Castrol India Limited is an industrial and automotive lubricant manufacturing company. It is also the largest lubricant manufacturer in the country and specialises in making various oils and corrosion preventives.Market capitalisation
As of 25 July 2018, Castrol India Limited has a market capitalisation of a little over Rs.16,100 crore.
Company’s Wealth and Recent Performance
- For the year ending December 2017, the company generated a revenue of Rs.3,667.97 crore, up from Rs.3,457.60 crore from the previous year. This increase in revenues were largely due to a number of infrastructural investments undertaken by the company.
- Profits were also on the rise for the year ending December 2017, with the figures being recorded at Rs.691.81 crore up from Rs.674.91 crore - a Rs.16.90 crore increase in profit.
- Expenses for the same period rose to Rs.2,597.90 crore from Rs.2,411.90 crore or a Rs.186 crore increase.
- Basic Earning per Share (EPS) dropped to 6.99 from 13.65 - the lowest when data from the previous four Decembers are considered.
- For the quarter that ended in March 2018, total income from operations stood at Rs.927.10 crore - a sharp fall from Rs.970.30 crore recorded over the previous quarter that ended in December 2017.
Castrol India Limited Stock Trends in 2018
- On the 1st of January, when the first quarter of 2018 began, the company’s stock was priced at Rs.191.75 per share, which dropped by a few points before rising to Rs.195.00 per share on the 5th of January. For the next two weeks, Castrol India Limited stocks were on a free fall of sorts, dropping constantly on a day-to-day basis. The month came to an end with stock prices holding at Rs.185.40.
- When February opened, stocks prices had fallen further to Rs.183.75 per unit. Prices bottomed out for the month on the 6th at Rs.179.45 after which they made considerable strides towards improvement. On the 13th, the stock traded at Rs.198.20 before falling steeply for the next two weeks. The 18th saw this stock trade at Rs.198.20 before going up Rs.201.40 on the final day of the month. The fall this month was mostly due to a turbulent market across the world, which hindered investor confidence.
- For the month of March, the company’s stock didn’t record much of a change and mostly stayed in the Rs.200 range per scrip, barring a couple instances. On the 1st of March 2018, the stock traded at Rs.201.80, which dropped to Rs.200.80 on the 5th. Price per stock went down to a monthly low of Rs.199.90 on the 6th due to slightly weaker conditions. Rates bounced back by the 12th to trade at a monthly high of Rs.207 per share. The month ended on the 30th at a respectable price of Rs.204.90 per share.
- In April, Castrol India Limited shares opened on a relatively respectable sum of Rs.205 per scrip. The company had to endure a far worse period with stock prices dropping considerably over the latter half of the month as investor sentiments remained weak. On the 26th, the scrip was trading at Rs.192.40 per share - which was the lowest seen since the 23rd of February. With the company announcing dividends for its investors, and as sentiments improved owing to this, stock prices went up slightly to close at Rs.194.85 per share on the final day of the month.
- In the month of May, the company’s stock was on an extended losing run as markets were weak and trading was heavily affected. On the 1st, the stock traded at Rs.194.85 per scrip, which rose to a monthly high of Rs.200.30 per scrip. From the 3rd onwards, share prices continued to fall consistently due to weak trading. By the 9th, share prices went down to Rs.181.60 before rising slightly to Rs.182.65 per scrip. The 11th recorded the stock trading at Rs.178 per share which then fell regularly to go down to Rs.162.75 per share on the 24th of May - the lowest rate stock price for the preceding two plus years. This bounced back soon to end at Rs.180.60 per share on the 28th of May. When the month ended, the stock was priced at Rs.170.90.
Should you invest in Castrol India Limited?
- For the quarter that ended in March 2018, unaudited Total Comprehensive Income for the company was recorded at Rs.181.8 crore, a rise from the Rs.179 crore seen during the previous quarter which ended in December 2017.
- Total revenue for the quarter ending in March 2018 was Rs.949.9 crore which was a fall from Rs.1030.6 crore seen during the previous quarter.
- For the quarter ending in December 2017, the company recorded revenues of Rs.986.7 crore and revenues from year ending in December 2017, the figures were holding at Rs.3,935.2 crore. For the same period, expenses stood at Rs.674.6 crore and Rs.2,865.2 crore respectively.
- Profit figures on the other hand also seemed to be on the rise with Rs.282.1 crore reported for the quarter ending in March 2018. This was the before tax figure and the after tax sum was reported at Rs.181.8 crore for this period. The quarter ending in December 2017, on the other hand, recorded much higher profits of Rs.312.1 crore before tax and Rs.115.4 crore after tax. For the year ending in December 2017, profits before tax stood at Rs.1,070 crore while the after tax figure stood at Rs.691.8 crore.
- Earnings per share for a scrip of Rs.5 was Rs.1.84 for the quarter ending in March 2018, while it was Rs.1.81 per for the quarter ending in December 2017. For the year ending in December 2017, earning per share stood at Rs.6.99.
- The management team at the helm are highly experienced and are competent at what they do. They have led the company through some important developments and have managed to keep the stock prices growing at a steady rate.
- The performance of this stock has been bullish for most of the last few years, except the last few months where it has taken a bearish note. Nevertheless, it has recovered and is making strides into stabilising and reaching the high figures that were seen over the previous years.
Castrol India Limited is a subsidiary of Castrol Limited, a British-based industrial and automotive lubricant company with a massive presence in the Indian subcontinent. The company was listed in India in 1979 and has been a mainstay in the country’s lubricant industry ever since, enjoying a market share that goes beyond 48%. To serve its end, the company has 5 manufacturing plants which are used to service over 270 distributors, who in turn serve 70,000 retail outlets across the nation.
History of the Company
As per history, Castrol India Limited has been operational in India since before independence, with it first being seen in the market back in 1910. The company was incorporated as Indrol Lubricants and Specialities Pvt. Ltd, in 1979 before listing itself in the BSE three years later in 1982, during which period it was also converted to a public limited company. On 1 November 1980, the company’s name was changed to Castrol India Limited and was also manufacturing other products such as pharmaceutical jellies, telephone cable jellies through a collaboration with Dussek Campbell, a UK-based firm.
Management of the Company
Omer Dormen is the Managing Director of Castrol India Limited Limited and has been in the role since the October of 2015. Prior to this, Mr. Dormen served as the Sales Director for British Petroleum (BP), Castrol’s parent company, for the Commonwealth of Independent States, Turkey and Caspian Region from December 2010 to October 2015. Besides these, Mr. Dormen has held various leadership roles at BP, wherein he handled the lubricants business after Castrol merged with BP in Turkey. Omer Dormen is a business degree holder from the University of North London.
SM Dutta is an enterprising and management professional with a cumulative experience of over 22 years in coming up with strategies and implementing them in order to increase growth and and widen their customer base. He was popularly known as the former Chairman of Hindustan Unilever and spearheaded the HUL’s initiatives to bring about manifold growth for the company’s efforts. Apart from this, Mr. Dutta holds various board and advisory roles for a number of startups and other major enterprises around the world.
R Gopalakrishnan serves as an Independent Director for Castrol India Limited. Besides this, he is known for being the Executive Director at Tata Sons Ltd. and holds board positions in other Tata entities such as Tata Power, Tata Technologies, ABP Pvt. Ltd, etc. Mr. Gopalakrishnan comes with a robust educational background including a honorary B.Tech from IIT Kharagpur and Advanced Management diploma from Harvard Business School.
Castrol India Limited Listings in NSE, BSE, and Listings
The equity shares of Castrol India Limited are available for trading on National Stock Exchange of India Limited (NSE) and the Stock Exchange Limited (BSE), Mumbai. The codes for the company’s stocks are as follows:
- NSE Code: CastrolInd
- BSE Code: 500870
- ISIN: INE172A01027
- Sector: Lubricants
Besides, this Castrol India Limited is part of various stock market indices, they are as follows:
- Nifty 200
- Nifty 500
- S&P BSE Oil and Gas
- S&P BSE Energy
- Nifty MNC
- Nifty LargeMidcap 250
- S&P BSE 500
- Nifty Quality 30
Castrol India Ltd. Technopolis Knowledge Park, Mahakali Caves Road, Andheri (East) Mumbai - 400093 Maharashtra
General Enquiry: +91 22 66984100 Technical Enquiry: 1800 209 8100/+91 22 6783 9800
Southern Regional Office:
Rayala Towers, 5th Floor, 781 – 785, Anna Salai, Chennai 600 002 Tamil Nadu
Phone: +91 33 66264700 Fax: +91 33 2800389
Stocks vs. Mutual Funds: here's what we recommend
Stock market investments require a lot of research and knowledge. They do not generally offer any tax benefits and are regarded as high-risk investments. Hence,it is crucial to have a diversified portfolio. At Bankbazaar, we encourage our readers to invest on mutual funds.It doesn't require a lot of knowledge and equity linked mutual fund schemes offer tax benefits. Additionally, since mutual funds comprise stocks from multiple companies, they help in building a diversified portfolio.
The contents of this post/blog does not constitute financial or other professional advice nor does it imply in any manner a principal-agent relationship, and is not a professional advice on a specific financial matter.