Castrol India Ltd.
Energy · NSE
52-week range
₹170 – ₹222
From 52w high
-16.8%
RSI (14)
58.4
vs SMA 50 / 200
↑ 50 · ↓ 200
Castrol India (₹184.88) is a lubricants business within the Energy sector, trading 2.0% below its 200-day SMA and down 3.2% over the past 12 months despite reporting a strong recent quarter. The stock carries a dividend yield of 4.73%, trailing PE of 19.1 (forward PE 16.5), and a D/E ratio of 3.31 that has been on a rising trend. Five-year revenue grew at 8.7% CAGR while earnings grew at only 3.8%, a gap that reflects persistent cost pressure or margin dilution over the period.
- ✓FCF positive in 4 of the available historical years, and ROE above 15% in 4 of those same years, indicating a track record of capital generation and returns above cost of equity in most measured periods.
- ✓Dividend yield of 4.73% is notable in the Energy sector context, and the forward PE of 16.5 represents a compression from the trailing PE of 19.1, suggesting earnings are expected to grow relative to current price.
- ✓RSI of 58.4 is in neutral territory and the stock is trading above the 50-day SMA (₹184.88 vs ₹181.14), indicating near-term price momentum is modestly positive over the shorter-term window.
- ✓The most recent quarter was characterised as a strong result against a backdrop of macro uncertainty (Menafn, Apr 2026), with mean analyst rating of 2.0 across 5 analysts on a 1–5 scale (lower = more constructive).
- ✗Price has remained below the 200-day SMA (₹188.45) with a -16.8% drawdown from the 52-week high, reflecting sustained longer-term price weakness not yet reversed by the recent quarterly result.
- ✗Five-year earnings CAGR of 3.8% significantly trails the five-year revenue CAGR of 8.7%, a persistent gap that indicates costs are growing faster than revenue or pricing power is insufficient to protect margins.
- ✗D/E ratio of 3.31 with a rising debt trend is an elevated leverage position for a company in the lubricants segment; combined with a consistency score of 59 and quality score of 48 (4th of 6 peers), the financial profile shows structural vulnerabilities.
- ✗Peer comparison places CASTROLIND in the bottom half of Energy sector peers on both quality score (rank 4 of 6) and PE ranking (rank 4 of 6), while peers such as Coal India carry meaningfully higher quality scores (77) at substantially lower PE multiples (9.1).
- ·Castrol India reported what was characterised as a strong quarter for the period ending March 2026, with the result described against a backdrop of macro uncertainties (Menafn.com, Apr 29 2026).
- ·CASTROLIND appeared in a multi-stock trade spotlight on TradingView (May 5, 2026), though the article covered several stocks; the specific content of the analysis was not available in the data.
- ·News flow is sparse at 2 articles in the current cycle, with 1 positive and 1 neutral, limiting the ability to draw robust sentiment conclusions from the recent coverage.
- ?Given that revenue has compounded at 8.7% over 5 years but earnings at only 3.8%, what are the specific cost drivers or structural margin pressures, and are they expected to persist or normalise?
- ?The D/E ratio of 3.31 is elevated and the trend is rising — what is the capital being deployed toward, and does the return on that incremental debt justify the leverage?
- ?Coal India and ONGC trade at PE multiples of 9–9.2 with comparable or higher quality scores — what characteristics of Castrol India justify its 19x trailing multiple relative to peers in the same sector classification?
- ?FCF has been positive in 4 of the measured historical years — how has FCF trended in the most recent 2–3 years, and is the 4.73% dividend yield supported by current free cash generation?
PE
19.1
Forward PE
16.5
ROE
—
Profit margin
+16.4%
D/E
3.31
Dividend yield
+4.7%
Quality score
48/100
ROE 5y above 15%
4/5 yrs
FCF 5y positive
4/5 yrs
For informational purposes only. Not investment advice. VivaTrades is not a SEBI-registered Investment Adviser or Research Analyst. Market data sourced from public feeds; consult a registered adviser before any investment decision.Analysis generated 11 May 2026.