Motilal Oswal is bullish on Castrol (India) has recommended buy rating on the stock with a target price of Rs 185 in its research report dated June 24, 2020.
Motilal Oswal 's research report on Castrol (India)
Castrol India's (CSTRL) CY19 annual report highlights the company's efforts to improve product mix, control costs and debottlenecking. Key insights highlighted below: A challenging environment with 14% decline in total vehicle sales resulted in CSTRL clocking 4% lower volume in CY19 as against industry growth of <1%. However, strong support in Passenger Cars and Motorcycle Oils (PCMO) segment resulted in 11% growth in gross margin per liter to INR104.4 in 2019. Since CY03, CSTRL has registered YoY PAT growth except for four (in CY04, CY11, CY12 and CY14) years. In CY19, CSTRL logged in PAT growth of 16.8% aided by improved product mix, robust cost control and debottlenecking.
Outlook
We maintain Buy on the stock with target price of INR185.
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