Gulf Oil Lubricants India - Q4 FY21 Result Update - YES Securities

(Rating: BUY, TP: Rs1,100 Upside: 57%)

- Revenue for the 4QFY21 stood 44% YoY & 7.4% QoQ higher at Rs 5.2bn. The strong growth in revenue was driven by a robust revival in sales volume, even as realization at Rs 148/liter, stood mostly flat QoQ and just 3% higher YoY

- Sales volume improved to 35mn liters (+40% YoY; +6% QoQ) in the 4QFY21, riding on strong sales momentum in 2HFY21.

- The Ebitda for the 4QFY21 stood 41% YoY higher at Rs 781mn, however QoQ lower by 6.3% on account of increase in raw material (Base Oil) cost

- We assume coverage for GOLI with a BUY rating at TP of Rs 1100/sh, implying a target P/E multiple of 20x FY23e, vs 12.6x, stock is currently trading at Rs. 699.

Shares of Gulf Oil Lubricants India Ltd was last trading in BSE at Rs.683 as compared to the previous close of Rs. 695.85. The total number of shares traded during the day was 4123 in over 874 trades.

The stock hit an intraday high of Rs. 704.95 and intraday low of 681.1. The net turnover during the day was Rs. 2848710.

Source : Equity Bulls

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