Gulf Oil Lubricants India Ltd Multibagger 2021 Analysis

This article we can explore the possibility of Gulf oil Lubricants India Ltd as a Multibagger 2021 Stock based on Value Investing principles.

Websitewww.gulfoilindia.com
CMPRs. 455.00

About Gulf Oil Lubricants India Ltd

Gulf Oil Lubricants India Ltd (GOLIL), part of the Hinduja Group, is an established player in the Indian Lubricants Industry. Gulf Oil International (GOI), parent of GOLIL, owns the Gulf brand globally (except USA, Spain & Portugal). Previously a part of Gulf Oil Corporation Limited, today, GOLIL, as part of the parent company GOI, enjoys a presence in over a 100 countries

With operations primarily in the Automotive and Industrial segments, and a leading presence in the open market through a stellar distributor network, gulf oil supply directly to OEMs and other B2B customers (Industries, Infrastructure, Mining & Fleet Customers, State Transport and Government Undertakings).

Gulf oil company is the Fastest Growing Lubricant Player by consistently outperforming the industry growth rate YOY. With 11% CAGR volume growth in the last 8 years, GOLIL has recorded 3x-4x times growth of the lube industry. Company is collaborated with Top OEM’s and B2B customers like Ashok Leyland, Mahindra, Swaraj Volvo Penta, MAN, Bharat Benz Whitmore, Schwing Stetter and Bajaj. These significant partnerships have helped to adapt and pioneer many go-to-market models in the automotive industry like co-brand oils, genuine oils and approved oils.

The ‘Gulf Oil’ brand enjoys a position among the Top 3 lubricant brands with regards to brand awareness, purchase consideration and other parameters.
Company is proud to have the modern legend, Mahendra Singh Dhoni as companies Brand Ambassador. Comprehensive Product Portfolio covers Automotive, Industrial and Marine applications, with approvals from bodies like API, JASO, ACEA and leading global OEMs.

Gulf in India is the pioneer of the ‘long drain interval’ platform and has several industry firsts to its credit, helping in establish strong positions in the commercial vehicles sector (Diesel Engine Oil and 2-Wheeler Motor Oil segments).

The ‘Gulf Oil’ brand enjoys a position among the Top 3 lubricant brands with regards to brand awareness, purchase consideration and other parameters.
Gulf oil is known for rich history and association with the world of sports, and is proud to have the modern legend, Mahendra Singh Dhoni as Brand Ambassador.

Company also have a rich history of partnering with multiple sports in the past, we have sponsored and partnered with Manchester United Football Club, multiple teams in World Endurance Championship (WEC) and World Super Bike Racing (WSBK). And currently company are in partnership with McLaren in F1 racing, M S Dhoni & Hardik Pandya in Cricket. Gulf oil are also associated with The Chennai Superkings in IPL.

Gulf Oil Lubricants India Ltd Multibagger 2021 Analysis

Products

  • Automotive Lubricants
  • Industrial Lubricants
  • Batteries
  • Marine

Services

  • Lubricants
  • Fuel Retail
  • Gulf Express
  • Gulf Aviation
  • Car Care
  • Gulf Nanotec Fuel additive

Profit & loss

Gulf Oil Lubricants India Ltd Multibagger 2021 Analysis

Warren Buffett Checklist

Factor Outcome
Economic moatModerate
GrowthModerate
ValuationGood
DebtModerate
IntegrityGood

Positives

  • Stock is providing a good dividend yield of 3.52%.
  • Company has a good return on equity ROE of 25%
  • Revenue increased 20% in current year post Covid recovery

Negatives

  • Sales Growth for past 3 Year average is low
  • Declining Sector of Oil Lubricants as EV entering
  • Moderately High Debts

Summary

As per the Value Investing grounds the company have Multibagger Potential at current over-price valuation

DISCLAIMER

Logos are Copyright of respective owners. The advice or opinions here is not for public distribution and has been furnished to you solely for your information purpose and must not be reproduced or redistributed to any other person.  Any report is created from Public Source of Information available through Internet from Company website & Other websites & the Research Analyst does not guarantee the Validation of Content in this report

Best FREE Multibagger India

renewable energy multibagger

Subscribe

* indicates required

Multibagger with Expansion Plans | Low PE Ratio | Low Book Value Ratio | Intrinsic Value Discount 70 % | PLUS Free Value Investing Education

Past Multibaggers Bajaj Finance gained 5000% in 10 Years

Discussion on India Stock Market