1. At a Glance
Gulf Oil is not just lubricating engines, it’s lubricating investor returns—with 73.47 EPS, 29% ROCE, and a 2.89% dividend yield. While the sector whines about EV disruption, Gulf zooms ahead with margin consistency and strategic EV fluid plays.
2. Introduction with Hook
Imagine a company that makes its money from engines… in an era when people are told not to buy ICE vehicles. Sounds suicidal, right? Well, Gulf Oil Lubricants India Ltd has turned that “EV apocalypse” into a side quest.
- FY25 Profit: ₹362 Cr
- Dividend: ₹48/share
- EPS: ₹73.47
Meanwhile, it’s dabbling in EV fluids, buying into EV charging (Tirex), and still maintains a 13–14% OPM in a commodity-heavy sector. Capitalism, but make it slippery.
3. Business Model (WTF Do They Even Do?)
Gulf Oil = Lube Mafia
Here’s the breakdown:
- Automotive Lubricants: The bread, butter, and the toast. Engine oils, gear oils, greases.
- Industrial Lubricants & Marine Fluids: For machines that don’t sleep.
- Specialty Oils & EV Fluids: Because sustainability is the new fashion trend.
- AdBlue & Coolants: Think of them as lube’s quieter cousins.
- EV Play: 51% stake in Tirex Transmission = charging infrastructure
Channel partners: ~80,000 retailers, 300+ distributors. B2B, OEM tie-ups (Piaggio till 2032, Nayara Energy for distribution). They’re everywhere.
4. Financials Overview
| Year | Revenue (₹ Cr) | Net Profit (₹ Cr) | EPS (₹) | OPM (%) | ROCE (%) | ROE (%) |
|---|---|---|---|---|---|---|
| FY21 | 1,652 | 200 | 39.77 | 16% | 25% | 22% |
| FY22 | 2,192 | 211 | 41.86 | 13% | 23% | 21% |
| FY23 | 2,999 | 232 | 47.39 | 11% | 23% | 24% |
| FY24 | 3,284 | 308 | 62.66 | 13% | 27% | 26% |
| FY25 | 3,554 | 362 | 73.47 | 13% | 29% | 26.3% |
Takeaway: Sales up 60% in 4 years. EPS nearly doubled. OPM stable despite raw material inflation.
5. Valuation
Current Price: ₹1,238
EPS (TTM): ₹73.47
P/E: ~16.9x
Fair Value Range:
- P/E 18x: ₹1,323
- P/E 22x: ₹1,616
- P/E 25x: ₹1,836
Dividend yield at 2.89% is better than most FDs. And they’ve maintained a ~58% payout ratio.
6. What’s Cooking – News, Triggers, Drama
- May 2025: PAT up 17.5%. ₹48 dividend declared (65% payout).
- Dec 2024: EV product distribution partnership with Nayara Energy
- Oct 2023 – Jan 2025: EV thrust continues → 51% stake in Tirex, expanding S-OIL product line
- Credit Rating: ICRA AA+ (Nov 2024). Solid, just like their viscosity index
- Trigger: EV lube growth + Tirex scaling + export demand in marine segment
The company has mastered the art of being “boring but profitable”.
7. Balance Sheet
| Particulars | FY23 | FY24 | FY25 |
|---|---|---|---|
| Equity Capital | ₹10 Cr | ₹10 Cr | ₹10 Cr |
| Reserves | ₹1,169 Cr | ₹1,285 Cr | ₹1,454 Cr |
| Borrowings | ₹373 Cr | ₹358 Cr | ₹455 Cr |
| Total Assets | ₹2,072 Cr | ₹2,304 Cr | ₹2,643 Cr |
Snapshot:
- Debt-controlled, only ₹455 Cr
- Net worth compounding at 20%+
- Very efficient balance sheet. This isn’t a PSU.
8. Cash Flow – Sab Number Game Hai
| Year | CFO | CFI | CFF | Net Cash |
|---|---|---|---|---|
| FY23 | ₹273 Cr | ₹30 Cr | -₹202 Cr | ₹102 Cr |
| FY24 | ₹348 Cr | -₹58 Cr | -₹238 Cr | ₹52 Cr |
| FY25 | ₹423 Cr | ₹49 Cr | -₹153 Cr | ₹320 Cr |
Conclusion:
- Free cash machine.
- Regular reinvestment without drama.
- Dividend backed by actual cash, not Excel sheets.
9. Ratios – Sexy or Stressy?
| Metric | FY23 | FY24 | FY25 |
|---|---|---|---|
| ROCE | 23% | 27% | 29% |
| ROE | 24% | 26% | 26.3% |
| D/E | 0.32 | 0.28 | 0.31 |
| Working Capital Days | 55 | 42 | 41.6 |
| Dividend Payout | 53% | 57% | 65% |
ROCE touching 30%, working capital days falling, and the payout ratio rising = well-oiled machine.
10. P&L Breakdown – Show Me the Money
| Year | Sales | Operating Profit | Net Profit | EPS |
|---|---|---|---|---|
| FY21 | ₹1,652 Cr | ₹265 Cr | ₹200 Cr | ₹39.77 |
| FY22 | ₹2,192 Cr | ₹286 Cr | ₹211 Cr | ₹41.86 |
| FY23 | ₹2,999 Cr | ₹343 Cr | ₹232 Cr | ₹47.39 |
| FY24 | ₹3,284 Cr | ₹419 Cr | ₹308 Cr | ₹62.66 |
| FY25 | ₹3,554 Cr | ₹470 Cr | ₹362 Cr | ₹73.47 |
Smooth as the engine oils they sell.
11. Peer Comparison
| Company | CMP | P/E | ROCE | OPM | M.Cap (₹ Cr) | Div Yield |
|---|---|---|---|---|---|---|
| Castrol India | ₹222 | 23.2 | 55.2% | 23.6% | ₹21,919 Cr | 3.8% |
| Gulf Oil Lub | ₹1,238 | 16.9 | 29.1% | 13.2% | ₹6,104 Cr | 2.9% |
| Veedol | ₹1,697 | 17.0 | 24.0% | 9.8% | ₹2,957 Cr | 3.2% |
| Savita Oil | ₹418 | 23.3 | 11.7% | 4.3% | ₹2,891 Cr | 0.9% |
Observation:
Castrol wins on margins, but Gulf is more diversified, has an EV angle, and trades at a lower P/E. Veedol and Savita? Just background noise.
12. Miscellaneous – Shareholding, Promoters
| Holder | Jun 2023 | Mar 2024 | Jun 2025 |
|---|---|---|---|
| Promoters | 72% | 71.8% | 67.14% |
| FIIs | 3.7% | 7.1% | 7.52% |
| DIIs | 6.4% | 5.9% | 9.53% |
| Public | 17.6% | 16.4% | 15.5% |
Promoters trimmed stake, but FIIs and DIIs are lapping it up. Retail is stable. No red flags.
13. EduInvesting Verdict™
Gulf Oil Lubricants is that rare combo of boring + beautiful. A cash-spewing business, high return ratios, strong dividend record, and a subtle EV push make this a stealth compounder. While Castrol hogs the spotlight, Gulf is laying out a quietly strategic path with its own distribution, Piaggio/Nayara tie-ups, and EV charging ambitions via Tirex.
EVs may disrupt volumes… someday. But until then, Gulf keeps milking the ICE cow, innovates for EVs, and shares the bounty.
Metadata
– Written by EduInvesting Analyst | 18 July 2025
– Tags: Gulf Oil, Lubricant Stocks, EV Fluids, Dividend Stocks, Auto Ancillary, Value Investing
