Gulf Oil Lubricants India Ltd. share price target

Gulf Oil was the first lubricant company in India to hike lubricant prices by 2-3% in Jan '17, thereby completely passing on higher raw material prices. Also, core volumes (ex-institutional order) grew robust 9% in Q3 (vs. industry growth of flat to negative) despite cash crunch in wake of demonet..

Gulf Oil Lubricants outperformed our estimates in 3QFY17 performance. Revenue growth was ~5% YoY at Rs 2.74bn. This was supported by healthy volume growth of ~3% in a demonetisation-hit quarter. Gross margins improved 120bps despite a surge in base oil prices (up 8-9% QoQ) as low margin institutional orders were nil.

ICICI Securities Ltd | Retail Equity Research Gulf Oil Lubricant has reported its Q3FY17 numbers, which were above our estimates. Revenues increased 5.1% YoY to | 273.6 crore,...

We recently met the management of Gulf Oil Lubricants. The company remains optimistic on growth outperformance driven by investment in brand, increasing distribution footprint, and new product launches. 1HFY17 comparable volumes grew by ~13%. Demonetisation has led to growth challenges for the lubricant industry. However, over the next 2 quarters growth should bounce back.

EBITDA increased 13.6% YoY at | 43.8 crore (our estimate: | 43.5 crore). EBITDA was at | 21.6 per litre in Q2FY17 against | 21 per litre in Q2FY16, in line with our estimate of | 21.7 per litre PAT during the quarter increased 27.7% YoY to | 30.2 crore and...

The results were above our estimates with a PAT beat of 14%. Revenues at INR283cr (est INR 239cr) increased 23% YoY driven by (i) a one off institutional order which contributed 8% of growth, (ii) core growth of 16%. B2C growth jumped to low double digits from 3% in 4QFY16. Gross margins expanded by 320bp YoY and 90bp QoQ on the back lower raw material costs. EBITDA Margin at 17.1% is up 210bp YoY & 50bp QoQ. EBITDA at INR 48.5cr grew by 41%...

ICICI Securities Ltd | Retail Equity Research Gulf Oil Lubricants reported 23.1% YoY increase in revenues to | 283.6 crore, above our estimate of | 244.3 crore due to higher volume growth of ~30% vs. estimate of 7.5%. Excluding an institutional order, volume growth was at 16% in Q1FY17 Subsequently, the EBITDA increased 40.5% YoY to | 48.5 crore (our estimate: | 36.9 crore). The EBITDA per litre was at | 22 per litre in Q1FY17 vs. | 20.3 per litre in Q1FY16 (our estimate: | 20.2 per litre)...

The results were broadly in line with ourestimates. Revenues at INR271cr increased 3% YoY mainly driven by volume growth of 10%. B2B volumes jumped 21%, aided by new tie-ups with OEMs. B2C growth was at a 3% vis-a-vis industry growth of 1%. Gross margins expanded by 600bp YoY and 90bp QoQ on the back lower raw material costs....

ICICI Securities Ltd | Retail Equity Research Gulf Oil Lubricants reported a 3.1% YoY increase in revenues to | 271.9 crore, above our estimate of | 264.6 crore on account of...