Buy Castrol India; target of Rs 253: Motilal Oswal
Motilal Oswal is bullish on Castrol India has recommended buy rating on the stock with a target price of Rs 253 in its research report dated January 31, 2019.
February 01, 2019 / 04:08 PM IST
Motilal Oswal's research report on Castrol India
Castrol India reported a 1% decline in its sales volume for 4QCY18 due to the base effect (volume growth of 15.8% in 4QCY17). However, decline in oil prices resulted in gross margin and EBITDA expanding. EBITDA stood at INR3.2b (our estimate INR2.5b, +4% YoY, +26% QoQ). PAT stood at INR2.1b (our estimate INR1.8b, +8% YoY, +21% QoQ).
The stock is trading at 20.2x CY19E EPS of INR7.2. Our fair value stands at INR253 (35x CY20E EPS), implying 55% upside. Maintain Buy.
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