AnnualReportAI — Business Intelligence
Financial & Valuation Intelligence™

Castrol India Limited

NSE
CASTROLIND
Sector: Oil, Gas & Consumable Fuels· Lubricants
Current Price
₹195.1
Market Cap
₹18.48K Cr
AI Financial Summary

Castrol India Limited (CASTROLIND) demonstrates strong financial health and profitability, underscored by a high ROE and robust interest coverage. Despite moderate revenue and profit growth over the last decade, the company maintains efficient cash conversion and a healthy dividend yield. The current valuation appears to be at a slight premium compared to its calculated fair value, suggesting a need for careful consideration from a value perspective.

Business Performance (CAGR)

10 Years
Revenue
6.1%
PAT
3.9%
EPS
3.9%
Book Value
7.6%
Free Cash Flow
7.2%

Valuation Snapshot

P/E20
P/B10
EV/EBITDA12.9
P/S3.2
Div Yield4.68%

Financial Health

Debt to Equity0.03
Interest Coverage139x
Current Ratio1.51
Cash & Investments₹1.58K Cr

Profitability Metrics

ROE
50.0%
ROCE
65.8%
ROA
28.0%
EBITDA Mgn
23.6%
Op Margin
22.6%
Net Margin
16.6%

Cash Flow Intelligence

Operating Cash Flow₹1.09K Cr
Free Cash Flow₹963 Cr
Cash Conversion114.8%
FCF Margin16.8%

Intrinsic Value

Premium
Estimated Intrinsic Value
████████
Current Price₹195.1
Margin of Safety██.██%
Unlock with Premium

Estimated Intrinsic Value & DCF Fair Value are available with Premium plans.

AI Business Verdict

Castrol India demonstrates robust financial health and profitability, driven by strong operational efficiency and effective capital allocation. While growth has been moderate, consistent cash generation and a healthy dividend yield are notable. The current market price is slightly above its estimated fair value, suggesting that potential appreciation may be constrained unless growth accelerates or the valuation multiple contracts.

  • Exceptional financial health with very low debt and strong interest coverage.
  • High profitability metrics, including robust ROE and ROCE, signify efficient capital utilization.
  • Strong free cash flow generation and efficient cash conversion cycle.
  • Consistent dividend payments offering an attractive yield.

Balance Sheet

AI-Powered Analysis
Balance Sheet Strength™
79/100
Strong

Castrol India Limited shows a strong balance sheet with healthy liquidity, moderate leverage and steady equity compounding.

AI Confidence
92%
Stability
79
Flexibility
92
Strength Factors
Liquidity74
Leverage96
Working Capital68
Asset Quality76
Shareholder Strength68
Financial Stability79
Financial Flexibility™
92/100
Excellent

Capacity to fund growth, withstand downturns and return capital.

Total Assets
₹3.39K Cr
▼ 19.7% YoY
Total Liabilities
₹1.49K Cr
▼ 23.4% YoY
Shareholder Equity
₹1.90K Cr
▼ 16.6% YoY
Net Cash Position
+₹1.52K Cr
Excellent
Debt / Equity
0.03x
Very Low
Enterprise Value
₹16.96K Cr
Capital Structure
Assets
₹3.39K Cr
Equity
₹1.90K Cr (56.0%)
Liabilities
₹1.49K Cr (44.0%)
Debt Intelligence™
Debt vs Cash Trend
Debt / Equity0.03x
Interest Coverage139.0x
Debt / EBITDA0.07x
Net Debt₹-1.52K Cr
Debt Trend (5Y)56.4%
Debt MaturityWell Staggered
Liquidity Intelligence™
Current Ratio1.51
Quick Ratio1.13
Cash Ratio0.76
Working Capital₹729 Cr
Operating Cash CoverageExcellent
Short-term LiquidityGood
Working Capital Intelligence™
CCC Trend
Receivable Days30
Inventory Days35
Payable DaysNot Available
Cash Conversion Cycle65 days
Asset Quality (% of Total Assets)
Cash & Investments33.6%
Property, Plant & Equip.9.8%
ReceivablesNot Available
InventoryNot Available
GoodwillNot Available
Intangible AssetsNot Available
Other Assets88.1%
Shareholder Strength™
Strength Radar
Book Value CAGR (5Y)7.6%
Net Worth CAGR (5Y)7.6%
Retained EarningsGood
Equity Dilution0.00%
Buyback EfficiencyStrong
Dividend Sustain.Strong
Balance Sheet Evolution
Annual
Balance Sheet Risk Monitor
Debt RiskLow
Liquidity RiskModerate
Working Capital RiskModerate
Refinancing RiskLow
Asset Quality RiskModerate
Dilution RiskLow
Contingent LiabilityLow
Overall Balance Sheet RiskModerate
Balance Sheet Stress Test™
Economic Slowdown82
Acquisition Capacity93
High Interest Rates96
Dividend Sustainability80
Revenue Decline83
Cash Flow Resilience86
Expansion Capacity82
Overall Resilience Score
86/100
Strong Resilience
AI Balance Sheet Commentary
Overall Assessment
  • Castrol India Limited shows a strong balance sheet with healthy liquidity, moderate leverage and steady equity compounding.
What Stands Out
  • Net cash position — debt fully covered by cash & investments
  • Large cash & investment reserves
  • Very low leverage with net cash balance
  • High interest coverage
Areas To Monitor
  • Large 'other assets' bucket — investigate composition
Financial data based on consolidated numbers and TTM · Source: Company Filings, Annual Report AI Analysis · Data as of: 31/03/2025