This small-cap Lubricants Stock, engaged in manufacturing, marketing, and distributing automotive and industrial lubricants, greases, and specialty fluids across domestic and international markets, is in focus after Emkay Global Financial Services gave a target of Rs.1,800, which has an upside potential of up to 55.28 percent.
With a market capitalization of Rs. 5,751.86 crores, the share of Gulf Oil Lubricants India Limited has reached an intraday high of Rs. 1,174.85 per equity share, rising nearly 1.35 percent from its previous day’s close price of Rs. 1,159.20. Since then, the stock has retreated and is currently trading at Rs. 1,166.60 per equity share.
Emkay Global Financial Services, a prominent brokerage firm, has recommended a “Buy” call on Gulf Oil Lubricants India Limited with a target price of Rs. 1,800 per share, indicating an upside potential of 55.28 percent.
Emkay has given a positive view on Gulf Oil Lubricants India due to its strong growth outlook. Emkay has cited its attractive valuation at 11x CY24 EBIT, lower than peers like Castrol India (14x) and Veedol (14x).
The company benefits from a stable currency, declining base oil costs, and strong fundamentals. Emkay expects EBITDA margins to expand to 14–16 percent, up from the current guidance of 12–14 percent, supporting earnings growth and justifying the upward target valuation.
Gulf Oil Lubricants India Limited (GOLIL) was founded in 2008 and is a leading manufacturer and marketer of automotive and industrial lubricants in India. The company is part of the Hinduja Group and operates as a subsidiary of Gulf Oil International (Mauritius) Inc.
The company has a strong presence in India, with a vast B2C network of over 90,000 touchpoints, along with 1,500 Gulf rural stockists and 11,600 Gulf bike and car stops across 522 cities. The company also works with over 320 auto distributors and has 6,500 Nayara outlets, with the network growing at 10-15 percent yearly.
Additionally, its B2B network includes over 3,500 secondary customers, 70 industrial distributors, over 500 B2B direct customers, and over 880 IMF (Infrastructure, Mining, and Fleet) customers, showing its wide reach in both retail and industrial sectors.
The company also excels in battery sales and services, supporting its automotive focus. It has around 12,500 retail touchpoints and 220 distributors for battery sales. Gulf Oil Lubricants India Limited employs 13 dedicated service teams across India and operates 518 active Gulf Battery Service Points, ensuring reliable support for customers nationwide.
Coming into financial highlights, Gulf Oil Lubricants India Limited’s revenue has increased from Rs. 870 crore in Q4 FY24 to Rs. 953 crore in Q4 FY25, which has grown by 9.54 percent. The net profit has also grown by 6.90 percent, from Rs. 87 crore in Q4 FY24 to Rs. 93 crore in Q4 FY25.
Gulf Oil Lubricants India Limited’s revenue and net profit have grown at a CAGR of 18.32 percent and 19.16 percent, respectively, over the last three years.
In terms of return ratios, the company’s ROCE and ROE should be 27.6 percent and 25.9 percent, respectively. Gulf Oil Lubricants India Limited has an earnings per share (EPS) of Rs. 73, and its debt-to-equity ratio is 0.32x.
Written By – Nikhil Naik
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