Castrol India Ltd: Fundamental Analysis, Share Price Insights & Intrinsic Value (2024)

Share Price and Basic Stock Data

Last Updated: December 24, 2024, 8:53 pm

Market Cap	19,624 Cr.
Current Price	198
High / Low	284/164
Stock P/E	21.9
Book Value	21.6
Dividend Yield	3.78 %
ROCE	56.7 %
ROE	42.5 %
Face Value	5.00
PEG Ratio	2.50

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

Stock P/E Current Price Intrinsic Value

View Share Price Target for Castrol India Ltd

Competitors of

Stock Name	Market Cap	Current Price	High / Low	Stock P/E	Book Value	Dividend Yield	ROCE	ROE	Face Value
Gandhar Oil Refinery (India) Ltd	2,115 Cr.	216	287/182	20.1	123	0.23 %	21.6 %	14.7 %	2.00
Continental Petroleums Ltd	62.7 Cr.	113	123/51.7	13.2	48.0	0.00 %	16.6 %	12.0 %	5.00
Tide Water Oil Co (I) Ltd	3,710 Cr.	2,130	2,800/1,031	24.9	475	2.44 %	23.7 %	18.0 %	2.00
Savita Oil Technologies Ltd	3,711 Cr.	537	655/340	21.2	235	0.76 %	18.7 %	12.4 %	2.00
Gulf Oil Lubricants India Ltd	5,957 Cr.	1,209	1,514/703	17.6	279	2.98 %	27.2 %	24.7 %	2.00
Industry Average	5,899.17 Cr	636.81		18.60	177.59	1.46%	25.21%	19.12%	3.29

All Competitor Stocks of

Quarterly Result

Month	Jun 2021	Sep 2021	Dec 2021	Mar 2022	Jun 2022	Sep 2022	Dec 2022	Mar 2023	Jun 2023	Sep 2023	Dec 2023	Mar 2024	Jun 2024
Sales	890	1,073	1,091	1,236	1,242	1,121	1,176	1,294	1,334	1,183	1,264	1,325	1,398
Expenses	692	811	825	918	956	864	925	1,003	1,024	914	935	1,032	1,075
Operating Profit	198	262	266	317	286	257	251	291	310	269	329	294	322
OPM %	22%	24%	24%	26%	23%	23%	21%	22%	23%	23%	26%	22%	23%
Other Income	13	8	12	15	14	19	20	22	19	20	22	24	20
Interest	1	1	1	1	0	1	2	2	1	2	2	2	3
Depreciation	20	20	21	20	20	21	21	23	22	23	25	24	26
Profit before tax	190	250	257	311	280	254	248	288	305	264	324	292	314
Tax %	26%	26%	27%	27%	26%	26%	22%	30%	26%	26%	25%	26%	26%
Net Profit	140	186	189	228	206	187	193	202	225	194	242	216	232
EPS in Rs	1.42	1.88	1.91	2.31	2.09	1.89	1.95	2.05	2.28	1.97	2.45	2.19	2.35

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

Quarterly Chart

Profit & Loss - Annual Report

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

Month	Dec 2012	Dec 2013	Dec 2014	Dec 2015	Dec 2016	Dec 2017	Dec 2018	Dec 2019	Dec 2020	Dec 2021	Dec 2022	Dec 2023	TTM
Sales	3,121	3,180	3,392	3,298	3,370	3,584	3,905	3,877	2,997	4,192	4,774	5,075	5,170
Expenses	2,496	2,492	2,675	2,397	2,369	2,551	2,834	2,723	2,183	3,125	3,663	3,877	3,956
Operating Profit	625	688	718	901	1,001	1,033	1,071	1,154	814	1,067	1,111	1,198	1,214
OPM %	20%	22%	21%	27%	30%	29%	27%	30%	27%	25%	23%	24%	23%
Other Income	70	106	47	90	86	84	84	64	62	47	67	83	87
Interest	2	2	2	1	1	1	1	1	4	2	4	8	9
Depreciation	27	30	36	39	45	46	56	70	87	83	81	92	98
Profit before tax	666	762	726	951	1,040	1,070	1,098	1,147	785	1,029	1,093	1,181	1,194
Tax %	33%	33%	35%	35%	36%	35%	36%	28%	26%	26%	25%	27%
Net Profit	447	509	475	615	670	692	708	827	583	758	815	864	885
EPS in Rs	4.52	5.14	4.80	6.22	6.78	6.99	7.16	8.36	5.89	7.66	8.24	8.74	8.96
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.

No data available for the compounded sales growth chart.

Balance Sheet

Last Updated: Unknown

Month	Dec 2012	Dec 2013	Dec 2014	Dec 2015	Dec 2016	Dec 2017	Dec 2018	Dec 2019	Dec 2020	Dec 2021	Dec 2022	Dec 2023	Jun 2024
Equity Capital	495	495	247	247	247	495	495	495	495	495	495	495	495
Reserves	155	257	250	328	734	526	671	872	920	1,151	1,391	1,627	1,639
Borrowings	0	0	0	0	0	0	0	0	0	7	50	77	73
Other Liabilities	830	864	995	1,086	907	957	941	862	979	1,052	1,133	1,221	1,271
Total Liabilities	1,480	1,615	1,492	1,662	1,888	1,977	2,107	2,229	2,394	2,704	3,069	3,420	3,478
Fixed Assets	126	143	172	149	147	139	186	200	209	201	261	259	302
CWIP	31	32	16	36	37	57	35	27	44	50	61	108	46
Investments	0	0	0	0	0	0	0	0	0	0	325	488	488
Other Assets	1,322	1,440	1,304	1,476	1,704	1,781	1,886	2,002	2,141	2,453	2,422	2,565	2,643
Total Assets	1,480	1,615	1,492	1,662	1,888	1,977	2,107	2,229	2,394	2,704	3,069	3,420	3,478

Reserves and Borrowings Chart

Cash Flow

Month	Dec 2012	Dec 2013	Dec 2014	Dec 2015	Dec 2016	Dec 2017	Dec 2018	Dec 2019	Dec 2020	Dec 2021	Dec 2022	Dec 2023
Cash from Operating Activity +	467	396	548	740	664	608	549	879	893	630	916	853
Cash from Investing Activity +	1	30	-14	2	-33	151	66	-448	-201	-83	62	-251
Cash from Financing Activity +	-433	-407	-697	-478	-568	-656	-567	-628	-564	-558	-608	-664
Net Cash Flow	35	20	-163	264	63	104	48	-196	128	-10	370	-61

Free Cash Flow

Month	Dec 2012	Dec 2013	Dec 2014	Dec 2015	Dec 2016	Dec 2017	Dec 2018	Dec 2019	Dec 2020	Dec 2021	Dec 2022	Dec 2023
Free Cash Flow	625.00	688.00	718.00	901.00	1.00	1.00	1.00	1.00	814.00	-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

Month	Dec 2012	Dec 2013	Dec 2014	Dec 2015	Dec 2016	Dec 2017	Dec 2018	Dec 2019	Dec 2020	Dec 2021	Dec 2022	Dec 2023
Debtor Days	25	27	29	26	28	29	37	45	22	27	27	30
Inventory Days	63	76	69	69	82	70	87	64	106	87	78	74
Days Payable	87	96	101	123	118	133	112	99	157	110	99	98
Cash Conversion Cycle	1	7	-3	-28	-9	-34	12	10	-30	4	6	6
Working Capital Days	-26	-17	-27	-48	-18	-16	5	5	-34	-7	-7	-5
ROCE %	107%	106%	117%	179%	133%	105%	101%	91%	57%	67%	61%	57%

Financial Efficiency Indicators Chart

Share Holding Pattern

Month	Sep 2021	Dec 2021	Mar 2022	Jun 2022	Sep 2022	Dec 2022	Mar 2023	Jun 2023	Sep 2023	Dec 2023	Mar 2024	Jun 2024
Promoters	51.00%	51.00%	51.00%	51.00%	51.00%	51.00%	51.00%	51.00%	51.00%	51.00%	51.00%	51.00%
FIIs	12.19%	12.15%	11.11%	10.65%	10.84%	11.39%	11.44%	11.41%	10.96%	10.38%	9.51%	9.98%
DIIs	16.47%	16.35%	15.99%	16.25%	16.11%	16.57%	16.56%	16.52%	16.51%	15.92%	16.37%	16.11%
Public	20.34%	20.50%	21.90%	22.10%	22.05%	21.04%	20.99%	21.07%	21.52%	22.70%	23.11%	22.90%
No. of Shareholders	2,55,179	2,60,427	2,96,543	3,05,265	2,98,420	2,80,484	2,85,745	2,89,776	3,01,596	3,39,597	3,77,234	3,98,584

Shareholding Pattern Chart

No. of Shareholders

Mutual Fund Holdings

Fund Name	No of Shares	AUM (%)	Amount Invested (Cr)	Previous Number of Shares	Previous Date	Percentage Change
Tata Ethical Fund - Regular Plan	1,026,343	0.87	26.9	1,026,343	2024-12-23	0%
ICICI Prudential MidCap Fund	1,000,000	0.39	26.21	1,026,343	2024-12-23	-2.57%
Tata Young Citizens Fund (After 7 Years) - Regular Plan	200,000	1.37	5.24	1,026,343	2024-12-23	-80.51%
Navi Nifty India Manufacturing Index Fund	6,286	0.34	0.16	1,026,343	2024-12-23	-99.39%

ROCE Trend

EPS Trend

Key Financial Ratios

Month	Dec 23	Dec 22	Dec 21	Dec 20	Dec 19
FaceValue	5.00	5.00	5.00	5.00	5.00
Basic EPS (Rs.)	8.74	8.24	7.66	5.89	8.36
Diluted EPS (Rs.)	8.74	8.24	7.66	5.89	8.36
Cash EPS (Rs.)	9.67	9.06	8.50	6.77	9.07
Book Value[Excl.RevalReserv]/Share (Rs.)	21.45	19.07	16.64	14.30	13.82
Book Value[Incl.RevalReserv]/Share (Rs.)	21.45	19.07	16.64	14.30	13.82
Dividend / Share (Rs.)	7.50	6.50	5.50	5.50	5.50
Revenue From Operations / Share (Rs.)	51.30	48.27	42.38	30.30	39.19
PBDIT / Share (Rs.)	12.95	11.91	11.27	8.86	12.31
PBIT / Share (Rs.)	12.02	11.09	10.43	7.98	11.61
PBT / Share (Rs.)	11.94	11.05	10.41	7.94	11.60
Net Profit / Share (Rs.)	8.74	8.24	7.66	5.89	8.36
PBDIT Margin (%)	25.24	24.67	26.58	29.23	31.41
PBIT Margin (%)	23.42	22.97	24.61	26.34	29.61
PBT Margin (%)	23.27	22.88	24.55	26.20	29.58
Net Profit Margin (%)	17.02	17.07	18.08	19.45	21.34
Return on Networth / Equity (%)	40.72	43.22	46.07	41.21	60.52
Return on Capital Employeed (%)	53.91	56.24	61.78	54.56	82.69
Return On Assets (%)	25.26	26.56	28.03	24.35	37.12
Asset Turnover Ratio (%)	1.56	1.65	1.64	1.30	1.79
Current Ratio (X)	1.91	2.00	2.17	2.05	2.18
Quick Ratio (X)	1.47	1.52	1.69	1.67	1.82
Inventory Turnover Ratio (X)	4.51	4.44	4.38	3.50	3.91
Dividend Payout Ratio (NP) (%)	74.40	72.80	71.76	93.32	65.75
Dividend Payout Ratio (CP) (%)	67.21	66.19	64.70	81.24	60.64
Earning Retention Ratio (%)	25.60	27.20	28.24	6.68	34.25
Cash Earning Retention Ratio (%)	32.79	33.81	35.30	18.76	39.36
Interest Coverage Ratio (X)	170.13	293.80	462.40	210.61	1023.39
Interest Coverage Ratio (Post Tax) (X)	115.76	204.28	315.56	141.13	696.27
Enterprise Value (Cr.)	16584.59	10963.30	10851.13	10911.77	11848.27
EV / Net Operating Revenue (X)	3.27	2.30	2.59	3.64	3.06
EV / EBITDA (X)	12.95	9.31	9.74	12.45	9.73
MarketCap / Net Operating Revenue (X)	3.50	2.55	2.90	4.07	3.30
Retention Ratios (%)	25.59	27.19	28.23	6.67	34.24
Price / BV (X)	8.38	6.46	7.38	8.62	9.36
Price / Net Operating Revenue (X)	3.50	2.55	2.90	4.07	3.30
EarningsYield	0.04	0.06	0.06	0.04	0.06

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value of Castrol India Ltd as of December 26, 2024 is: 208.64

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 December 26, 2024, Castrol India Ltd is Undervalued by 5.37% compared to the current share price 198.00

Intrinsic Value of Castrol India Ltd as of December 26, 2024 is: 226.90

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 December 26, 2024, Castrol India Ltd is Undervalued by 14.60% compared to the current share price 198.00

Last 5 Year EPS CAGR: 8.75%

*Investments are subject to market risks

Strength and Weakness

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

Strength

Weakness

The stock has a high average ROCE of 98.42%, which is a positive sign.
The stock has a low average Working Capital Days of -16.25, which is a positive sign.
The stock has a low average Cash Conversion Cycle of -4.83, which is a positive sign.
The company has higher reserves (809.31 cr) compared to borrowings (15.92 cr), indicating strong financial stability.
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: 25.21%)
  - 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: 19.12%)
  - 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: 21.9 (Industry average Stock P/E: 18.6)
  - 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.

INDUSTRY	ADDRESS	CONTACT
Lubricants	Technopolis Knowledge Park, Mahakali Caves Road, Mumbai Maharashtra 400093	investorrelations.india@castrol.com http://www.castrol.co.in

Management
Name	Position Held
Mr. R Gopalakrishnan	Chairman & Ind.Director
Mr. Sandeep Sangwan	Managing Director
Mr. Deepesh Baxi	WholeTime Director & CFO
Mr. Mayank Pandey	Whole Time Director
Mr. Saugata Basuray	Whole Time Director
Ms. Sangeeta Talwar	Independent Director
Mr. Rakesh Makhija	Independent Director
Mr. Uday Khanna	Independent Director
Mr. Sashi Mukundan	Nominee Director
Mr. Udayan Sen	Nominee Director
Ms. Nicola Buck	Nominee Director

FAQ

What is the latest intrinsic value of Castrol India Ltd?

The latest intrinsic value of Castrol India Ltd as on 26 December 2024 is ₹208.64, which is 5.37% higher than the current market price of ₹198.00. The stock has a market capitalization of 19,624 Cr. and recorded a high/low of 284/164 during the current fiscal year 2024-2025. As of Jun 2024, the company has reserves of ₹1,639 Cr and total liabilities of ₹3,478 Cr.

What is the Market Cap of Castrol India Ltd?

The Market Cap of Castrol India Ltd is 19,624 Cr..

What is the current Stock Price of Castrol India Ltd as on 26 December 2024?

The current stock price of Castrol India Ltd as on 26 December 2024 is 198.

What is the High / Low of Castrol India Ltd stocks in FY 2024-2025?

In FY 2024-2025, the High / Low of Castrol India Ltd stocks is 284/164.

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

The Stock P/E of Castrol India Ltd is 21.9.

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 3.78 %.

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.