February 23, 2017 / 17:37 IST
Castrol India reported its Q4CY16 numbers, which were largely in line with our estimates on the operational front. Reported revenues declined 1.1% YoY to Rs 782.2 crore (our estimate: Rs 808.6 crore) due to the impact of demonetisation during the quarter. Overall volumes increased 2% YoY to 47 million litre largely in line with our estimates of 47.5 million litre.
Outlook
The company’s focus on the personal mobility segment will remain the key driver for the automotive lubricant business and it will create value for shareholders. We value Castrol India at 33x CY18E EPS of Rs 14.5 to arrive at a target price of Rs 478 with a BUY rating.
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