ECONOMY

Castrol India – Stronger Growth Through Retail Outlets Key To Outlook: ICICI Securities

BQ Blue’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BloombergQuint’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.

Castrol India Ltd. focusses on profitable growth in the low volume growth lube market.

This has meant higher Ebitda margin, return on equity and return on capital employed, but lower volume and profit growth than that of peers like Gulf Oil Lubricants India Ltd.

We estimate a strong 22% year-on-year rebound in volumes and 40% YoY in earnings per share on a low base in CY21E.

Since Q4 CY20, the company’s lubes are being marketed through the retail outlets of parent British Petroleum Plc and Reliance Industries Ltd.’s joint venture (Jio-BP).

This RO network is set to expand ~4 times to 5,500 over five years.

Click on the attachment to read the full report:

ICICI Securities Castrol India Initiating Coverage.pdf

DISCLAIMER

This report is authored by an external party. BloombergQuint does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of BloombergQuint.

Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

Most Related Links :
todaybiznews Governmental News Finance News

Source link

Back to top button