Get App
Last Updated : May 03, 2019 01:48 PM IST | Source:

Accumulate Castrol India; target of Rs 174: Dolat Capital

Dolat Capital recommended accumulate rating on Castrol India with a target price of Rs 174 in its research report dated May 02, 2019.

Broker Research @moneycontrolcom
  • bselive
  • nselive
Todays L/H

Dolat Capital's research report on Castrol India

CSTRL’s Q1CY19 volumes were marginally below our estimates at 50.4 TKL. Revenue increased 5% YoY and decreased by 5.5% QoQ, due to growth in the personal mobility segment, focus on channels, and new premium products. Gross spreads rose by 2% on a sequential basis. We expect spreads to remain stable/expand going forward, as CIL has already hiked prices in Q1CY19. CSTRL’s management is pessimistic about its performance in H1CY19, due to the slowdown in economic activities. However, it is confident of outperforming the industry growth rate of 3% - 4% on a full year basis. Volume growth with spreads performance will be the key monitorable.


Given significant under performance of the stock price for a prolonged period, CSTRL business performance in the next two quarters will be crucial for the long term stock outlook. We maintain Accumulate, with a target price of ` 174, to trade at 20x CY20 EPS.

For all recommendations report, click here

Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on are their own, and not that of the website or its management. advises users to check with certified experts before taking any investment decisions.

Subscribe to Moneycontrol Pro and gain access to curated markets data, exclusive trading recommendations, independent equity analysis, actionable investment ideas, nuanced takes on macro, corporate and policy actions, practical insights from market gurus and much more.
First Published on May 3, 2019 01:48 pm
Follow us on
Available On
PCI DSS Compliant