Castrol - A stalwart at reasonable valuations

An excellent really detailed report covers it all …

Some highlights

  • Industry Leader
  • Fantastic RoE, RoCE, etc ratios
  • Excellent dividend yield provides downside protection
  • Near-nil threat of competition/disruption from new players (I can bet they are not going to be softbank funded lubricant companies coming after them!)
  • Excellent track record of decades
  • MNC pedigree, clean books
  • Ability to pass on price increases of raw materials, pricing power (limited, but it exists)
  • Potential trigger: Reliance-BP petrol pumps (Castrol is basically a BP subsidiary and is now available at reliance fuelling stations)

Some Lowlights

  • Barely any sales growth of late
  • Electric vehicles

I very very strongly suggest you read the report linked above, it covers this and much more.

Also read:

Disc: long, not expecting fireworks, but a steady appreciation. Defensive play in overheated markets.


You need to put up detailed stock analysis. Borrowed ideas are not welcome on this forum. Till you comply, the thread remains locked.