See upside in Castrol India, says Mehraboon Irani

Mehraboon Irani of Nirmal Bang Securities told CNBC-TV18, "I have tracked Castrol India from late 1990s when I had visited their office in Walkeshwar. Blue blooded stock, absolute rank underperformer but people are stating that the parent whatever they want to sell is over, the overhang is over but most important is the new management which has come in. It has been very clear that they want to rework on gaining market share and this has been the biggest complaint with market share. Over the last 3-5 years, they had virtually taken a backseat as far as market share goes. They were concentrating only on profit margin and delivering numbers. But when you have a company with such lovely brands foreign company in a way and not able to gain further market share, the market doesn't give it a valuation possibly which you deserve.""So, if we have the next few quarters where the market share picks up, I personally feel Castrol can only be upgraded further from here. So, while the stock ran up to Rs 475 after the management stated that they are going to rework on gaining market share had reacted down because of this overhang of some more selling coming from the parent. That having got absorbed, I feel Castrol at Rs 450-465 is a stock which can only have further upside from here," he said."So, if I was an investor, somewhere I would had lost my patience that the stock has not done too many things over the last 1.5-2 years, I agree, but this is not a stock which should be sold off. There is lot of room on the upside as far as Castrol goes. I believe the market share will slowly pick up for Castrol and the stock should be re-rated."