ICICI Securities's research report on Gulf Oil Lubricants India
Gulf Oil (GOLI) delivered a relatively strong Q3FY25 with 10%/21.6% YoY growth in EBITDA/PAT to INR 1.2bn/INR 0.98bn (ISec: EBITDA/PAT INR 1.1bn/INR 0.87bn). Better product/segment mix, lower crude prices and premiumisation drove EBITDA margin to 13.5%, up 90bps QoQ and above I-Sec’s estimate of 12.8%. Double-digit growth in mobility and B2B segments with recovery in AdBlue volume reflected in core lubricant/AdBlue volume of 38.5mn/36mn litres (+6.9/+16.1% YoY, ahead of I-Sec’s est 38/35mn). Gross margin was strong, up ~47bps/36bps QoQ/YoY. We remain positive on GOLI’s prospects over the next 2–3 years with steady volume growth, stronger margins and limited threat from EVs, at least, in next 3–5 years.
Outlook
Valuation of 12.4x FY27E PER/8x EV/EBITDA remains very attractive. Maintain BUY with a revised TP of INR 1,630 (prior: INR 1,550).
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