HDFC Securities is bullish on Gulf Oil Lubricants has recommended buy rating on the stock with a target price of Rs 1027 in its research report dated 09 Aug 2018.
HDFC Securities' research report on Gulf Oil Lubricants
Gulf Oil Lubricants (Gulf Oil) 1QFY19 was healthy led by 33% YoY volume growth. Revenue at Rs 3.9bn in 1QFY19 grew by 39.4%. Gross margin declined by 136bps YoY to 46%. EBITDA grew by 31% to Rs 645mn. PAT at Rs 400mn was up by 17%. PAT lagged EBITDA on account of commissioning of Chennai plant and forex loss of Rs 20mn.
We expect Gulf to continue registering 2-3x industry volume growth. Maintain BUY with TP of Rs 1,027 @ 25x FY20E EPS.
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