The shares of Castrol India Limited witnessed a remarkable surge, rising by as much as 10% following the announcement of its Q3 results and the declaration of a substantial dividend. On Tuesday, the shares jumped to ₹193.75 per share from its previous closing price of ₹176.65, leading to heightened interest among investors.
For the quarter ended December 31, 2024, Castrol India reported significant financial improvements. The company’s revenue from operations grew by 7.1% year-on-year (YoY), rising from ₹1,264 crore to ₹1,354 crore. This also reflected a quarter-on-quarter (QoQ) increase of 5.1% from ₹1,288 crore, showcasing solid performance even amid market fluctuations.
The net profit grew by 12% YoY, reaching ₹271 crore for Q3FY25, compared to ₹242 crore for Q3FY24, and marked a remarkable 31% increase from ₹207 crore reported for Q2FY25. The earnings per share (EPS) likewise showed significant improvement, increasing to ₹2.74 from ₹2.45 YoY, instilling confidence among shareholders.
Castrol India also announced a final dividend of ₹9.5 per equity share for the financial year 2024-25. This total includes a special dividend of ₹4.5 per share, with the record date set for March 18, 2025. Such generous dividend payouts underline the company's strong financial health and commitment to its investors.
Management at Castrol is optimistic about the future. Kedar Lele, Managing Director of Castrol India, expressed his enthusiasm, noting, "2024 was a year of significant progress for Castrol India. We introduced meaningful innovations... and enhanced our market reach." The company continues to strengthen its presence, particularly focusing on rural India, where it now reaches over 36,000 workshops and stores as part of its broader network exceeding 143,000 outlets nationwide.
Although Castrol India is making strides, the stock market overall has experienced some turbulence. The BSE OIL & GAS index was at 25,425.1, up 1.9%, and companies like HPCL and Indraprastha Gas were among the top gainers. Castrol's share price—a significant part of this index—moved positively, reflecting not only company-specific news but also overall industry trends.
Within the last year, Castrol's share price has shown resilience, moving from ₹198.1 to its current trading value of ₹199.2. The share price reflects broader market conditions, where many oil and gas stocks have faced headwinds. Over this same timeframe, the BSE OIL & GAS index decreased by 7.7%, highlighting Castrol's ability to buck the trend to some extent.
On the trading front, Castrol’s stock opened today at ₹186.15 before closing at ₹176.65 on the last trading day. It recorded high volumes, indicating strong investor interest. The stock’s trading range over recent sessions has fluctuated, giving traders opportunities based on hourly trading strategies. Today, traders noted buy quantities at 841,976 shares against sell quantities of 1,359,607 shares, displaying active trading behavior.
Castrol has set performance benchmarks for its product lines, such as Castrol EDGE for high-performance cars and CRB TURBOMAX+ CK4, which aim to deliver improved performance across India’s trucking fleet. Lele remarked, "Improving our footprint in rural India is going to be a priority," indicating plans for future growth and expansion.
While Castrol India shares have experienced fluctuations, the overall outlook remains strong—the consensus among analysts leans toward holding the stock, with the median price target estimated at ₹236.0, which is over 20% higher than its current market price. This reflects optimistic expectations from market analysts, bolstered by the company's solid performance metrics.
Moving forward, Castrol plans to deliver high-quality products and services, focusing on customer needs and resilient manufacturing processes as it strengthens its leadership position within the industry. Today's price surge is not just about numbers; it reflects the confidence investors have in Castrol's brand and business model.
With its strategic initiatives and commitment to innovation, Castrol India seems poised to maintain its performance and continue contributing positively to its shareholders and the broader economy.