Dolat Capital recommended accumulate rating on Castrol (India) with a target price of Rs 139 in its research report dated June 23, 2020.
Dolat Capital's research report on Castrol (India)
Castrol India had a roller coaster CY19 on a macro level as well as company level. Ambiguity around GST, volatility in raw material price, crude oil and currency movement impacted the volume growth and profitability. CSTRL focused of innovation, new product launches, moved into adjacencies and OEM tie ups to drive growth. They have been continuously working on protecting margins with sustainable growth and are taking pricing actions time and again.
Outlook
With the de-growth in volumes due to economic slowdown and demand disruption due to Covid, raw material prices getting stable and improving product mix towards personal mobility segment, CSTRL profitability should gain traction in CY21 after a weak CY20.
For all recommendations report, click here
Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.WEBINAR: Tune in to find out how term insurance can provide risk protection during tough times. Register Now!
Read More
