Gulf Oil Lubricants India stock rises as Systematix initiates coverage with 'buy'

Gulf Oil shares have rallied a massive 112 percent in the past month.

Shares of Gulf Oil Lubricants India surged over 3 percent to Rs 1,464 in early trade on September 2 after Systematix initiated a "Buy" rating on the stock with a target price of Rs 1,700, citing strong growth prospects. The new price target has an implied upside of 20 percent from the current market levels.

The brokerage highlighted that Gulf Oil’s market share in the lubricants segment is expected to grow consistently, supported by the company’s strategic entry into the electric vehicle (EV) segment and DC cooling liquids. These initiatives are seen as key drivers for long-term growth.

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Systematix projects that Gulf Oil’s overall volumes will outpace the industry, forecasting a compound annual growth rate (CAGR) of 11 percent between FY24 and FY27. The brokerage also estimates a robust revenue CAGR of 9.7 percent, EBITDA CAGR of 12.6 percent, and PAT CAGR of 14.6 percent over the same period. Gulf Oil’s financial metrics are expected to remain strong, with return on equity (ROE) and return on capital employed (ROCE) projected at a healthy 27 percent.

In Q1, the company's top line increased by 10.14 percent and the profit increased by 26.49 percent YoY.

At about 9:45 am, shares of the company were trading at Rs 1,462, up 3.3 percent from the last close on the NSE. Gulf Oil shares have rallied a massive 112 percent in the past month.

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