Castrol India Ltd. share price target

CSTRL's 1QCY18 revenue grew 5% YoY (but declined 4% QoQ) to INR9.3b,ahead of our estimate of INR9.1b, led by (a) higher volumes at 51.5m liters(+3% YoY, -5% QoQ; our estimate was 51.2m liters), and (b) better realizations at INR180.4/liter (+2% YoY, +1% QoQ; our estimate was INR177/liter). It took price hikes to pass on the increase in raw material cost (up 3% QoQ). Reported EBITDA of INR2.7b (+4% YoY, -11% QoQ) was also above our estimate of INR2.6b, aided by lower than expected raw material cost of INR83.4/liter (+4% YoY, +2% QoQ; our estimate was INR83.6/liter). EBITDA margin was29.6% in 1QCY18 (29.8% in 1QCY17; 31.6% in 4QCY17).

Castrol India reported its Q1CY18 numbers, which were largely in line with our estimates on the profitability front mainly on account of strong EBITDA margins. The revenues increased 5.2% YoY to | 927.1 crore and came below our estimates of | 958 crore. The miss on the revenue front was mainly on account of lower than expected volumes of 51.5 million litres (our estimates: 52 million litres) and...

Castrol India Ltd (CIL) reported impressive Q4CY17 numbers with net revenue & PAT growth of 24% & 30% YoY respectively, above our estimates. Improvement in gross margins ( 126 bps) and EBITDA margins ( 424 bps) was encouraging. Overall growth was supported by strong volume offtake ( 15.7% YoY) and higher realisations during the quarter.

Castrol's Q4CY17 net sales/EBTIDA/net profit were higher than our estimates by 17.7%/32.8%/29.0%, respectively. Net sales grew 24.0% YoY Rs9.7 bn mainly on higher volumes (+15.7% YoY) while...

Castrol India reported its Q4CY17 numbers, which were above our estimates on all fronts mainly driven by higher volumes. The revenues increased 24% YoY to | 970.3 crore vs our estimates of | 855.9 crore. The volumes increased 15.7% YoY and came at 54.4 million litres above our estimates of 48.3 million litres (3.2% YoY). The net realisations per litre came above our estimates at | 178.4/litre (our estimates: | 176.5/litre). EBITDA per litre came in at | 56.4/litre...

CSTRL's 4QCY17 revenue grew 25% YoY (and 13% QoQ) to INR9.7b, ahead of our estimate of INR8.8b, led by (a) higher volumes at 54.4m liters (+16% YoY,+11% QoQ; our estimate was 50.3m liters), and (b) better realizations atINR178.4/liter (+8% YoY, +2% QoQ; our estimate was INR175.5/liter). For CY17,revenue grew 6.7% to INR35.8b, led by volumes of 205m liters (+2.6%) and realizations of INR175/liter (+4%). Reported EBITDA of INR3.1b (+42% YoY, +21% QoQ) was significantly above our estimate of INR2.4b, aided by lower than expected raw material cost ofINR80.7/liter (+4% YoY, +1% QoQ; our estimate was INR84.4/liter). EBITDA margin expanded to 31.6% in 4QCY17 (29.4% in 3QCY17; 27.8% in 4QCY16). For CY17, EBITDA was INR10.3b (+4%), with margin at 28.8% (v/s 29.6% in CY16).

ICICI Securities Ltd | Retail Equity Research Castrol India had made an announcement on bonus shares on November 14, 2017. The ratio was one bonus share for every one existing equity share i.e. 1:1. The stock has turned ex-bonus today while the record date for the same is December 23, 2017. Consequently, Castrol's share price, as per yesterday's closing price, has dropped to | 210/share from | 420/share. Hence, now our...

Castrol India Ltd. is one of the largest players in the Indian lubricant industry and is the market leader in manufacturing and marketing network of automotive, industrial and marine & energy lubricants in India. Company is a part of Castrol Limited UK (part of BP Group) with recognized leadership in lubricant industry for over 100 years in the country. The Company markets its automotive lubricants under two brands Castrol and BP. The company also offers a complete range of products for industrial applications and is market leader in corrosion preventives and metal cutting fluids segment. Castrol...

Castrol India Ltd's (CIL) Q3CY17 numbers were marginally ahead of our estimates with net revenue & PAT growth of 13.1% & 14.2% YoY respectively. Improvement in gross margins ( 133 bps) and EBITDA margins ( 149 bps) was encouraging. Healthy volume offtake, better realisations and stability in the base oil prices supported the overall growth.

Castrol's Q3CY17 net sales/EBTIDA/net profit were higher than our estimates by 3.8%/17.1%/22.6%, respectively. Net sales grew 13.1% YoY Rs8,614 mn primarily led by higher volumes (+7.1% YoY). Personal Mobility segment reported double digit volumes growth....