Castrol India advances as broker maintains 'buy' call

Castrol India jumped 4.26% to Rs 150.65 after a foreign brokerage reportedly maintained its 'buy' rating on the stock and raised the target price to Rs 165 per share from Rs 142 per share.

The Q3CY19 volumes were down sharply in a seasonally weak quarter, while margins still growing on strong realisations and good cost control, the brokerage reportedly said. It raised CY19-21 estimates by +7%/+19%/+14% on cut in the corporate tax rate.

Meanwhile, the S&P BSE Sensex was up 107 points or 0.27% to 40,391.52.

The stock was trading in a range of Rs 145.55 to Rs 151 so far during the day.

Castrol India's net profit rose 25.3% to Rs 188.40 crore on 8.4% decline in net sales to Rs 849.20 crore in Q2 September 2019 over Q2 September 2018.

Castrol India is engaged in providing coke and refined petroleum products. The firm is involved in manufacturing lubricating oils. The company operates through two segments: automotive and non-automotive.

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