Buy Or Sell Opportunity • Jul 16
Now 20% overvalued after recent price rise Over the last 90 days, the stock has risen 1.3% to ₹185. The fair value is estimated to be ₹154, however this is not to be taken as a sell recommendation but rather should be used as a guide only. Revenue has grown by 6.2% over the last 3 years. Earnings per share has grown by 6.9%. Revenue is forecast to grow by 8.3% in a year. Earnings are forecast to grow by 5.3% in the next year. Reported Earnings • Apr 30
First quarter 2026 earnings released: EPS: ₹2.45 (vs ₹2.36 in 1Q 2025) First quarter 2026 results: EPS: ₹2.45 (up from ₹2.36 in 1Q 2025). Revenue: ₹15.7b (up 10% from 1Q 2025). Net income: ₹2.42b (up 3.7% from 1Q 2025). Profit margin: 15% (down from 16% in 1Q 2025). The decrease in margin was driven by higher expenses. Revenue is forecast to grow 7.0% p.a. on average during the next 3 years, compared to a 13% growth forecast for the Chemicals industry in India. Over the last 3 years on average, earnings per share has increased by 7% per year but the company’s share price has increased by 16% per year, which means it is tracking significantly ahead of earnings growth. Announcement • Mar 30
Castrol India Limited Declares Final Dividend for the Financial Year Ended December 31, 2025 Castrol India Limited declared final dividend for the financial year ended December 31, 2025. For the period, the company reported dividend of INR 5.25 per equity share. Upcoming Dividend • Mar 16
Upcoming dividend of ₹5.25 per share Eligible shareholders must have bought the stock before 23 March 2026. Payment date: 27 April 2026. Payout ratio and cash payout ratio are on the higher end at 91% and 87% respectively. Trailing yield: 4.7%. Within top quartile of Indian dividend payers (1.6%). Higher than average of industry peers (0.9%). Declared Dividend • Feb 05
Final dividend of ₹5.25 announced Shareholders will receive a dividend of ₹5.25. Ex-date: 23rd March 2026 Payment date: 27th April 2026 Dividend yield will be 4.7%, which is higher than the industry average of 0.8%. Sustainability & Growth Dividend is covered by both earnings (86% earnings payout ratio) and cash flows (85% cash payout ratio). The dividend has increased by an average of 7.8% per year over the past 10 years and has been stable with no material reductions to payments, indicating a long track record of dividend growth and stability. EPS is expected to grow by 24% over the next 3 years, which should provide support to the dividend and adequate earnings cover. Reported Earnings • Feb 04
Full year 2025 earnings released: EPS: ₹9.60 (vs ₹9.37 in FY 2024) Full year 2025 results: EPS: ₹9.60 (up from ₹9.37 in FY 2024). Revenue: ₹57.9b (up 7.9% from FY 2024). Net income: ₹9.50b (up 2.4% from FY 2024). Profit margin: 16% (in line with FY 2024). Revenue is forecast to grow 5.0% p.a. on average during the next 2 years, compared to a 13% growth forecast for the Chemicals industry in India. Over the last 3 years on average, earnings per share has increased by 7% per year but the company’s share price has increased by 16% per year, which means it is tracking significantly ahead of earnings growth. Announcement • Jan 09
Castrol India Limited Appoints V Kaushik Vedula as New Vice President and Head of Marketing, Effective February 2, 2026 Castrol India Limited has named V Kaushik Vedula as its new vice president and head of Marketing, effective February 2, 2026. In his most recent role, Vedula served as vice president of Marketing at Emami Limited, where he oversaw brand and business strategy across multiple categories. Prior to that, he was vice president at Quess Corp, where he built and scaled a digital product business and led growth initiatives. Vedula has more than two decades of experience across consumer goods, fast-moving consumer durables, and digital businesses. He started his career in 2004 and has served in marketing, new business development, and profit-and-loss responsibilities in large organizations and entrepreneurial settings. He has worked with Procter & Gamble, Nokia, and Philips in roles including brand management, consumer marketing, category development, and multi-channel sales management. Announcement • Jan 07
Castrol India Limited to Report Fiscal Year 2025 Results on Feb 03, 2026 Castrol India Limited announced that they will report fiscal year 2025 results on Feb 03, 2026 Announcement • Nov 16
Castrol India Names Mayank Pandey as Vice-President & Head - B2C Sales, Effective January 1, 2026 Castrol India has announced the appointment of Mayank Pandey as Vice-President & Head - B2C Sales, a Senior Management Personnel (SMP) position, effective January 1, 2026, following a board resolution passed on November 14, 2025. Pandey brings over 25 years of experience across the oil & gas, lubricants, consulting, paints, and engineering sectors. Having joined bp/Castrol in 2007, he has held several senior leadership roles over 18 years, steering business teams and transformation programs across India, China, Japan, Korea and Europe. He currently serves as Vice-President at bp's Customers & Products (C&P) Business & Technology Centre. Prior to this, he was Whole-Time Director and Vice-President & Head - Supply Chain at Castrol India Limited from August 2021 to July 2024. Reported Earnings • Nov 05
Third quarter 2025 earnings released: EPS: ₹2.30 (vs ₹2.10 in 3Q 2024) Third quarter 2025 results: EPS: ₹2.30 (up from ₹2.10 in 3Q 2024). Revenue: ₹13.8b (up 6.7% from 3Q 2024). Net income: ₹2.28b (up 9.8% from 3Q 2024). Profit margin: 17% (in line with 3Q 2024). Revenue is forecast to grow 6.9% p.a. on average during the next 3 years, compared to a 13% growth forecast for the Chemicals industry in India. Over the last 3 years on average, earnings per share has increased by 7% per year but the company’s share price has increased by 16% per year, which means it is tracking significantly ahead of earnings growth. Announcement • Oct 07
Castrol India Limited to Report Q3, 2025 Results on Nov 04, 2025 Castrol India Limited announced that they will report Q3, 2025 results on Nov 04, 2025 Announcement • Sep 22
Castrol India Limited Launches Helmet Cleaner, Expands Auto Care Portfolio Castrol India has announced the launch of the Castrol All-in-One Helmet Cleaner, marking an expansion of its Auto Care business. The product is designed for Indian two-wheeler riders, for whom helmet hygiene is often overlooked. Faced with hot and dusty conditions, most riders use water and household detergents-a solution which is often inconvenient and less effective for cleaning helmets. Castrol's All-in-One Helmet cleaner offers a simple, easy-to-use solution-a foam spray that cleans both the inside and outside of helmets, provides 99.99% antibacterial action through silver ION technology, and is dermatologically tested to be safe for skin and hair. The product is now available pan-India across Castrol's retail and workshop outlets, as well as on Amazon. It is being supported with in-store activations and digital outreach. The launch builds on Castrol's existing Auto Care portfolio, which includes products such as Castrol Chain Cleaner, Castrol Chain Lube, Castrol 3-in-1 Shiner, and several other products, all aimed at meeting the everyday needs of riders. Reported Earnings • Aug 06
Second quarter 2025 earnings released: EPS: ₹2.47 (vs ₹2.35 in 2Q 2024) Second quarter 2025 results: EPS: ₹2.47 (up from ₹2.35 in 2Q 2024). Revenue: ₹15.1b (up 7.8% from 2Q 2024). Net income: ₹2.44b (up 5.1% from 2Q 2024). Profit margin: 16% (in line with 2Q 2024). Revenue is forecast to grow 7.0% p.a. on average during the next 3 years, compared to a 13% growth forecast for the Chemicals industry in India. Over the last 3 years on average, earnings per share has increased by 6% per year but the company’s share price has increased by 23% per year, which means it is tracking significantly ahead of earnings growth. Announcement • Jul 07
Castrol India Limited to Report Q2, 2025 Results on Aug 05, 2025 Castrol India Limited announced that they will report Q2, 2025 results on Aug 05, 2025 Reported Earnings • Apr 29
First quarter 2025 earnings released: EPS: ₹2.36 (vs ₹2.19 in 1Q 2024) First quarter 2025 results: EPS: ₹2.36 (up from ₹2.19 in 1Q 2024). Revenue: ₹14.5b (up 9.7% from 1Q 2024). Net income: ₹2.33b (up 8.0% from 1Q 2024). Profit margin: 16% (in line with 1Q 2024). Revenue is forecast to grow 5.6% p.a. on average during the next 2 years, compared to a 12% growth forecast for the Chemicals industry in India. Over the last 3 years on average, earnings per share has increased by 7% per year but the company’s share price has increased by 23% per year, which means it is tracking significantly ahead of earnings growth. Announcement • Apr 03
Castrol India Limited to Report Q1, 2025 Results on Apr 28, 2025 Castrol India Limited announced that they will report Q1, 2025 results on Apr 28, 2025 Upcoming Dividend • Mar 11
Upcoming dividend of ₹9.50 per share Eligible shareholders must have bought the stock before 18 March 2025. Payment date: 23 April 2025. Payout ratio and cash payout ratio are on the higher end at 91% and 88% respectively. Trailing yield: 3.5%. Within top quartile of Indian dividend payers (1.4%). Higher than average of industry peers (0.8%). Valuation Update With 7 Day Price Move • Feb 10
Investor sentiment improves as stock rises 19% After last week's 19% share price gain to ₹210, the stock trades at a forward P/E ratio of 21x. Average forward P/E is 26x in the Chemicals industry in India. Total returns to shareholders of 106% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at ₹145 per share. Declared Dividend • Feb 05
Final dividend increased to ₹9.50 Dividend of ₹9.50 is 111% higher than last year. Ex-date: 18th March 2025 Payment date: 23rd April 2025 Dividend yield will be 6.7%, which is higher than the industry average of 0.8%. Sustainability & Growth Dividend is not adequately covered by earnings (91% earnings payout ratio). However, it is covered by cash flows (88% cash payout ratio). The dividend has increased by an average of 9.3% per year over the past 10 years and has been stable with no material reductions to payments, indicating a long track record of dividend growth and stability. Earnings per share is expected to grow by 26% over the next 3 years, which should maintain adequate earnings cover for the dividend. Buy Or Sell Opportunity • Feb 04
Now 23% overvalued Over the last 90 days, the stock has fallen 14% to ₹188. The fair value is estimated to be ₹152, however this is not to be taken as a sell recommendation but rather should be used as a guide only. Revenue has grown by 7.2% over the last 3 years. Earnings per share has grown by 6.4%. Revenue is forecast to grow by 12% in 2 years. Earnings are forecast to grow by 22% in the next 2 years. Announcement • Jan 06
Castrol India Limited to Report Q4, 2024 Results on Feb 03, 2025 Castrol India Limited announced that they will report Q4, 2024 results on Feb 03, 2025 Buy Or Sell Opportunity • Nov 22
Now 27% overvalued Over the last 90 days, the stock has fallen 25% to ₹199. The fair value is estimated to be ₹157, however this is not to be taken as a sell recommendation but rather should be used as a guide only. Revenue has grown by 8.1% over the last 3 years. Earnings per share has grown by 5.9%. Revenue is forecast to grow by 13% in 2 years. Earnings are forecast to grow by 20% in the next 2 years. Reported Earnings • Oct 25
Third quarter 2024 earnings released: EPS: ₹2.10 (vs ₹1.97 in 3Q 2023) Third quarter 2024 results: EPS: ₹2.10 (up from ₹1.97 in 3Q 2023). Revenue: ₹13.1b (up 11% from 3Q 2023). Net income: ₹2.07b (up 6.7% from 3Q 2023). Profit margin: 16% (in line with 3Q 2023). Revenue is forecast to grow 6.2% p.a. on average during the next 3 years, compared to a 13% growth forecast for the Chemicals industry in India. Over the last 3 years on average, earnings per share has increased by 6% per year but the company’s share price has increased by 14% per year, which means it is tracking significantly ahead of earnings growth. Announcement • Oct 15
Castrol India Limited Announces Executive Appointments Castrol India Limited announced the appointment of Ms. Satyavati Berera (DIN: 05002709) as an Independent Director of the Company for a term of five consecutive years from 1 October 2024 to 30 September 2029 and appointment of Mr. Kartikeya Dube (DIN: 00929373) as Non-Executive Nominee Director of the Company and appointment of Mr. Kedar Lele (DIN: 06969319) as a Director of the Company. Announcement • Oct 01
Castrol India Limited to Report Q3, 2024 Results on Oct 24, 2024 Castrol India Limited announced that they will report Q3, 2024 results on Oct 24, 2024 Announcement • Sep 11
Castrol India Limited Expands Auto Care Product Range with New Additions Castrol India Limited has expanded its Auto Care product range with the introduction of two new additions, the Castrol Microfibre Cloth and the Castrol Shiner Sponge. These additions complement the existing range of Castrol Chain Cleaner, Castrol Chain Lube, Castrol 3-in-1 Shiner, Castrol 1-Step Polishing Compound and Castrol Anti- Rust Lubricant Spray. Designed to provide exceptional cleaning and polishing results for both interior and exterior surfaces of vehicles, the Castrol MicrofIBre Cloth and the Castroll Shiner Sponge offer comprehensive solution for vehicle maintenance. The Castrol MicrofibreCloth is a valuable addition to the vehicle maintenance category. Its advanced microfibre technology and durable construction effectively capture dirt, dust, and liquids without leaving behind residue or lint. The cloth's superior water absorption and retention capabilities minimise the need for frequent changes, while its quick-drying properties help prevent bacterial growth and odors. Versatile and easy to use, the Castrol Microf Fibre Cloth can also be employed for household cleaning tasks, such as cleaning glass windows, microwave ovens, and refrigerators. The Castrol Shiner Sponge is an innovative product that effortlessly enhances surface gloss and color with just one swipe. Infused with a powerful shiner, this sponge quickly restores the shine to paint, plastic, and rubber surfaces. Its user-friendly application and refreshing lemon fragrance make vehicle cleaning a pleasant experience. Price Target Changed • Aug 02
Price target increased by 11% to ₹244 Up from ₹219, the current price target is an average from 5 analysts. New target price is 6.3% below last closing price of ₹260. Stock is up 71% over the past year. The company is forecast to post earnings per share of ₹9.50 for next year compared to ₹8.74 last year. Reported Earnings • Jul 31
Second quarter 2024 earnings released: EPS: ₹2.35 (vs ₹2.28 in 2Q 2023) Second quarter 2024 results: EPS: ₹2.35 (up from ₹2.28 in 2Q 2023). Revenue: ₹14.2b (up 6.3% from 2Q 2023). Net income: ₹2.32b (up 3.1% from 2Q 2023). Profit margin: 16% (in line with 2Q 2023). Revenue is forecast to grow 6.2% p.a. on average during the next 3 years, compared to a 11% growth forecast for the Chemicals industry in India. Over the last 3 years on average, earnings per share has increased by 5% per year but the company’s share price has increased by 23% per year, which means it is tracking significantly ahead of earnings growth. Announcement • Jul 16
Castrol India Limited Announces Relinquish of Mayank Pandey as Whole-Time Director, Effective from July 30, 2024 Castrol India Limited announced that Mr. Mayank Pandey, will relinquish his office as Whole-time Director of the Company, with effect from close of business hours on 30 July 2024 to pursue another role within bp. Consequently, he will cease to be the Director of the Company from such date. Mr. Mayank Pandey was appointed as the Whole-time Director of the Company effective 9 August 2021, and his term of appointment was due to expire on 8 August 2026. Announcement • Jul 04
Castrol India Limited to Report Q2, 2024 Results on Jul 30, 2024 Castrol India Limited announced that they will report Q2, 2024 results on Jul 30, 2024 Valuation Update With 7 Day Price Move • Jul 04
Investor sentiment improves as stock rises 18% After last week's 18% share price gain to ₹243, the stock trades at a forward P/E ratio of 25x. Average forward P/E is 31x in the Chemicals industry in India. Total returns to shareholders of 92% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at ₹126 per share. Announcement • Jun 13
Castrol India Limited Announces Relinquishment of Sandeep Sangwan as Managing Director, Effective from 31 October 2024 Castrol India Limited announced that the Board of Directors at its meeting held on 11 June 2024, approved changes to the Company: Mr. Sandeep Sangwan will relinquish his office as Managing Director of the Company with effect from close of business hours on 31 October 2024 to pursue another role within bp. He was appointed as the Managing Director of the Company effective 1 January 2020, and his term of appointment was due to expire on 31 December 2024. Reason for change Relinquishment of office of Managing Director by Mr. Sandeep Sangwan effective close of business hours on 31 October 2024 to pursue another role within bp. Reported Earnings • May 01
First quarter 2024 earnings released: EPS: ₹2.19 (vs ₹2.05 in 1Q 2023) First quarter 2024 results: EPS: ₹2.19 (up from ₹2.05 in 1Q 2023). Revenue: ₹13.5b (up 4.3% from 1Q 2023). Net income: ₹2.16b (up 6.8% from 1Q 2023). Profit margin: 16% (in line with 1Q 2023). Revenue is forecast to grow 5.5% p.a. on average during the next 3 years, compared to a 12% growth forecast for the Chemicals industry in India. Over the last 3 years on average, earnings per share has increased by 6% per year but the company’s share price has increased by 19% per year, which means it is tracking significantly ahead of earnings growth. Announcement • Apr 02
Castrol India Limited to Report Q1, 2024 Results on Apr 30, 2024 Castrol India Limited announced that they will report Q1, 2024 results on Apr 30, 2024 Upcoming Dividend • Mar 14
Upcoming dividend of ₹4.50 per share Eligible shareholders must have bought the stock before 21 March 2024. Payment date: 26 April 2024. Payout ratio and cash payout ratio are on the higher end at 86% and 85% respectively. Trailing yield: 3.8%. Within top quartile of Indian dividend payers (1.3%). Higher than average of industry peers (0.9%). Reported Earnings • Mar 01
Full year 2023 earnings released: EPS: ₹8.74 (vs ₹8.24 in FY 2022) Full year 2023 results: EPS: ₹8.74 (up from ₹8.24 in FY 2022). Revenue: ₹51.6b (up 8.0% from FY 2022). Net income: ₹8.64b (up 6.0% from FY 2022). Profit margin: 17% (in line with FY 2022). Revenue is forecast to grow 4.4% p.a. on average during the next 3 years, compared to a 12% growth forecast for the Chemicals industry in India. Over the last 3 years on average, earnings per share has increased by 8% per year but the company’s share price has increased by 16% per year, which means it is tracking significantly ahead of earnings growth. New Risk • Feb 05
New major risk - Revenue and earnings growth Earnings are forecast to decline by an average of 4.7% per year for the foreseeable future. This is considered a major risk. Ultimately, shareholders want to see a good return on their investment and that generally comes from sharing in the company's profits. If profits are expected to decline, then in most cases the share price will decline over time as well. In addition, if the company pays dividends it will also likely need to reduce or cut them, striking a dual blow to total shareholder returns. Currently, the following risks have been identified for the company: Major Risk Earnings are forecast to decline by an average of 4.7% per year for the foreseeable future. Minor Risk Dividend is not well covered by cash flows (122% cash payout ratio). Announcement • Feb 02
Castrol India Limited, Annual General Meeting, Mar 28, 2024 Castrol India Limited, Annual General Meeting, Mar 28, 2024. Announcement • Feb 01
Castrol India Limited Proposes Final Dividend for the Financial Year Ended 31 December 2023, Payable on or Before 26 April 2024 Castrol India Limited at its Board of Directors held on 1 February 2024 recommended final dividend of INR 4.50/- per equity share of the face value of INR 5/- each for the financial year ended 31 December 2023 subject to approval by the Shareholders at the 46th Annual General Meeting. The company fixed Thursday, 21 March 2024 as the record date for determining entitlement of members to final dividend for the financial year ended 31 December 2023. The dividend, if approved by the Shareholders will be paid on or before 26 April 2024. Price Target Changed • Jan 10
Price target increased by 7.7% to ₹167 Up from ₹155, the current price target is an average from 5 analysts. New target price is 7.2% below last closing price of ₹180. Stock is up 44% over the past year. The company is forecast to post earnings per share of ₹8.48 for next year compared to ₹8.24 last year. Announcement • Jan 05
Castrol India Limited to Report Q4, 2023 Results on Feb 01, 2024 Castrol India Limited announced that they will report Q4, 2023 results on Feb 01, 2024 Valuation Update With 7 Day Price Move • Dec 26
Investor sentiment improves as stock rises 20% After last week's 20% share price gain to ₹183, the stock trades at a forward P/E ratio of 20x. Average forward P/E is 29x in the Chemicals industry in India. Total returns to shareholders of 73% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at ₹112 per share. Announcement • Nov 30
Castrol India Limited Appoints Mr. Anoop Jindal as Head - Customer Excellence & Operations, with Effect from 1 January 2024 Castrol India Limited has appointed Mr. Anoop Jindal as Vice-President & Head - Customer Excellence & Operations, with effect from 1 January 2024. A brief profile of Mr. Anoop Jindal is enclosed. Mr. Anoop Jindal has a proven track record of driving revenue growth across diverse industries, including Industrial products and lubricants. He joined Castrol India Limited ("Castrol") in 2005 as a Key Accounts Manager and then gained extensive experience across functions in managing OEMs, Strategic accounts, Sales Excellence & RTM and Customer operations. In these diverse roles, he led multiple new initiatives on new customer acquisitions, value delivery, superior customer experience, compliance, simplification and standardization for long term profitable business growth. He played a pivotal role in driving digital agenda for influencer advocacy and loyalty programs as well as connecting customers digitally to gain competitive edge for sustainable business growth. Since 2021, Mr. Anoop Jindal has been leading the B2B (FWS & Heavy Duty) sales team in delivering top-line and bottom-line objectives through new acquisitions and distribution expansion across B2B business segments of Franchise Workshops, Building & Construction, Mining and Fleets. He has been instrumental in driving continuous B2B business growth by developing a highly motivated sales team focused on new account acquisitions and value selling across business segments. Throughout his journey, he has consistently identified and harnessed new opportunities, championing new strategic initiatives that have fueled market expansion and growth Prior to joining Castrol, Mr. Anoop Jindal began his career journey with BPL Display Devices in 1999 and later worked with Saint-Gobain Abrasives in Sales. He holds aBachelor's degree in Mechanical Engineering from National Institute of Technology (NIT), Kurukshetra and Executive MBA from Narsee Monjee Institute of Management Studies (NMIMS), Mumbai. Reported Earnings • Oct 31
Third quarter 2023 earnings released: EPS: ₹1.97 (vs ₹1.89 in 3Q 2022) Third quarter 2023 results: EPS: ₹1.97 (up from ₹1.89 in 3Q 2022). Revenue: ₹12.0b (up 7.3% from 3Q 2022). Net income: ₹1.94b (up 3.9% from 3Q 2022). Profit margin: 16% (in line with 3Q 2022). Over the last 3 years on average, earnings per share has increased by 8% per year whereas the company’s share price has increased by 7% per year. Announcement • Sep 23
Castrol India Limited to Report Q3, 2023 Results on Oct 30, 2023 Castrol India Limited announced that they will report Q3, 2023 results on Oct 30, 2023 Announcement • Aug 25
Castrol India Limited Appoints Rohit Talwar as Vice-President & Head Marketing, with Effect from 1 November 2023 Castrol India Limited announced the appointment of Mr. Rohit Talwar as Vice-President & Head Marketing, with effect from 1 November 2023, in place of the outgoing incumbent, Ms. Jaya Jamrani. Mr. Rohit Talwar is a Science Graduate from the University of Mumbai and an MBA in marketing from ISB, Hyderabad. He is a Marketer with 21 years of experience in leading high performance multi-cultural teams across country, global and expatriate positions. He has gained hands on experience across developed and growth markets in Castrol group. Mr. Rohit Talwar joined Castrol India Limited in June 2004 as a Management Trainee and was initially in the Sales Manager role, leading sales teams across Punjab, Uttar Pradesh, New Delhi and Maharashtra markets. After this, he held Bikes Brand Manager and Cricket Sponsorship Activation Manager positions before joining Castrol's global marketing team as a Global Brand Manager in the Commercial Vehicles Category. In 2017, Mr. Rohit Talwar returned to Castrol India Limited where he was the Head of Brand and Communication and also served as Deputy Vice-President, Marketing for India and South Asia. In 2019, Mr. Rohit Talwar moved to Castrol Vietnam as the Head of Marketing, which is his current role. He is responsible for both B2C and B2B marketing in a leading market for Castrol Vietnam. His role includes driving innovation as well as delivering business growth in Vietnam. Outside of work, Mr. Rohit Talwar actively participates in marketing industry forums and represent Castrol on several countries and Asia Pacific marketing award juries. Announcement • Aug 03
Castrol India Limited Announces Cessation of Bhairavi Popat, Vice-President & Head Customer Excellence & Operations Effective from 1 October 2023 Castrol India Limited announced the cessation of Ms. Bhairavi Popat, Vice-President & Head Customer Excellence & Operations. Ms. Bhairavi Popat will be moving into another role within bp group. As a result of such movement, she shall cease to be a SMP with effect from 1 October 2023. Responsibilities of the role of Ms. Bhairavi Popat shall be intermittently handled by a senior team member identified by the company. The company is in the process of filling up the resultant vacancy of Ms. Bhairavi Popat in line with the succession plan for SMP. Details about the successor shall be intimated as and when the appointment is made. Announcement • Aug 02
Castrol India Limited Declares an Interim Dividend, Payable on or Before 30 August 2023 The Board of Directors of Castrol India Limited declared an interim dividend of 3 per share, which will be paid on or before 30 August 2023. Price Target Changed • Aug 02
Price target increased by 8.2% to ₹150 Up from ₹139, the current price target is an average from 5 analysts. New target price is 7.0% above last closing price of ₹141. Stock is up 22% over the past year. The company is forecast to post earnings per share of ₹9.67 for next year compared to ₹8.24 last year. New Risk • Aug 01
New major risk - Earnings quality The company has a high level of non-cash earnings. Accrual ratio: 31% This is considered a major risk. Non-cash earnings can arise from many different things. However, if a company consistently has a high level of non-cash earnings, it may be a sign that they are recognizing revenue from customers before the full value of the sales are received as cash or they are not depreciating the value of their assets appropriately. These are practices that inflate earnings, while not providing a similar increase to cash flows. Companies in some select industries naturally have a high level of non-cash earnings and it is not a major concern. However, in the worst case scenario it can be an early sign of performance manipulation by management. Currently, the following risks have been identified for the company: Major Risk High level of non-cash earnings (31% accrual ratio). Minor Risk Dividend is not well covered by cash flows (114% cash payout ratio). Reported Earnings • Aug 01
Second quarter 2023 earnings released: EPS: ₹2.28 (vs ₹2.09 in 2Q 2022) Second quarter 2023 results: EPS: ₹2.28 (up from ₹2.09 in 2Q 2022). Revenue: ₹13.5b (up 8.9% from 2Q 2022). Net income: ₹2.25b (up 9.2% from 2Q 2022). Profit margin: 17% (in line with 2Q 2022). Revenue is forecast to grow 4.0% p.a. on average during the next 3 years, compared to a 10% growth forecast for the Chemicals industry in India. Over the last 3 years on average, earnings per share has increased by 8% per year and the company’s share price has also increased by 8% per year. Announcement • Jul 21
Castrol India Limited Announces Change in Management Castrol India Limited informed of the change in the Senior Management Personnel. Name & Designation of the Senior Management. Personnel ("SMP"): Mr. Sagar Vira, Vice-President & Head - Industrial Sales.Reason for change and effective date: Mr. Sagar Vira will be moving into another role within bp group with effect from 1 August 2023. As a result of such movement, he shall cease to be a SMP with effect from 31 July 2023 (close of business hours). Responsibilities of the role of Mr. Vira shall be intermittently handled by a senior team member identified by the Company. The Company is in the process of filling up the resultant vacancy of Mr. Sagar Vira in line with the succession plan for SMP. Details about the successor shall be intimated as and when the appointment is made. Announcement • Jul 04
Castrol India Limited to Report Q2, 2023 Results on Jul 31, 2023 Castrol India Limited announced that they will report Q2, 2023 results on Jul 31, 2023 Reported Earnings • May 10
First quarter 2023 earnings released: EPS: ₹2.05 (vs ₹2.31 in 1Q 2022) First quarter 2023 results: EPS: ₹2.05 (down from ₹2.31 in 1Q 2022). Revenue: ₹13.1b (up 6.1% from 1Q 2022). Net income: ₹2.03b (down 11% from 1Q 2022). Profit margin: 15% (down from 19% in 1Q 2022). The decrease in margin was driven by higher expenses. Over the last 3 years on average, earnings per share has increased by 7% per year but the company’s share price has fallen by 2% per year, which means it is significantly lagging earnings. Upcoming Dividend • Apr 27
Upcoming dividend of ₹3.50 per share at 5.9% yield Eligible shareholders must have bought the stock before 04 May 2023. Payment date: 09 June 2023. Payout ratio is on the higher end at 79%, however this is supported by cash flows. Trailing yield: 5.9%. Within top quartile of Indian dividend payers (1.6%). Higher than average of industry peers (0.8%). Reported Earnings • Apr 14
Full year 2022 earnings released: EPS: ₹8.24 (vs ₹7.66 in FY 2021) Full year 2022 results: EPS: ₹8.24 (up from ₹7.66 in FY 2021). Revenue: ₹47.7b (up 14% from FY 2021). Net income: ₹8.15b (up 7.5% from FY 2021). Profit margin: 17% (in line with FY 2021). Over the last 3 years on average, earnings per share has increased by 4% per year whereas the company’s share price has fallen by 1% per year. Reported Earnings • Feb 14
Full year 2022 earnings released: EPS: ₹8.24 (vs ₹7.66 in FY 2021) Full year 2022 results: EPS: ₹8.24 (up from ₹7.66 in FY 2021). Revenue: ₹48.4b (up 15% from FY 2021). Net income: ₹8.15b (up 7.5% from FY 2021). Profit margin: 17% (down from 18% in FY 2021). The decrease in margin was driven by higher expenses. Over the last 3 years on average, earnings per share has increased by 4% per year but the company’s share price has fallen by 9% per year, which means it is significantly lagging earnings. Announcement • Jan 17
Castrol India Limited to Report Q4, 2022 Results on Feb 13, 2023 Castrol India Limited announced that they will report Q4, 2022 results at 3:30 PM, Indian Standard Time on Feb 13, 2023 Board Change • Nov 16
Less than half of directors are independent There are 5 new directors who have joined the board in the last 3 years. Of these new board members, none were independent directors. The company's board is composed of: 4 independent directors. 6 non-independent directors. Independent Chairman of the Board Gopal Gopalakrishnan was the last independent director to join the board, commencing their role in 2019. The following issues are considered to be risks according to the Simply Wall St Risk Model: Minority of independent directors. Lack of board continuity. Reported Earnings • Nov 02
Third quarter 2022 earnings released: EPS: ₹1.89 (vs ₹1.88 in 3Q 2021) Third quarter 2022 results: EPS: ₹1.89 (up from ₹1.88 in 3Q 2021). Revenue: ₹11.4b (up 6.2% from 3Q 2021). Net income: ₹1.87b (flat on 3Q 2021). Profit margin: 16% (in line with 3Q 2021). Over the last 3 years on average, earnings per share has increased by 2% per year but the company’s share price has fallen by 8% per year, which means it is significantly lagging earnings. Buying Opportunity • Sep 16
Now 20% undervalued Over the last 90 days, the stock is up 11%. The fair value is estimated to be ₹142, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 6.1% over the last 3 years, while earnings per share has been flat. Buying Opportunity • Aug 08
Now 20% undervalued Over the last 90 days, the stock is up 9.9%. The fair value is estimated to be ₹143, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 6.1% over the last 3 years, while earnings per share has been flat. Reported Earnings • Aug 02
Second quarter 2022 earnings released: EPS: ₹2.09 (vs ₹1.42 in 2Q 2021) Second quarter 2022 results: EPS: ₹2.09 (up from ₹1.42 in 2Q 2021). Revenue: ₹12.6b (up 41% from 2Q 2021). Net income: ₹2.06b (up 47% from 2Q 2021). Profit margin: 16% (in line with 2Q 2021). Over the last 3 years on average, earnings per share has increased by 1% per year whereas the company’s share price has remained flat.