Diversification to help achieve growth targets

Company
27 Feb 2024
5 Min read 
  • Castrol India is the 2nd largest manufacturer of automotive and industrial lubricants in India.
  •  The company has a strong distribution network of over 105,000 retail outlets.
  •  Castrol has taken various digital initiatives to improve connectivity and streamline processes.
  •  The company has revitalized its brand and is focusing on diversification to achieve growth targets.
  •  Castrol is expanding its presence in the auto care segment and partnering with Ki Mobility.
  •  The company is also addressing the threat of EVs by launching products and supplying EV fluids.
  •  Castrol's financials show steady growth in sales, EBITDA, and profitability.
  •  The stock is valued at 21.7x CY24E EPS and has a dividend yield of 3.8%.
  •  The company plans to focus on organic capex and may consider inorganic expansions in the future.
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