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Company Analysis
Industrial Lubricants
🛢️Castrol India Ltd: Engaged in the manufacturing and marketing of automotive and industrial lubricants
🛢️This slow moving stock has started showing momentum recently📈
Detailed Company Analysis🧵👇
🛢️This slow moving stock has started showing momentum recently📈
Detailed Company Analysis🧵👇
✍️About the company:
🔹Co is principally engaged in the business of manufacturing & marketing of automotive and industrial lubricants and related services.
🔹It has strong hold in EV segment to with 2 out of 3 of the world's major car manufacturer uses castrol for EV Fluids.
🔹Co is principally engaged in the business of manufacturing & marketing of automotive and industrial lubricants and related services.
🔹It has strong hold in EV segment to with 2 out of 3 of the world's major car manufacturer uses castrol for EV Fluids.
🔹Company is owned by Castrol Ltd UK, a globally trusted multinational brand with products sold in over 160 countries.
🔹 It is a preferred lubricants partner for Volkswagen, Audi, BMW, Komatsu, and numerous other businesses.
🔹 It is a preferred lubricants partner for Volkswagen, Audi, BMW, Komatsu, and numerous other businesses.
✍️Market Share:
🔹Co holds a market share of 51%, with a 39% market share in the car segment, 28% in the motorcycle segment, and 20% in the commercial vehicle segment.
🔹Co holds a market share of 51%, with a 39% market share in the car segment, 28% in the motorcycle segment, and 20% in the commercial vehicle segment.
✍️Distribution Network:
🔹Co's distribution network includes 350+ distributors, 800+ sub-distributors serving approx. 1.5 lakh touchpoints, with 3P Greases, DEF, Filling, and 14 Depots & DC (Hub).
🔹Co's distribution network includes 350+ distributors, 800+ sub-distributors serving approx. 1.5 lakh touchpoints, with 3P Greases, DEF, Filling, and 14 Depots & DC (Hub).
✍️Product Portfolio:
Co produces and sells oil lubricants and fluids for various applications, including automotive, industrial, energy, marine, and IT cooling/data centers. It offers:
🔹Automotive lubricants
🔹Industrial lubricants
🔹Marine & energy lubricants
Co produces and sells oil lubricants and fluids for various applications, including automotive, industrial, energy, marine, and IT cooling/data centers. It offers:
🔹Automotive lubricants
🔹Industrial lubricants
🔹Marine & energy lubricants
✍️Manufacturing Capabilities:
🔹Co boasts 23 blending plants, 7 technology centers, and operates in the automotive, industrial, marine, and energy sectors.
🔹It has 3 strategically positioned plants: Silvassa (95 Mn ltrs), Patalganga (101 Mn ltrs) & Paharpur (62 Mn ltrs).
🔹Co boasts 23 blending plants, 7 technology centers, and operates in the automotive, industrial, marine, and energy sectors.
🔹It has 3 strategically positioned plants: Silvassa (95 Mn ltrs), Patalganga (101 Mn ltrs) & Paharpur (62 Mn ltrs).
✍️Revenue Bifurcation Q3 FY24:
🔹Industrial: 15%
🔹Personal mobility: 45%
🔹Commercial vehicle oil: 40%
🔹Industrial: 15%
🔹Personal mobility: 45%
🔹Commercial vehicle oil: 40%
✍️Key Metrics:
🔹M Cap: ₹19,624 Cr
🔹P/E: 22.7
🔹CMP: ₹198
🔹ROCE: 57.5%
🔹EVEBITDA: 14.4
🔹Debt to equity: 0.04
🔹3 Years Sales Growth: 19%
🔹M Cap: ₹19,624 Cr
🔹P/E: 22.7
🔹CMP: ₹198
🔹ROCE: 57.5%
🔹EVEBITDA: 14.4
🔹Debt to equity: 0.04
🔹3 Years Sales Growth: 19%
✍️Q3FY24 Financials Highlights:
🔹Revenue at ₹1,264 Cr⬆️6.84% QOQ &⬆️7.48% YOY.
🔹OPM stands at 26%, compared to 21% YoY.
🔹PAT at ₹242 Cr⬆️24.74% QOQ &⬆️25.38%YOY.
🔹TTM EPS at ₹8.74
🔹Revenue at ₹1,264 Cr⬆️6.84% QOQ &⬆️7.48% YOY.
🔹OPM stands at 26%, compared to 21% YoY.
🔹PAT at ₹242 Cr⬆️24.74% QOQ &⬆️25.38%YOY.
🔹TTM EPS at ₹8.74
✍️New Products:
🔹Co launched Castrol ON EV transmission fluids and other EV-specific fluids and conducted EV readiness training for mechanics.
🔹Co launched CRB ESSENTIAL (commercial vehicle engine oils) and MAGNATEC SUV 5W30 (premium SUV oil) in 1QFY24.
🔹Co launched Castrol ON EV transmission fluids and other EV-specific fluids and conducted EV readiness training for mechanics.
🔹Co launched CRB ESSENTIAL (commercial vehicle engine oils) and MAGNATEC SUV 5W30 (premium SUV oil) in 1QFY24.
✍️Key Highlights:
🔹Company's partnership with Jio-BP petrol pumps is progressing well, with lubricant supply to all outlets.
🔹Company is actively developing thermal solutions for EV batteries and supplying thermal fluids to EV OEMs.
🔹Company's partnership with Jio-BP petrol pumps is progressing well, with lubricant supply to all outlets.
🔹Company is actively developing thermal solutions for EV batteries and supplying thermal fluids to EV OEMs.
🔹Co achieved success in the two-wheeler industry, notably with the Castrol Power One program, uncovering top motorsports talent in India.
🔹Co expanded product availability to 32,000 rural outlets & reached consumers directly through e-commerce.
🔹Co expanded product availability to 32,000 rural outlets & reached consumers directly through e-commerce.
🔹Co has recently introduced AutoCare products that are making waves in the market and are available in 21,000 outlets.
🔹Co faced market share pressure in early 2023 due to 2022 price hikes but saw a positive trend in the second half.
🔹Co faced market share pressure in early 2023 due to 2022 price hikes but saw a positive trend in the second half.
🔹In November 2023, Co entered into an agreement with KFin Technologies Limited (new RTA) and Link Intime India Private Limited (former RTA).
🔹Collaboration between Castrol ON and Jaguar TCS Racing to take lessons from the racetrack and apply them to the road.
🔹Collaboration between Castrol ON and Jaguar TCS Racing to take lessons from the racetrack and apply them to the road.
✍️Industry Outlook:
🔹Global lubricants market to grow at 3.8% annually from 2024 to 2030 due to automotive demand.
🔹In India, the lubricants market is estimated to be 2.87 bn ltrs in 2024, and it is projected to increase to 3.15 bn ltrs by 2026.
🔹Global lubricants market to grow at 3.8% annually from 2024 to 2030 due to automotive demand.
🔹In India, the lubricants market is estimated to be 2.87 bn ltrs in 2024, and it is projected to increase to 3.15 bn ltrs by 2026.
✍️Future Outlook:
🔹Aims to maintain EBITDA margins between 23% to 26% while focusing on product innovation & expanding distribution.
🔹Co plans to invest in growth initiatives and anticipates a 50% rise in CAPEX for the upcoming year.
🔹Aims to maintain EBITDA margins between 23% to 26% while focusing on product innovation & expanding distribution.
🔹Co plans to invest in growth initiatives and anticipates a 50% rise in CAPEX for the upcoming year.
🔹Co anticipates growth in industrial lubrication driven by increased manufacturing activity in India.
🔹Co prioritizes expansion in aftercare, electric vehicles & industry partnerships.
🔹Co is committed to surpassing the typical 4-5% growth rate of the lubricants category.
🔹Co prioritizes expansion in aftercare, electric vehicles & industry partnerships.
🔹Co is committed to surpassing the typical 4-5% growth rate of the lubricants category.
✍️Shareholding Pattern:
🔹Promoters: 51.00%
🔹FIIs: 10.38%
🔹DIIs: 15.92%
🔹Retailers: 22.70%
🔹Promoters: 51.00%
🔹FIIs: 10.38%
🔹DIIs: 15.92%
🔹Retailers: 22.70%
⚡️Disclaimer: The above data should not be considered as a Buy or Sell recommendation. The analysis has been done for educational and learning purpose only.
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