Gulf Oil Lubricants India Ltd. share price target

Gulf Oil Lubricants Q4 numbers were in line with our expectations. The core business continued to deliver 10% volume growth, driven by distribution expansion and OEM tie-ups. Rev growth was ~10.2% YoY at Rs 2.74bn, supported by vol growth rate of 3.5% (incl. inst order).

GOLIL delivered a strong volume growth of 10% for the quarter and we expect this trend to continue. Gross margin expansion on a sequential basis was as expected and we believe that gross margins should not expand from these levels for FY18. GOLIL is confident of delivering at least 2x 3x volume growth as compared to the industry. This growth would be driven by the new product launches, expansion of distribution channels and focus on gaining more OEM tie-ups. Improvement in the working capital cycle further improves the balance...

ICICI Securities Ltd | Retail Equity Research Gulf Oil Lubricants (GOL) reported its Q4FY17 numbers, which were in line with our estimates on the topline front. Revenues increased...

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...