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Target: ₹813
CMP: ₹417.80
Gulf Oil Lubricant India Ltd (GOLIL), India’s 2nd-largest lubricant company after Castrol, has impressively gained market share and demonstrated resilience during the tumultuous past three years.
The demand for lubricants is expected to surge due to the pick-up in the commercial vehicle (CV) cycle, improving freight movement on national highways, rising industrial output, and increasing sales of utility vehicles (UVs). These factors are expected to drive strong demand for lubricants from the B2B segment, which is responsible for generating 35-40 per cent of GOLIL’s lubricant & oil volumes.
Read: SCINNTC commissions warehouse in Gujarat for Gulf Oil Lubricants
Additionally, GOLIL is proactively expanding its dealer network in new geographies to enhance the scope for its B2C lubricant business, which generates 60-65 per cent of GOLIL’s lubricant & oil volumes at better margins compared to its B2B business.
Overall, GOLIL’s strategic efforts are expected to positively impact its market share and financial performance, further solidifying its position as a leading player in the Indian lubricant industry.
We initiate coverage on GOLIL with a price target of ₹813 (10.0X FY26 P/E) in the next 24 months.
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