Reasons to invest in Gulf Oil Lubricants

• After its de-merger, the current revenue of Rs.880 cr in FY14 is likely to increase to Rs.1100 cr in FY15 and Rs.1250cr in FY16. 
• This is like a whopping 45% increase. Margins will remain strong at 13% with crude prices falling. 
• Gulf oil lubricants Is running at a big discount to the market leader Castrol India Ltd which has a market cap of about 24000 crores and gulf has only 2200 crores. 
• This means that Castrol is quoting at a pe of 50x and gulf at 22x. This differential has to narrow as gulf is readying itself for 75000 outlets in the next 3 years.

THINK AND DECIDE