SIP Stock ALERT! Know why Castrol India may become a MULTIBAGGER; Anil Singhvi says it can give double returns in a year as compared to FD

Ashish Chaturvedi, Research Analyst at Zee Business has suggested Castrol India as a Strong Investment Portfolio (SIP) Stock. He said that Castrol India is an MNC and British Petroleum is the promoter of the company. Citing more details about the company, the analyst said that the company is in the business of making automotive lubricants and has an excellent brand recall value. The company is also present in more than 70 countries, he added.

Ashish said that all major auto sector companies use the products made by Castrol. talking about the market share he said, "The company holds more than 20 percent market share in lubricant market."
He further added that recovery in the auto sector will directly benefit Castrol India. The analyst informed that the company follows calendar year has reported a good turnaround in Q1 results.

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"The profit of the company has increased by around 94 percent while the top-line revenue has grown by 65 percent. Also, the company is further expected to gradual improvement in future," the analyst added.

Ashish said that institutions have lots of confidence in the company. "DIIs and FIIs hold a significant stake in the company. Around 16.7 percent is with DIIs and FIIs hold around 11.6 percent stake in the company," he said. He said that the company is also doing exclusive tie-ups for growth. "The company has an exclusive tie-up with Jio-BP, KI mobility," he added.

FD का सब्सिट्यूट है ये स्टॉक... आने वाले समय में बनेगा MULTIBAGGER

बेहतरीन फंडामेंटल वाला 'SIP STOCK' Strong Investment Portfolio

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The analyst said the valuation of the stock is also very good and the market is not able to factor it properly.

"There is no debt on the company and the company is cash-rich. It has cash of around Rs 13 per share. Return on capital employed is of 57 percent and return on equity is of 42 percent." He added that the stock can prove to be a multi-bagger in the future.

Speaking about the company, Anil Singhvi, Managing Editor at Zee Business said that stock was recommended earlier in malamal weekly in January 2020 and at that time also the price was at around Rs 130 and it reached at around Rs 160-165 at that time giving returns of around 20 percent.

The Market Guru said that Castrol is an international company with good promoters and even holds the confidence of the institutions.

He said that this stock is a substitute for FD. "If you invest in 6-7 percent of FD then this stock is the substitute for the same."

He said that it can give double returns in a year compared to FD. The Market Guru suggested a short-term target of Rs 180 on the stock.