Castrol India- Today's Pick

Hi Guys,

Castrol India- A smooth flow for both short term and Long term.

In general whenever a stock hits 52 week high there is high possibility for the stock to move further upwards and the same applies for downtrend too. If it has touched it's 52 week low and there are possibilities for the stock to move further down and thus paves the way for good buying opportunity.
Today Castrol India has hit a 52 week low of rupees 129.50 and can be bought at current rate in SIP modes.


It has given nearly 21.31% of negative returns over a year


 *Why to buy?
----------------------
  • It is an automatic and Industrial Lubricant manufacturing giant
  • It owns around 48% of market share in Indian lubricant market.
  • Castrol oil is a fundamentally strong company
  • No 1 interms of it's Market Capital when compared with it's peers such as Continent Petro, GP Petroleums, Gulf Oil Lubric and Tide Water Oil.
  • Curren Market Capital is rupees 12853.65 Crore


 *How does Castrol maintains it's uniqueness with it's sales and profits
---------------------------------------------------------

  1. Castrol Active 4T is an engine oil launched by them for 4 stroke bikes
  2. GTX Magnetic for cars adds more revenue for the firm
  3. Strong tie up with TELCO and LML for sourcing customised lubricants
  4. Tie up for supplying lubricant with Rane Engine Valves
  5. MOU with Mahendra Tractors
  6. In 2012, first gearless scooter engine oil was launched by them
  7. Partnership with Triumph Motorcycles
  8. Extending partnership with Tata Motors

*Bonus History
------------------------
Year and Bonus ratio is shown below

  • 1990 August          3:5
  • 1990 December    3:5
  • 1991 October.       3:5
  • 1992 February.     3:5
  • 1992 September   3:5
  • 1994 January.       1:1
  • 1995 February.     3:5
  • 1999 April.            1:1
  • 2010 February.     1:1
  • 2012 July.               1:1
  • 2017 November.  1:1
*Dividend Percentage
----------------------------------
Dividend percentage from 2001 to till date is shown below

  • 2001-50%
  • 2002-75%
  • 2003-165%
  • 2004-82.50%
  • 2005-82.50%
  • 2006-82.50%
  • 2007-95%
  • 2008-155%
  • 2009-190%
  • 2010-220%
  • 2011-150%
  • 2012-150%
  • 2013-70%
  • 2014-105%
  • 2015-160%
  • 2016-190%
  • 2017-220%
  • 2018-95%
  • 2019-55%

*LIC Holdings
----------------------
LIC holds nearly 10.32% of shares in Castrol



*Daily Moving Average
------------------------------------
30 DMA is 143.39 while
200 DMA is 151.81

*Fundamental Analysis
------------------------------------
  1. Beta value of the stock is 0.56 which indicates that it is a highly stable stock
  2. With Face Value of rupees 5, it's Earning per Share is 7.19x
  3. Profit Margin is 17.95%
  4. Book value per share is 11.78x
  5. EBITDA is 11B
Source:macroaxis.com

Everything looks strong



*Technical Analysis
-------------------------------
  1. Kurtosis is 1.73
  2. Skewness is -0.27
  3. Variance is 2.17
  4. Mean deviation is 1.08

*Z Score
-------------
Z score for this particular stock is zero meaning that it has less probability to face financial stress over next 24months


*Shareholding Pattern
-----------------------------------

Source: Moneycontrol.com

By analysing the share holding pattern we can see that FII's have increased their stake and promoters holding is also in a very decent rate.

Follow my blog for regular updates

Thanks
Sudharsun





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