Castrol India Ltd.
ISIN: INE172A01027 • Market Cap: ₹18,680 Cr
The 5-Pillar Quality Audit for Castrol India Ltd.
Evaluated across Profitability, Financial Health, Historical Compounding, Valuation Safety, and Ownership Governance:
1. Profitability & Capital Efficiency
Weight: 25%Measures operating margins (24.4%), Return on Capital Employed (69.5%), and equity compounding (50.0%).
2. Financial Health & Solvency
Weight: 25%Debt-to-Equity is 0.00 with comfortable interest coverage and clean working capital.
3. Growth & Compounding Track Record
Weight: 20%Historical 3Y Sales CAGR (7.0%) and 3Y PAT CAGR (7.1%).
4. Valuation Multiple & Margin of Safety
Weight: 15%Trades at P/E of 17.58 vs PEG of 2.93 and Dividend Yield of 4.6%.
5. Ownership Quality & Governance
Weight: 15%Promoter holding stands at 51.0%, backed by 22.6% institutional ownership.
Key Fundamental Strengths
Superior Capital Efficiency (ROCE: 69.5%)
Castrol India Ltd. generates exceptional return on capital employed of 69.5%, reflecting pricing power and competitive moat.
Robust Equity Compounding (ROE: 50.0%)
Shareholder equity compounds at a healthy 50.0%, exceeding average Indian equity benchmarks.
Fortress Balance Sheet (D/E: 0.00)
The company operates virtually debt-free, shielding net margins from interest rate cycles and monetary tightening.
Attractive Valuation Margin (P/E: 17.58)
Trading at a P/E multiple of 17.58, the stock offers a favourable risk-reward entry for quality compounding.
Areas to Watch & Potential Risks
Sectoral & Macro Headwinds (Oil Gas & Consumable Fuels)
Subject to broader cyclical demand, raw material price shifts, and regulatory frameworks governing the Oil Gas & Consumable Fuels space.
Quantitative Strategy Eligibility
Checking CASTROLIND against established Indian wealth creation frameworks:
Coffee Can Investing Framework
Fails 10%+ revenue growth or 15%+ minimum capital return benchmark over historical periods.
Quality Factor Screener (High RoIC + Low Debt)
Qualifies for Indian Quality Indices with overall score of 79/100 and clean gearing.
GARP / Value-Growth Blend
Provides balanced valuation margin with strong profitability scores.
Oil Gas & Consumable Fuels Sector Peer Comparison
Compare CASTROLIND directly against top industry peers by market capitalization:
| Company | 5-Pillar Score | Market Cap | P/E | ROCE | D/E | Scorecard |
|---|---|---|---|---|---|---|
| Castrol India Ltd. (CASTROLIND)Current | 79/100 | ₹18,680 Cr | 17.58 | 69.5% | 0.00 | — |
| Reliance Industries Ltd. (RELIANCE) | 68/100 | ₹17.69 Lakh Cr | 23.68 | 9.2% | 0.41 | View |
| Oil & Natural Gas Corporation Ltd. (ONGC) | 67/100 | ₹2.99 Lakh Cr | 6.88 | 12.7% | 0.38 | View |
| Coal India Ltd. (COALINDIA) | 73/100 | ₹2.47 Lakh Cr | 7.90 | 19.6% | 0.12 | View |
| Indian Oil Corporation Ltd. (IOC) | 69/100 | ₹1.93 Lakh Cr | 5.73 | 18.9% | 0.55 | View |
| Bharat Petroleum Corporation Ltd. (BPCL) | 72/100 | ₹1.34 Lakh Cr | 7.83 | 25.6% | 0.45 | View |
Frequently Asked Questions: Castrol India Ltd.
Q:What is the 5-Pillar Fundamental Score for Castrol India Ltd. (CASTROLIND)?
Castrol India Ltd. has a RupeeTools Fundamental Score of 79/100, placing it in the 'Solid & Healthy' category. Its pillar scores are: Profitability (95/100), Financial Health (87/100), Growth (55/100), Valuation (70/100), and Ownership Quality (78/100).
Q:Is CASTROLIND fundamentally strong for long-term investment?
Yes, CASTROLIND exhibits solid fundamental strength with a 79/100 score, driven by a return on equity of 50.0% and a debt-to-equity ratio of 0.00.
Q:Does CASTROLIND pass the Coffee Can Investing filter?
No. CASTROLIND does not currently meet the strict 15% ROCE and 10% sustained topline compounding threshold mandated by the Coffee Can investing framework.
Q:How does CASTROLIND compare against other Oil Gas & Consumable Fuels peers?
Within India's Oil Gas & Consumable Fuels sector, CASTROLIND trades at a P/E of 17.58 and generates an ROCE of 69.5%. Compare its 5-Pillar score of 79/100 against top sector peers like Reliance Industries Ltd. (68/100), Oil & Natural Gas Corporation Ltd. (67/100).
Regulatory & SEBI Research Analyst Compliance Disclaimer:
This 5-pillar fundamental score is an automated quantitative health check generated purely from historical public financial statements, corporate filings, and exchange disclosures for educational and informational purposes only. It does NOT constitute investment advice, a stock recommendation, or a solicitation to buy or sell securities. RupeeTools is not a SEBI-registered Research Analyst. Please consult a SEBI-registered financial advisor before making investment decisions.