Broker’s Call: Gulf Oil (Buy)

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Target: INR 813

CMP: INR 417.80

Gulf Indian Oils Company Limited (GOLIL), the second largest lubricant company in India after Castrol, has impressively gained market share and shown resilience over the past three turbulent years.

Lubricant demand is expected to increase due to pickup in the commercial vehicle (CV) cycle, improved freight traffic on national highways, increased industrial production, and increased sales of utility vehicles (UVs). These factors are expected to drive demand for lubricants from the B2B segment, which is responsible for generating 35-40 percent of GOLIL’s lubricant and oil volumes.

is reading: SCINNTC operates a warehouse in Gujarat for Gulf Lubricants

In addition, GOLIL is proactively expanding its dealer network in new geographies to enhance the scope of B2C lubricants business, which generates 60-65 percent of GOLIL’s lubricant and oil volumes with better profit margins compared to B2B business.

Overall, GOLIL’s strategic efforts are expected to positively impact its market share and financial performance, cementing its position as a major player in the Indian lubricant industry.

We initiated coverage on GOLIL with a price target of $813 (10.0X FY 26 P/E) over the next 24 months.