Time period given by analyst is one year when Gulf Oil Lubricants India Ltd. price can reach defined target.
Gulf Oil Lubricants India Ltd., incorporated in the year 2008, is a Mid Cap company (having a market cap of Rs 2878.80 Crore) operating in Petrochemicals sector.
Financials
For the quarter ended 30-06-2021, the company reported a Standalone Total Income of Rs 428.17 Crore, down -19.23 % from last quarter Total Income of Rs 530.08 Crore and up 68.49 % from last year same quarter Total Income of Rs 254.11 Crore. Company reported net profit after tax of Rs 30.35 Crore in latest quarter.
Investment Rationale
With stabilizing base oil prices, recent RSP hikes and volume recovery, EBITDA margin should return to 15%+ by FY23E, and RoICs to the earlier range of 40-45% from FY24E. GOLI is valued attractively at FY23E/24E FCFF yield of 8%/11% and stock at a 5-year low (excl. Mar’20 Covid).
Promoter/FII Holdings
Promoters held 72 per cent stake in the company as of June 30, 2021, while FIIs held 10.1 per cent, DIIs 5.5 per cent and public and others 12.4 per cent.
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