Gulf Oil Lubricants India Ltd. share price target

Best-placed lubricant player:Gulf has progressed from a B2B player to a premium lubes company over past 7-8 years. Balanced approach to B2B and B2C segments has led to strong volume growth at firm margin.

Gulf oil reported 3.5% of volume growth in this quarter which was marginally below our estimated but still better than industry growth, further in Q4 FY16 there was impact of higher volume base on account of large institutional order if we exclude that base volume growth would have been 10%. The volume for entire year have been around 12.4% to 84200KL, this growth is around 3x of what lube industry has posted. The revenues have been higher than our estimates as the company has increased its prices by 2-3% which led to Net sales growing to Rs11,285.5mn from Rs10,113mn, realization's for the company improved on quarterly basis but remained flat on yearly basis to Rs134/ltr. Volume mix remained almost constant with DEO accounting 42%, MCO at 18-19%, PCMO 4-5%, 17-19% for other automotive (transmission oil) and 17-18% for industrial segments. Gulf further enhanced its foot print with 900 car stops, 6000 bike stops and overall distribution network remained around 55-56000. The personal...

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,...