Mutual Funds Commodities Research Tax Planning IPO Our Team Contact Us    
Google
Web www.equitybulls.com
Research

| More

Result Update: Castrol India Ltd - BUY - TP Rs.213 - Kotak

Posted On: 2018-05-08 08:22:20

Revenue growth was supported by volume growth across categories and price hikes undertaken to combat higher raw material cost. Adjusting for one-time volume growth in Q1CY17, the overall volume growth is ~5% yoy in Q1CY18.

Key Highlights

- Castrol's performance is in-line with our expectation. Despite the sharp rise in input costs, it has reported profitable volume growth in Q1CY18.

- Along with personal mobility segment and it has also started focusing on commercial segment (CRB brand commands strong consumer loyalty) by broadening its participation.

- New launches to boost volumes: Launched Castrol MAGNATEC engine oil with DUALOCK technology in the passenger car segment which provides 50% better engine protection in congested city driving conditions. In the commercial vehicle segment, Castrol CRB Turbomax with DuraShieldTM boosters was launched which delivers up to two times longer engine life.

- Despite a 7% yoy increase in raw material cost and 7% yoy increase in other expenses, CIL has reported a PAT growth of 2% yoy basis to Rs.1.82 bn (vs our expectation of Rs.1.86 bn) supported by both higher sales volume (2.6% yoy)/better realization (2.4% yoy), and higher other income. Overall revenue increased by 5% yoy to Rs. 9.3 bn driven by volume growth across categories. Operating margin declined marginally by 30 bps to 29.6% in Q1CY18.

Valuation & outlook

- We expect CIL to report an EPS of Rs.7.4 (earlier Rs.7.6) for CY2018 and an EPS of Rs.7.9 for CY2019. On the basis of our estimates, the stock at CMP is attractively valued at 14.3x EV/EBIDTA, 23.3x P/E and 15.1x P/BV on the basis of CY19E earnings. Based on our valuation multiples model, the target price of Castrol is Rs.213/share (earlier Rs.220) and we maintain BUY rating on the stock. We value the stock at 27x CY19E EPS. CIL is focusing on new customer acquisition, and distribution expansion to boost Castrol's volume growth. New product launches with also boost lubricant sales.

Shares of CASTROL INDIA LTD. was last trading in BSE at Rs.182 as compared to the previous close of Rs. 184.5. The total number of shares traded during the day was 172813 in over 2717 trades.

The stock hit an intraday high of Rs. 186.8 and intraday low of 180.9. The net turnover during the day was Rs. 31488021.


Source: Equity Bulls

Click here to send ur comments or to feedback@equitybulls.com


Disclaimer:The article above is a gist / extract of the original report prepared by the research firm / brokerage firm. This article is not to be considered as an offer to sell or a solicitation to buy any securities. This article is meant for general information only. www.equitybulls.com, its employees or owners or the research firms, its employees or owners won't be responsible for any liability that may arise from information, errors or omissions in these articles. www.equitybulls.com or its employees or owners / the research firms or its employees or clients or owners may from time to time hold positions in securities referred in this article. For detailed research reports, please contact the concerned research firm directly.





Other Headlines:

KILPEST India Ltd Q2 consolidated net profit higher at Rs. 1.53 crore

VIMTA Labs Ltd H1FY19 net profit surges to Rs. 13.42 crores

Result Update: Central Depository Services (India) Ltd - BUY - TP Rs.290 - Kotak

Result Update: Blue Star Ltd - BUY - TP Rs.655 - Kotak

Result Update: Bluedart Express Ltd - ACCUMULATE - TP Rs.2875 - Kotak

Result Update: Mahindra Holidays & Resorts Ltd - BUY - TP Rs.315 - Kotak

Result Update: GHCL - BUY - TP Rs.270 - Kotak

Result Update: NIIT Ltd - BUY - TP Rs.110 - Kotak

Result Update: Quess Corp Ltd - BUY - TP Rs.1072 - Kotak

Result Update: Praj Industries Ltd - REDUCE - TP Rs.108 - Kotak

Result Update: Supreme Industries Ltd - BUY - TP Rs.1205 - Kotak

Granules India Ltd Q2 consolidated PAT climbs to Rs. 60.26 crores

Result Update: Kansai Nerolac Paints Ltd - BUY - TP Rs.485 - Kotak

Result Update: Zensar Technologies Ltd - ACCUMULATE - TP Rs.257 - Kotak

Bajaj Auto Ltd - OPM below estimate; Retain Accumulate - Emkay

Result Update: Bodal Chemicals Ltd - ACCUMULATE - TP Rs.130 - Kotak

Result Update: Kajaria Ceramics Ltd - BUY - TP Rs.500 - Kotak

Result Update: Persistent Systems Ltd - BUY - TP Rs.870 - Kotak

Auto Industry Volume Update: September 2018 - Kotak

Sector Update - Natural Gas - Kotak

Company Visit Note: Jindal Stainless Ltd - NOT RATED - Kotak

Company Update: Bajaj Electricals Ltd - ACCUMULATE - TP Rs.545 - Kotak

Telecom: 2QFY19 preview - no respite - Kotak

Sector Update: Natural Gas - Kotak

Company Update: NBCC (India) Ltd - BUY - TP Rs.95 - Kotak

Sector Update: Paper Industry - Kotak

Management Meet Update: Maharashtra Seamless Ltd - BUY - TP Rs.805 - Kotak

Mid-Year FY19 Bank Outlook: Stress in Non-Corporate Segments - India Ratings and Research

View on proposed banks merger

Company Update: GHCL - BUY - TP Rs.330 - Kotak

Company Update: MIRC Electronics Ltd - BUY - TP Rs.32 - Kotak

Company Visit Note: Finolex Industries Ltd - ACCUMULATE - TP Rs.671 - Kotak

Company Update: NMDC Ltd - BUY - TP Rs.125 - Kotak

Company Update: Allcargo Logistics Ltd - BUY - TP Rs.145 - Kotak

Company Update: Hindustan Zinc Ltd - ACCUMULATE - TP Rs.300

Buyback Offer: Larsen & Toubro Ltd - BUY - Buyback Price Rs.1500

Result Update: Vascon Engineers Ltd - BUY - TP Rs.48 - Kotak

Result Update: Voltamp Ltd - BUY - TP Rs.1320 - Kotak

Result Update: Bodal Chemicals Ltd - REDUCE - TP Rs.130 - Kotak

Result Update: MIRC Electronics Ltd - ACCUMULATE - TP Rs.32 - Kotak

Result Update: Shankara Building Products Ltd - BUY - TP Rs.2017 - Kotak

Result Update: Dilip Buildcon Ltd - BUY - TP Rs.1276 - Kotak

Result Update: Zensar Technologies Ltd - ACCUMULATE - TP Rs.1373 - Kotak

Result Update: The India Cements Ltd - REDUCE - TP Rs.112 - Kotak

Result Update: Nagarjuna Construction Co Ltd - BUY - TP Rs.151 - Kotak

Result Update: Berger Paints Ltd - SELL - TP Rs.305 - Kotak

Result Update: Allcargo Logistics Ltd - BUY - TP Rs.145 - Kotak

Result Update: Aksharchem (India) Ltd - REDUCE - TP Rs.533 - Kotak

Result Update: AIA Engineering Ltd - SELL - TP Rs.1700 - Kotak

Result Update: Cummins India Ltd - BUY - TP Rs.785 - Kotak







Website Created & Maintained by : Chennai Scripts
West Mambalam, Chennai - 600 033,
Tamil Nadu, India

disclaimer copyright © 2005 - 2018