Author: Prashant Marathe
Date Published: May 21, 2025
🧾 At a Glance
- Revenue (Q4): ₹937.33 Cr
- Net Profit (Q4): ₹91.62 Cr
- EPS (Q4): ₹18.58
- CMP: ₹1,197.90
- EduFair Value: ₹1,400–₹1,500
👉 Verdict: Undervalued, unbothered, and unstoppable.
🏢 About the Company
Gulf Oil Lubricants India Ltd, part of the Hinduja Group, is:
- The country’s top private lube brand
- 💥 Dominates engine oil, industrial grease, transmission fluids
- Serves auto OEMs, railways, commercial fleets, and defence
Gulf is a cash cow with a high dividend yield, minimal debt, and unmatched distribution reach.
📊 Q4 FY25 Snapshot
| Metric | ₹ Cr |
|---|---|
| Total Income | 937.33 |
| Net Profit | 91.62 |
| EPS (Basic, ₹2 FV) | ₹18.58 |
| Net Margin | 9.78% |
🧠 EduInvesting Take
“If Titan had a baby with Castrol, it would look like Gulf Oil — premium brand + recurring cash flow.”
Gulf is:
✅ Consistent
✅ Cash-rich
✅ Debt-free
✅ Scalable
And yet?
Ignored by the market like that one reliable friend no one marries.
🧮 EduFair Value Estimate
- Q4 EPS = ₹18.58 → FY EPS likely ~₹75
- Assign a conservative 18–20x P/E
➡ Fair Value = ₹1,400 – ₹1,500
CMP = ₹1,197.90 → Undervalued by 15–25%
For a company growing EPS every single quarter.
⚠️ Risks
- 🏎️ EV transition = long-term risk to lubricants
- 🧴 Rising crude prices = margin pressure
- 📦 Distribution-driven business = low pricing power
- 🧊 No sexy narrative = fund managers sleep on it
💸 CMP vs Reality
| Metric | Value |
|---|---|
| CMP | ₹1,197.90 |
| EPS (TTM est.) | ₹75.00 |
| P/E at CMP | ~15.97x |
| EduFair Value | ₹1,400–₹1,500 |
| Upside Potential | ~25% |
🏁 Final Word
Gulf Oil is what most investors say they want, but never actually buy:
- Predictable ✅
- Profitable ✅
- Generous with dividends ✅
- Trading at value ✅
Edu Verdict:
If you’re done chasing IPOs and tired of SME heartbreaks…
📦 Park your money in Gulf. Then take a nap.
