Castrol India shares dividend: Shares of lubricant maker Castrol India shall trade ex-dividend today. The company had announced a final dividend and a special dividend for the eligible shareholders of the company earlier along with the financial results for the December 2024 quarter.
The company board recommended a final dividend of Rs 9.5 per share of the face value of Rs 5 each (which includes a special dividend of Rs 4.5 per share) for the financial year ended 31 December 2024, subject to approval by the shareholders at the 47th annual general meeting (AGM) of the company, said Castrol India in the exchange filing on February 3, 2025.
Shares of Castrol India Ltd settled at Rs 236.10 on Monday, rising about 2 per cent for the day. The total market capitalization of the company stood above Rs 23,300 crore mark. The stock has surged nearly 45 per cent from its 52-week low at Rs 162.80 hit on January 28, 2025. It is 17 per cent below its 52-week high at Rs 284.40, scaled in August 2024.
Castrol India posted a 12 per cent year-on-year (YoY) rise in quarterly profit to Rs 271.39 crore, helped by steady demand for its products. The engine oil maker, 51 per cent owned by British oil major BP, said its quarterly revenue grew 7.1 per cent YoY to Rs 1,353.89 crore in the October to December quarter due to higher sales.
India's two-wheeler sales grew about 3 per cent in the quarter, while those of commercial vehicles rose 1.2 per cent, according to industry data. Castrol India follows the January to December calendar.
Management maintains a bullish outlook on India as a market and expects robust demand for lubricants to remain until the late CY30s and early CY40s, largely attributed to the low penetration of cars in the country. While the threat from EVs is real, EV adoption is expected to be gradual, said Motilal Oswal Financial Services.
"We estimate a 23 per cent Ebitda margin in both CY25 & CY26. Castrol India has always enjoyed a strong brand legacy, and we are confident in its ability to maintain profitability through an improved product mix, stringent cost-control measures, and the launch of advanced products that command better realization. We reiterate our 'buy' rating with a target price of Rs 260," it said.
Castrol’s Q4CY24 results were ahead of estimates and the bulk beat was driven by lower RM costs, as annual rebates in Q4 were higher, said Kotak Institutional Equities. The volume growth remained strong, driven by the recent focus on volumes over margins. According to the company, the bulk of the growth is driven by the mass-market essential segment, it said.
We have marginally increased our CY2025-26 earnings by 2.1-2.6 per cent. Our revised fair value is Rs 200. Driven by significant correction," added Kotak, upgrading the stock to 'add' from 'sell' tag. However, its target price has already been met.
Management indicated the current quarter is not sustainable due to rebates received on an annual LOBs volumes purchase and expected to be in the range of 22-25 per cent levels, said B&K Securities. "Currently, there is a lack of visibility in the product portfolio expanding to the data centres in India," it added.