GP Petroleums Ltd

GP Petroleums Ltd – Dark Horse

GP Petroleums Ltd

GP Petroleums Ltd is a listed entity and a leading lubricant player, specializes in industrial & automotive lubricants, process oils, transformer oils, greases and other specialties under the brand name IPOL in India and overseas market. It is part of Gulf Petrochem, a global conglomerate operating in the oil space, driving international growth with an excellent suite of development projects spread across different continents with firmly established strategic business units (SBUs); Trading (Bitumen, Base Oil , Fuel Oil & Feedstocks, Distillates, Naphtha, Coal, Petcoke, Petrochemicals), Refining, Bunkering, Oil Storage, Shipping & Logistics, Lubes & Greases Mfg. and many others.

GP Petroleums Ltd, a leading lubricant maker and part of US $2.8 Bn UAE-based Gulf Petrochem Group

 GPPL is an ISO 9001, ISO 14001 & OHSAS 18001 certified company, which specializes in formulating, manufacturing and marketing, of Industrial & Automotive lubricants, Process oils, Greases and other Specialties under the brand name IPOL for more than four decades

 With annual consumption of ~2.5 Bn Liters, India is the third largest lubricant market after the US and China and the domestic market is growing at a steady pace.

 In order to strengthen its foothold in domestic automotive lubricant market, the company has tied up with Repsol, the largest oil and Petroleum Company in Spain. Repsol is a very big and renowned global lubricant player and Honda-Repsol tie-up in F1 race is for a very long time. Gulf Petrochem, the parent company has already tied up with Repsol before this strategic relationship. With the tie up with Repsol, the company shows its clear intention to emphasize more on automotive lubricant segment as Repsol is specialized in automotive lubricant segment across the globe.

 GP petro can also leverage its parent company’s technology and global reach for its future growth. . From being an industrial lubricants brand, GP Petroleums wants to make a mark in the consumer-focused auto lubricants business with a newly launched product called Repsol. It is also changing its product mix and lengthening its distribution arm to increase the contribution from auto lubricants.

 The key raw material for manufacturing lubricant is base oil, the price of it is benign even though it is not correlated to Crude oil price

 In the Indian lubricants industry, GP Petroleums is somewhat of an exception as its product mix is overly skewed towards industrial lubricants. It has close to 90 per cent in the industrials business and just 10 per cent of its volumes come from the lucrative auto industry. Ipol, its industrial lubricant, enjoys five per cent of the highly fragmented and unorganized market.

 The Company with its flagship brand IPOL from its industrial division for B2B customers, kick-started the initiative of next-gen product series, which include semi-synthetic cutting fluids for automotive component machining and ester based synthetic cutting oils for Gear manufacturing, showcased during IMTEX 2017.

 GPPL is also major player in the Rubber process industry and offers various types of IPOL process oils to meet the growing demands of the industry which is shifting towards more environment friendly products.. IPOL Industrial lubricants have thus established a significant position in the manufacturing and process Industry.

 

GP Petroleums Ltd balance Sheet

Market Cap.: 453.47 Cr

Current Price: 89 Rs

Book Value: 30.65

Stock P/E: 28.54

Face Value: 5.00

Listed on BSE and NSE

52 Week High/Low: 103.90 / 67.5

 Target 120+ SHORT TERM, One can Buy this stock for long Term @ cmp.