Industry: Oil & Gas/Lubricants
Profile:
Ownership:
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Product Profile:
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Quarterly
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The stock has made a new 52 week high of 588.35 on BSE today itself and closed at 576.80, rebounding impressively from it’s 52 week low of 380 on BSE which was achieved off late on 28-Feb-11. The stock has posted humongous returns of 51.78% since then and that too in a very short span of time.
Profile:
Castrol India is a part of BP Group Worldwide and was incorporated in 1979. Castrol’s Indian Association traces back to 1910, when C C Wakefield & Company made an entry in market with automotive lubricants. It was first overseas branch of C C Wakefield & Company and it started as a trading unit.
Castrol India is the second largest player in the Indian Lubricant Industry with a market share of around 22% and is the market leader in the retail automotive lubricant segment.
Ownership:
Castrol India Limited is a Public Limited Company with 70.92% of the equity held by Castrol Limited UK (part of BP Group).The FII’s and Insurance Companies hold 7.27% and 5.04% respectively, as on 31st March 2011.
If we go by the trend of the last 4 SHPs posted, FIIs have increased exposure in the stock along with the Institutions. On the other hand DIIs, Non Institutions and Bodies Corporate have shed their stakes in the similar time frame.
Product Profile:
• Industrial - Castrol metalworking fluids, cleaners, corrosion preventives and lubricants.
• Oils - Cylinder oils-crosshead, crankcase oils-crosshead, truck piston engine oils, hydraulic oils, gear oils, compressor oils, turbine oils, refrigeration oils, emulsifiable oils, multi-grades, heat transfer oils and greases.
Recent Corporate Actions:
* The 150% dividend comprises of 50% final dividend and 100% special dividend.
For the year ending December 2010, company has declared an equity dividend of 150% amounting to Rs. 15 vis-à-vis an equity dividend of 250.00% amounting to Rs. 25 per share for the year ending 2009.
Financials:
For the year ending December 2010, company has declared an equity dividend of 150% amounting to Rs. 15 vis-à-vis an equity dividend of 250.00% amounting to Rs. 25 per share for the year ending 2009.
Financials:
Quarterly
Figures (In Crores), Fiscal Year End is Dec-31
QoQ Analysis: Analyzing Q1 numbers for this fiscal, the topline has shot up by 7.89% at 753.2 Crores (31-March-11) and bottom-line has increased 29% at 136.6 Crores (31-March-11).The operating profit of the company has also risen 15.86% to 181.9 Crores vis-à-vis 157 Crores in the previous quarter. The profitability has increased, despite the fact that total expenses has risen 5.58% on a Q-o-Q basis. PBITDM (%) and PATM (%) has shown a decent increase on a quarterly basis.
YoY Analysis: On comparing the Q1 numbers of this fiscal with Q1 of FY10-11, the topline has increased by 14.82% on a Y-o-Y basis. The bottom-line has increased impressively by 16.55%, despite the fact that total expenses has also risen by 20.02% in a similar time-frame. The rise in total expenses is primarily attributable to increase in raw material cost. Though the other income component has also contributed it’s bit in the increased profitability.
Yearly
Yearly
Figures (In Crores), Fiscal Year End is Dec-31
Analyzing the yearly numbers, the sales figure has shot up 17.82% to Rs. 2742.90 Crores as on December-10. The operating profit has shown up a whopping increase of 25.29% to 733.2 Crores vs. 585.2 Crores in the previous FY end, considering the fact that total expenses has increased 15.31% to 2009.70 Crores.
CAGR basis: On a CAGR basis, the company has posted an awesome increase of 34% in the last 5 years. The sales have also increased 8% on a CAGR basis. The operating profit has also risen at a rate of 9.71% despite the fact that total expenses have also risen at the rate of 7% in the same tenure.
Returns:
The recent quarter has been the best quarter in the previous 4 quarters, posting returns of 19.12%. The last quarter of calendar year 2009-10 was the worst quarter, posting returns of -9.44%.
The stock has posted YTD returns of 14.64% till 30-Jun-11 and 18.83% returns as on 30-jun-11 on a year-on-year basis.
The stock has made a new 52 week high of 588.35 on BSE today itself and closed at 576.80, rebounding impressively from it’s 52 week low of 380 on BSE which was achieved off late on 28-Feb-11. The stock has posted humongous returns of 51.78% since then and that too in a very short span of time.
• Castrol India Ltd. has posted impressive growth in topline and bottom-line over the years even in the tough times. The surge in raw material expenses continues but company has still posted a robust growth in Operating Profit.
• Besides this, company has strong brand power in the markets and enjoys a debt free status, high ROEs, distinctly superior delivery of products and improving cash flows. Considering these factors a higher PE multiple for the company vis-à-vis its peers is justified.
• Last but not the least, company enjoys a brand-loyalty and the promoters also have vast experience and expertise in this industry.
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