Gulf Oil Lubricants India shares rose over 3% to ₹1,464 on September 2 after Systematix initiated coverage with a “Buy” rating, setting a target price of ₹1,700. This target suggests a potential 20% increase from the current market price.
Systematix believes Gulf Oil’s market share in the lubricants sector will continue to grow, driven by its strategic entry into the electric vehicle (EV) segment and DC cooling liquids. These areas are seen as key growth drivers for the future.
The brokerage forecasts that Gulf Oil’s overall volumes will grow faster than the industry, expecting an 11% compound annual growth rate (CAGR) between FY24 and FY27. They also predict a strong revenue CAGR of 9.7%, EBITDA CAGR of 12.6%, and PAT CAGR of 14.6% over the same period. Gulf Oil’s financial health is expected to remain strong, with return on equity (ROE) and return on capital employed (ROCE) projected at 27%.
In Q1, the company’s revenue grew by 10.14%, while profit increased by 26.49% compared to last year.
By 9:45 am, Gulf Oil shares were trading at ₹1,462, up 3.3% on the NSE. The stock has seen an impressive 112% rise in the past month.
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