1. At a Glance – Grease, Grit & Generous Dividends
Veedol Corporation Ltd (formerly Tide Water Oil) is that rare Indian company which has survived British India, socialist India, liberalised India, and now dividend-hungry India—without losing its lubrication mojo. With a market cap of ~₹2,490 Cr, Veedol is not flashy, not loud, but quietly oils India’s engines while writing fat dividend cheques.
At a CMP of ₹1,429, the stock has been sulking lately (–19% in 3 months), but fundamentals didn’t get the memo. TTM sales stand at ₹2,092 Cr, PAT at ₹194 Cr, ROCE ~23.7%, ROE ~19.8%, and debt is practically a rounding error (₹21 Cr, D/E 0.02).
And then comes the cherry: second interim dividend of 700% (₹14/share) declared with Q3 FY26 results, after an 1100% interim dividend (₹22/share) earlier in the year. Dividend yield? A juicy ~3.8%.
Question for you already:
👉 How many “boring” companies do you know that throw this much cash while trading at ~13x earnings?
2. Introduction – A 1928 Vintage Company in a Tesla World
Founded in 1928, Veedol is older than most Indian investors’ grandparents’ portfolios. Yet here it is—still relevant, still profitable, still minting cash. The company operates in a sector that analysts love to call “mature,” “low growth,” or politely—“yawn.”
But here’s the twist: lubricants are like underwear for machines. Nobody talks about them, but everyone needs them—consistently.
Veedol caters to:
- Two-wheelers
- Passenger cars
- Commercial vehicles
- Industrial machinery
- OEMs who don’t want engine seizures and angry customers
The business doesn’t require fancy capex every year, doesn’t chase loss-making EV dreams aggressively, and doesn’t burn cash on brand ambassadors dancing on SUVs. Instead, it focuses on distribution, formulation, pricing discipline, and dividends.
Is it exciting? No.
Is it dependable? Very.
So the real question is:
👉 Do you want adrenaline… or annuity-like cash machines in your portfolio?
3. Business Model – WTF Do They Even Do?
Let’s simplify Veedol’s business for the smart-but-lazy investor.
Step 1: Buy base oil & additives
Step 2: Blend them into lubricants & greases
Step 3: Slap “Veedol” or “ENEOS” on the can
Step 4: Push through 50 distributors → 650 dealers → 50,000+ retail outlets
Step 5: Collect cash faster than most FMCG companies
Product Buckets:
- Automotive lubricants: 2W, cars, trucks, gear oils, greases
- Industrial lubricants: turbine oils, hydraulic oils, thermic fluids
- Specialities: niche but margin-accretive stuff
Brand Split (Domestic):
- Veedol – 65%
- ENEOS – 35% (via 50:50 JV with JXTG Nippon, Japan)
Manufacturing happens across 5 Indian plants, with total capacity of:
- 105,000 KLPA lubricants
- 6,160 MTPA grease
No overseas manufacturing adventure nonsense—except a UK facility owned by a step-down subsidiary. Sensible. Very 1928-core.
👉 Simple business, boring PowerPoint—but cash keeps flowing. Isn’t that the dream?
4. Financials Overview – Numbers Don’t Lie, They Just Yawn Politely
Quarterly Performance Table (₹ Cr, EPS in ₹)
| Metric | Latest Qtr (Dec’25) | YoY Qtr (Dec’24) | Prev Qtr (Sep’25) | YoY % | QoQ % |
|---|---|---|---|---|---|
| Revenue | 538 | 482 | 509 | +11.5% | +5.7% |
| EBITDA | 52 | 38 | 53 | +36.8% | -1.9% |
| PAT | 44 | 37 | 41 | +18.9% | +7.3% |
| EPS (₹) | 24.99 | 21.43 | 23.50 | +16.6% | +6.3% |
