Castrol India shares jumped 18% to Rs 252 on the BSE during Wednesday’s intraday trade, reaching a multi-year high with substantial trading volume. The lubricant company’s stock is approaching its record high of Rs 272, last seen on December 8, 2014. By 02:54 PM, the stock was up 15% at Rs 245.65, while the BSE Sensex saw a modest rise of 0.54%.
Record High Stock Prices
Approximately 103.6 million shares, equating to 10.5% of the company’s total equity, have already been traded on the NSE and BSE. Over the past year, Castrol India’s stock price has more than doubled, soaring by 107%, significantly outpacing the benchmark index’s 23% increase.
Strong Trading Volumes
Castrol India is a leading lubricant company in the country, known for brands such as Castrol CRB, GTX, Activ, POWER1, EDGE, MAGNATEC, and VECTON. The company also operates in specialized segments like high-performance Performance Lubricants and Metal-Working Fluids, catering to industries such as automotive manufacturing, mining, machinery, and wind energy.
Company Growth and Future Prospects
The company anticipates continued growth in automotive lubricants throughout 2024. Castrol India plans to drive this growth by expanding its presence across various price segments, enhancing geographic availability, strengthening its workshop network, and investing significantly in premium brands. Despite reducing its margin guidance to 22-25% from the earlier 23-26%, the company maintains a volume growth target of 4-5% for 2024.
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Management is committed to brand building, expanding the distribution network, and launching new products, which are expected to boost volume and market share. Castrol India remains optimistic about the Indian market, predicting strong lubricant demand until the late 2030s and early 2040s due to low car penetration in the country. Although electric vehicles (EVs) pose a potential threat, their adoption is expected to be gradual.
Learn more about Castrol India on their official website