Gulf oil demerger

Gulf Oil Corporation India Ltd (GOCL), which de-merged the lubricants division into a separate entity Gulf Oil Lubricant India Ltd (GOLIL), were listed on BSE and NSE today

The companyas lubricant business will be listing in a month. It has been ramping up capacity Expects over Rs 1,000 crore sales per year from this segment. As per Mr. Subhash Pramanik, Managing Director

Any views on the above

:

Gulf Oil Corporation

Price:

147

P/E: 25.00

BOOK VALUE (Rs):117.28
EPS (TTM):5.88
PRICE/BOOK:1.25

Gulf Oil Corporation India Ltd (GOCL), which de-merged the lubricants division into a separate entity Gulf Oil Lubricant India Ltd (GOLIL), were listed on BSE and NSE today.

Read more at: http://www.moneycontrol.com/news/business/lubricant-business-to-get-listeda-month-gulf-oil_1112513.html?utm_source=ref_article

Gulf Oil Corporation India Ltd (GOCL), which de-merged the lubricants division into a separate entity Gulf Oil Lubricant India Ltd (GOLIL), were listed on BSE and NSE today.

Read more at: http://www.moneycontrol.com/news/business/lubricant-business-to-get-listeda-month-gulf-oil_1112513.html?utm_source=ref_article

Gulf Oil Corporation India Ltd (GOCL), which de-merged the lubricants division into a separate entity Gulf Oil Lubricant India Ltd (GOLIL), were listed on BSE and NSE today.

Read more at: http://www.moneycontrol.com/news/business/lubricant-business-to-get-listeda-month-gulf-oil_1112513.html?utm_source=ref_article

I think the demergers are very good oportunity specially when market is so high, there are two other demergers going on that i know of.

thanks

Which two are you talking about?

Is one Crompton?

Highlights of the Concall of Gulf Oil Lub by Capital Mkt;

  • The company achieved a growth of 12% in its net income from operations at Rs. 230 crore in Q1FY’15 as compared to previous year same quarter, when it was Rs. 207 crore.Profit before Tax for the quarter has grown by 11.8% at Rs. 26.57 crore compared to Rs. 23.76 crore in the corresponding quarter of the previous year. Profit after tax was Rs. 18.03 crore in Q1FY’15.Company has delivered EBIDTA margins of 13.0% for the quarter vs 12.25% in FY’14 for Lubricants business.
  • Volume growths have been positive during the quarter, with emerging signals towards the end of the quarter that could lead to a pick up in the overall related economic activities & demand factors.
  • With respect to automobile industry vehicle sales during the quarter â the Commercial Vehicles segment de-grew by around 16%, passenger vehicles came into the positive territory marginally with a 1% growth & 2 wheeler growths picking up to 13 %. Tractor sales growth was not positive after a stellar performance last year, the delay in monsoons impacting this segment.Company expects to better its performance in coming quarters given above positives.
  • The company continued to invest in strengthening its brand position by launching a special outdoor campaign â “Oil Change, Life Change”, coupled with an exciting Consumer Promo â"Gulf Super King Size (SKS) Offer" in Tamil Nadu â which synchronized with the Indian Premier League (IPL) in which Gulf Oil sponsors the Chennai Super Kings team.
  • A Special All- India Rural Retailer focused van promotion initiative was launched to increase distribution to boost the sales of diesel engine oils for the tractor segments & motorcycle oils in leading agricultural markets during the quarter. In addition, for key transport markets, a number of retailer meets were held, where exciting retail promotions were announced to increase secondary sales. This helped to increase sales for smaller packs, which enabled the company to improve it’s margins & record positive volume growths during the quarter.
  • The company has no long term debt at the end of quarter ended June 2014. The company has only working capital loan of around Rs 80 crore.
  • The company is doing a capex of Rs 40 crore for Silvassa plant increasing its capacity from 75000 tonne to 95000 tonne in addition to Rs 120 crore capex for Chennai plant for setting up a new 75000 tonne. Silvassa plant is expected to be complete by December 2014 while Chennai plant is expected to start from Q3FY’15 post which it would take around 2 year to complete.The company expects a volume growth of 2-3 times overall industry growth.The company expects a topline growth of 10-15% in FY’15 while maintaining its margin above 12%.

After demerger, it’s now gulf lub and GOCL

For GOCL

MNC co, total 900 cr mkt cap (4.95 cr shares)

75% promoter holding (Hindujas)

Top 100 shareholders hold 20% remaining shares

Mkt float max 20 lac shares

Debt free co.

650 cr valuation of investments in Quaker chemicals (USA),Has 4.27 lacs shares valued @ $197, receive $ 3 million as dividend yearly

10000 cr value of land parcel kept as collaterals

₹25cr to get yearly on collateral given

Diversified co, into Mining, explosives (defence too), infrastructure and reality

Ready to move project at Ecopolis, yelankana Bengaluru, total 75 lac sq feet, in 3 phase, Phase I ready, ₹35 psqft rentals

100 acre plot at Kukatpally Hyderabad, planning for project for residential commercial, govt approvals received

500 acre plot in dispute at Kukatpally Hyderabad, with udasin mutt, which would be resolved

Has land parcels pan India

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