Synopsis:
Arabian Petroleum Limited announced that it had received a receipt of a purchase order worth Rs 5.5 crore from MOIL Limited for the supply of Hydraulic Oil and Dual Purpose Oil to mines in Maharashtra and Madhya Pradesh.
The shares of this industrial & automotive lubricants producer are in focus after it secured a significant order from MOIL Ltd. In this article, we will dive more into the details.
With a market capitalization of Rs 83.9 crore, the shares of Arabian Petroleum Ltd are currently trading at Rs 77 per share, representing a decline of 33 percent from its 52-week high of Rs 115 per share. In the last one year, the stock has corrected by over 8 percent.
About the order
Arabian Petroleum Limited announced that it has secured a new purchase order valued at around Rs. 5.5 crore from MOIL Limited, which is a Government of India enterprise operating under the Ministry of Steel.
This order is for supplying Hydraulic Oil and Dual Purpose Oil to MOIL’s mines situated in the Bhandara district of Maharashtra and the Balaghat district of Madhya Pradesh.
This deal showcases the company’s ability to meet the essential lubrication needs of key sectors like mining and infrastructure. Industry experts are optimistic that such contracts could significantly boost Arabian Petroleum’s market presence and positively impact its revenue growth in the upcoming quarters.
Also read: Ashish Kacholia chemical stock jumps 3% after signing 15 year supply agreement with MNC
Financial Highlights
The company reported revenue of Rs 285 crore in FY25, a 9 percent increase from its FY24 revenue of Rs 262 crore. Regarding its profitability, it reported a 29 percent net profit growth to Rs 9 crore in FY25, compared to a net profit of Rs 7 crore in FY24.
The stock delivered an ROE and ROCE of 17.96 percent and 18.63 percent respectively, and is currently trading at a P/E of 8.67x as compared to its industry average of 18x.
Arabian Petroleum Limited (APL) is a public limited company that specializes in making lubricating oils and greases for both industrial and automotive markets. With a management team that has over 35 years of experience in the lubricants industry, APL has built a strong reputation. The company supplies products to several major multinational corporations and boasts a solid pan-India network of more than 300 dealers and distributors spread across 22 states.
They are backed by 10 depots located in cities like Ludhiana, Gurugram, Ghaziabad, Kolkata, Patna, Rajkot, Aurangabad, Indore, Nagpur, and Bhiwandi. Additionally, APL exports its products to over 25 countries and is recognized as a certified, preferred supplier for the Indian Navy, Army, and Air Force, as well as various other government and defense organizations.
Written by Satyajeet Mukherjee
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