Moneycontrol
May 19, 2017 05:26 PM IST | Source: Moneycontrol.com

Buy Gulf Oil Lubricants; target of Rs 808: Edelweiss

Edelweiss is bullish on Gulf Oil Lubricants has recommended buy rating on the stock with a target price of Rs 808 in its research report dated May 17, 2017.

Buy Gulf Oil Lubricants; target of Rs 808: Edelweiss

Edelweiss' research report on Gulf Oil Lubricants


Gulf Oil Lubricants’ (GOLI) Q4FY17 revenue, at INR3.0bn, was up 10% YoY driven by 3.5% YoY volume growth (10% YoY like-to-like growth excluding one-off institutional order in Q4FY16) and strong improvement in realisation of 6%. Better realisation also helped GOLI report gross margin of 47.2%, up 40bps YoY.


Outlook


We continue to build 16% revenue CAGR driven by 12% growth in volumes and expect 270bps improvement in RoCE to 42.6% over FY17-19. We maintain ‘BUY’ with a target price of INR 808 (INR 784 earlier).


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