Castrol India Limited Fundamental Analysis
Castrol India Limited (CASTROLIND.BO) shows moderate financial fundamentals with a PE ratio of 18.83, profit margin of 16.40%, and ROE of 46.33%. The company generates $58.4B in annual revenue with moderate year-over-year growth of 6.65%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 76.1/100 based on profitability, valuation, growth, and balance sheet metrics. The B grade reflects solid fundamentals with room for improvement in valuation or growth.
Fundamental Health Score
We analyze CASTROLIND.BO's fundamental strength across five key dimensions:
Efficiency Score
ExcellentCASTROLIND.BO demonstrates superior asset utilization.
Valuation Score
ModerateCASTROLIND.BO shows balanced valuation metrics.
Growth Score
ModerateCASTROLIND.BO shows steady but slowing expansion.
Financial Health Score
ExcellentCASTROLIND.BO maintains a strong and stable balance sheet.
Profitability Score
ExcellentCASTROLIND.BO achieves industry-leading margins.
Key Financial Metrics
Is CASTROLIND.BO Expensive or Cheap?
P/E Ratio
CASTROLIND.BO trades at 18.83 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, CASTROLIND.BO's PEG of 12.85 indicates potential overvaluation.
Price to Book
The market values Castrol India Limited at 9.50 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 13.81 times EBITDA. This signals the market has high growth expectations.
How Well Does CASTROLIND.BO Make Money?
Net Profit Margin
For every $100 in sales, Castrol India Limited keeps $16.40 as profit after all expenses.
Operating Margin
Core operations generate 21.65 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $46.33 in profit for every $100 of shareholder equity.
ROA
Castrol India Limited generates $28.24 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Castrol India Limited produces operating cash flow of $6.77B, showing steady but balanced cash generation.
Free Cash Flow
Castrol India Limited generates strong free cash flow of $6.21B, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $6.28 in free cash annually.
FCF Yield
CASTROLIND.BO converts 3.44% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
18.83
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
12.85
vs 25 benchmark
P/B Ratio
Price to book value ratio
9.50
vs 25 benchmark
P/S Ratio
Price to sales ratio
3.09
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.05
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.66
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.46
vs 25 benchmark
ROA
Return on assets percentage
0.28
vs 25 benchmark
ROCE
Return on capital employed
0.64
vs 25 benchmark
How CASTROLIND.BO Stacks Against Its Sector Peers
| Metric | CASTROLIND.BO Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 18.83 | 21.13 | Better (Cheaper) |
| ROE | 46.33% | 1000.00% | Weak |
| Net Margin | 16.40% | -59340.00% (disorted) | Strong |
| Debt/Equity | 0.05 | -0.46 (disorted) | Distorted |
| Current Ratio | 1.66 | 4.95 | Neutral |
| ROA | 28.24% | -2147.00% (disorted) | Strong |
CASTROLIND.BO outperforms its industry in 3 out of 6 key metrics, particularly excelling in Net Margin, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Castrol India Limited's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
90.41%
Industry Style: Cyclical, Value, Commodity
High GrowthEPS CAGR
62.89%
Industry Style: Cyclical, Value, Commodity
High GrowthFCF CAGR
28.33%
Industry Style: Cyclical, Value, Commodity
High Growth