This BSE500 stock hits fresh record high after nearly 10 years; shares up 114% in last 5 years

Shares of Castrol India, one of India's leading lubricant companies, hit their all-time high levels of ₹276 apiece on the NSE in the opening deals on Tuesday, July 16. The stock's previous lifetime high was ₹272, which was touched on December 8, 2014. Yesterday, the stock hit a 52-week high of ₹269.95 on the exchange.

Castrol India has seen their financials grow steadily over the past three years. A look at the company's financial results summary (annual trends) shows that its revenue has increased from ₹2,996.90 crore in 2020 to ₹4,192.10 crore in 2021. In 2022, the figure stood at ₹4,774.49 crore which increased to ₹5,074.61 crore in 2023. Moreover, its net profit or profit after tax (PAT), too, has seen continuous growth from ₹582.90 crore in 2020 to ₹758.1 crore in 2021. Further, the profit came in at ₹815.15 crore and in 2023, it stood at ₹864.13.

The company is a part of the BSE500 basket.

Stock performance

The stock of Castrol India has given 105% returns in the past one year on the NSE and 114% in the last five years. In comparison, the NSE NIFTY has gained 25% in the past 12 months and 116% during the five-year period.

Castrol India Q1 Results

The company, which follows January to December calendar for its financial reporting, reported a 2% increase in its revenue from operations to ₹1,325 crore from ₹1,294 crore reported in 1Q 2023, the corresponding period of the previous year. Moreover, 1Q 2024 witnessed an increase of 5% from ₹1,264 crore in the preceding quarter (4Q 2023), as per the company's financial result statement.

The company’s profit before tax (PBT) for 1Q 2024 reached ₹292 crore, reflecting a 1% rise compared to ₹288 crore in 1Q 2023. The profit after tax (PAT) for 1Q 2024 amounted to ₹216 crore, showcasing a 7% growth from ₹203 crore in 1Q 2023.

Commenting on the results, Sandeep Sangwan, Managing Director of Castrol India had said, "While we experienced initial softness in consumer demand, we delivered a 2% revenue growth, demonstrating the effectiveness of our strategic approach and the resilience of the Castrol brand."

“The successful launch of innovative products last quarter significantly expanded our market share across segments. Our ongoing initiatives, including campaigns like #BadhteRahoAagey and Castrol CRB TURBOMAX Pragati Ki Paathshaala, are gaining traction and set to propel further momentum. These efforts are fueled by our unwavering commitment to brand building and cutting-edge innovation. Reaching over 12,000 truck drivers nationwide through Pragati Ki Paathshaala exemplifies the impact of our programs," Sangwan added.

India Lubricants Market Overview

The India lubricants market size is estimated at 2.87 billion litres in 2024, and is expected to reach 3.15 billion litres by 2026, growing at a compound annual growth rate (CAGR) of 4.76% during the forecast period (2024-2026), according to Mordor Intelligence, a market research entity.

The report further notes that Automotive is likely to be the fastest-growing end-user industry of the Indian lubricants market during 2021-2026, with a CAGR of 6.31%, followed by heavy equipment (3.98%). A recovery in the average mileage of vehicles and an increase in new vehicle sales will likely drive lubricants consumption from the automotive industry during 2021-2026, it adds.