Castrol India Ltd.
NSE: CASTROLINDCastrol India Ltd.: A 30-second snapshot
Castrol India (₹181.44) is a lubricants manufacturer within the NSE Energy sector, trading 3.3% below its 200-day SMA and down 7.5% over the past 12 months. The business reported a 4.82% dividend yield on a trailing PE of 18.7 (forward PE 16.1), with five-year revenue growth of 8.7% but earnings growth of only 3.8%, pointing to a widening gap between top-line expansion and profit delivery. D/E stands at 3.31 with a rising debt trend, a notable balance-sheet characteristic for this segment.
P/E
18.7
Forward P/E
16.1
ROE
—
Debt / Equity
3.31
Profit Margin
+16.4%
Div. Yield
+4.8%
5Y ROE > 15%
4/5
5Y FCF > 0
4/5
Quality
59/100
News
2 headlines · 2 positive · 0 negative
Recent context
- ·Q1 FY26 earnings and a dividend declaration were highlighted in May 2026 headlines, with one outlet describing the quarter as strong despite macroeconomic uncertainties — though the stock price has not reflected this in the 12-month return.
- ·The stock is currently clustered near a tight resistance band of ₹182.3–₹183.7, with the nearest support levels at ₹178.94 and ₹175.60.
- ·News flow over the current cycle comprises only 2 articles, both positive in sentiment, limiting the breadth of information available to assess recent developments comprehensively.
Strengths
- +Dividend yield of 4.82% is among the higher yields in the Energy peer group, providing an income component that supplements capital-return tracking.
- +Forward PE of 16.1 represents a compression from the trailing PE of 18.7, consistent with market expectations of improving earnings in the near term.
- +FCF was positive in 4 of the tracked years, and ROE exceeded 15% in 4 of the tracked years, reflecting a degree of earnings quality and cash generation persistence.
- +Five-year revenue CAGR of 8.7% demonstrates consistent top-line growth in a mature lubricants market, suggesting stable underlying demand for the product.
Weaknesses
- −D/E of 3.31 with a rising debt trend is elevated for a consumer-facing lubricants business; increasing leverage reduces financial flexibility and amplifies downside during demand slowdowns.
- −Five-year earnings CAGR of 3.8% materially lags revenue CAGR of 8.7%, indicating that cost pressures or margin compression have prevented revenue growth from flowing through to the bottom line.
- −Price is 3.3% below the 200-day SMA (₹187.67) and down 7.5% over 12 months, reflecting sustained underperformance against its own long-term price trend.
- −Quality score of 48 ranks 4th out of 6 peers in the Energy sector, with only placeholder and lower-ranked peers scoring below — placing CASTROLIND in the bottom half of the peer group on composite quality.
Open questions
- ?Does the rising D/E trend reflect deliberate financial engineering (e.g., leveraged dividends, share buybacks) or operational working-capital needs, and how does management describe the trajectory?
- ?Is the gap between 8.7% revenue CAGR and 3.8% earnings CAGR attributable to raw-material cost inflation (base oil prices) or structural pricing constraints, and has that dynamic shifted in recent quarters?
- ?How does Castrol India's lubricants market-share trend compare to private-label and unorganised-sector competitors, particularly as EV penetration in two-wheelers begins to affect engine-oil volumes?
- ?What proportion of the dividend yield is supported by free cash flow versus debt-funded distributions, and is the consistency score of 59 sufficient to underwrite continued payout stability?
Peer comparison: Energy
Ranks 4 of 6 on quality| Symbol | Name | P/E | ROE | Quality |
|---|---|---|---|---|
| CASTROLIND | Castrol India Ltd.You're viewing | 18.7 | — | 48 |
| Industry avg | across 5 peers | 11.6 | +18.6% | 53 |
| COALINDIA | Coal India Ltd. | 9.2 | +28.1% | 77 |
| ONGC | Oil & Natural Gas Corporation Ltd. | 9.9 | — | 54 |
| BPCL | Bharat Petroleum Corporation Ltd. | 4.9 | — | 53 |
| RELIANCE | Reliance Industries Ltd. | 22.4 | +9.1% | 29 |
| DUMMYVEDL3 | Dummy Vedanta Ltd. 3 | — | — | — |
Technical state
Current price
₹181.44
SMA 50
₹181.13
SMA 200
₹187.67
RSI (14)
45.1 (neutral)
From 52w high
-18.4%
1Y return
-7.5%
3M return
-0.1%
50-DMA
Above
200-DMA
Below
Algorithmic support levels
Algorithmic resistance levels
Risk flags
- mediumD/E of 3.31 with a rising debt trend is elevated for a lubricants company operating in an FMCG-adjacent consumer segment, where peers typically carry far lower leverage.
- mediumFive-year earnings CAGR of 3.8% trails five-year revenue CAGR of 8.7%, indicating margin compression or cost pressure that has eroded profit conversion over the period.
- mediumPrice of ₹181.44 sits 3.3% below the 200-day SMA (₹187.67) and is down 7.5% over the past 12 months, reflecting sustained underperformance against its own longer-term trend.
- lowQuality score of 48 ranks 4th out of 6 peers in the Energy sector, placing CASTROLIND in the bottom half of the peer group on composite quality metrics.
- lowNews coverage is sparse at 2 articles in the current cycle, making news-sentiment signals unreliable; analyst rating data is absent (count=5, no mean rating available).
Cross-section contradictions
- Q1 FY26 earnings were described as strong in recent headlines (Apr–May 2026), yet the stock is down 7.5% over 12 months and remains below its 200-day SMA — near-term earnings improvement has not translated into price recovery.
- A 4.82% dividend yield alongside a trailing PE of 18.7 and forward PE of 16.1 projects a value-and-income profile, while rising D/E of 3.31 introduces balance-sheet risk atypical of a defensive dividend payer.
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.
Fundamentals & technicals: refreshed 25 Jun 2026 · refreshed daily at 01:00 IST
AI synthesis (narrative, snapshot, strengths/weaknesses, peer ranking): generated 17 May 2026 · rotates through NIFTY 500 every ~5 days