Castrol India Ltd. share price target

Market Leadership: Largest private lubricant player with 220 million liters installed capacity and 20% market share in the automotive segment. Multinational parentage with technology leadership: Backed by BP Plc, Castrol leverages global expertise, advanced formulations, and continuous innovation to sustain its market leadership. Well-entrenched distribution and marketing capabilities: 400+...

Castrol India's revenue and EBITDA exceeded our expectations. Castrol's sales increased by 7% YoY, led by 8% YoY volume growth on the back of strong volume growth in the industrials segment (+13% YoY) and rural geographies (+12% YoY). Personal Mobility and CVs reported high single digit volume growth. EBITDA increased by 8% YoY to Rs3.5bn, with EBITDA margin expanding by 28bps YoY to 23.4%, primarily due to lower A&P spends and price hikes. Management remain focused on expanding the distribution network and deepening penetration in the Industrials segment. Castrol has gained 40bps...

Castrol’s 4QCY24 EBITDA was a beat on our estimate, as the EBITDA margin came in at 27.8% (our est: 21.7%). The 4Q volumes were in line at 59m lit.

Castrol’s (CSTRL) revenue grew 9% YoY to INR13b in 3QCY24, driven by 8% YoY volume growth. EBITDA margin stood at 22.2%.

Castrol’s (CSTRL) revenue grew 2% YoY to INR13.3b in 1QCY24, driven by 5%
YoY growth in volumes; however, EBITDA margin declined to 22.2%, mainly
due to higher raw material cost and other expenses during the quarter.