Q3FY21 Company Update - Gulf Oil Lubricants - ICICI Direct

Gulf Oil Lubricants' (GOL) operating revenue for Q3FY21 increased 14.2% YoY to Rs. 481.9 crore on account of robust growth in sales volume. Volumes were at 33 million litre, up ~16% YoY. EBITDA/litre was at Rs. 25.3/litre, down 7.1% YoY. EBITDA came in at Rs. 83.4 crore, up 7.5% YoY due to better topline. Subsequently, PAT increased 14.6% YoY to Rs. 64 crore.

Valuation & Outlook

Gulf Oil's focus on personal mobility and OEMs will remain key growth driver. The management indicated that the company is planning to increase its share in PCMO and industrial segment. The company's battery business also turned positive during the quarter. Acquisition of minority stake in Indra Renewables, the company operating in EV space, also gives the company opportunity to explore the EV space in India. However, for lubricants segment, upcoming disruption like those of electric vehicles is a concern. We maintain HOLD rating on the stock. We roll over valuations to FY23E and value the company at 14x FY23E EPS to arrive at a target price of Rs. 725/share (vs. earlier TP: Rs. 810/share).

For details, click on the link below: https://www.icicidirect.com/mailimages/IDirect_GabrielIndia_CoUpdate_Feb21.pdf

Shares of Gulf Oil Lubricants India Ltd was last trading in BSE at Rs.734.9 as compared to the previous close of Rs. 750.75. The total number of shares traded during the day was 1239 in over 302 trades.

The stock hit an intraday high of Rs. 763 and intraday low of 725.3. The net turnover during the day was Rs. 918006.

Source : Equity Bulls

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