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.
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.
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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