.

    What is the ROE of Castrol India Ltd?

    The ROE of Castrol India Ltd is 42.5 %.

    What is the Face Value of Castrol India Ltd?

    The Face Value of Castrol India Ltd is 5.00.

    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 Castrol 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