Moneycontrol Be a Pro
Get App
Last Updated : May 23, 2019 11:11 PM IST | Source: Moneycontrol.com

Buy Gulf Oil Lubricant; target of Rs 1017: Dolat Capital

Dolat Capital is bullish on Gulf Oil Lubricant has recommended buy rating on the stock with a target price of Rs 1017 in its research report dated May 17, 2019.

Broker Research @moneycontrolcom
 
 
live
  • bselive
  • nselive
Volume
Todays L/H
More

Dolat Capital's research report on Gulf Oil Lubricant


GOLIL’s revenue and profitability were in line with our estimates. Volume in Q4FY19 grew 10% YoY. While economic factors were slowing down and there was a slowdown in auto sales, GOLIL outperformed the industry by 4-5x in Q4FY19. Sales came from personal mobility, industrial and infrastructure segment. DEO segment had a slowdown. Core sales growth for FY19 was 18% YoY, which came from new customers and new segments. GOLIL has taken adequate price hikes of 2-3% each in December, 2018 and March 2019 to increase realization/L. B2C segment has done well in the quarter. The volume growth will continue to outperform the industry and the management expects to grow at least 3x the industry average.


Outlook


This growth will be driven by product launches, expansion of distribution channels, and focus on gaining more OEM tie-ups. Maintain Buy, with a TP of ` 1,017 based on 20x FY21E earnings.


For all recommendations report, click here


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




The Great Diwali Discount!
Unlock 75% more savings this festive season. Get Moneycontrol Pro for a year for Rs 289 only.
Coupon code: DIWALI. Offer valid till 10th November, 2019 .
First Published on May 23, 2019 11:11 pm
Loading...
Sections
Follow us on
Available On
PCI DSS Compliant