Bonanza Research has recommended hold rating on Castrol India , in its March 18, 2010 research report.
"Castrol India limited (CIL) reported better full year performance with 250% dividend for CY09 which is highest in the last 15 years, that includes final dividend of Rs15/share and interim dividend of Rs 10/share. CIL has also proposed the issue of bonus shares at 1:1 ratio whose record date yet to be announced. CIL has reported an impressive year end result with better margins and is expected to deliver an in line performance in the coming year. With the revival of the economy volume is expected to rise, however higher inflation and competitive price would affect the margins and accordingly lower margins are projected for CY10E. At CMP Rs 691 the share is trading at a forward earning multiple of 22.6x CY10E. Long term conservative investors can continue to hold the scrip," says Bonanza Research report.
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