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Castrol India Limited (CASTROLIND) Fair Value & Analysis

Energy · IN · Market cap ₹183B

CI Castrol India Limited CASTROLIND · NSE
Price₹188.38
Fair Value₹93.64
Upside-50.3%
Quality84/100
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Healthy Growth
Solidly profitable · 16.4% net margin
generates free cash flow
Mixed vs. peers (7/13)
Wide moat 84/100
Evidence: High Range ₹65.31 – ₹159.05 Share as image

Fair value as of: Aug 2, 2026

From 26 valuation models · updated 11 days ago

Fair value updated Aug 2, 2026, revised from ₹121.87 to ₹93.64 (−23.2%) since Jun 29, 2026. Share price +2.6% over the past month.

A strong business, but screening 50% overvalued on our models.

What matters now

  • A high-quality business (quality 84/100), yet the market already pays well above fair value. Quality at a full price, with little margin of safety.
  • The price sits above even our optimistic bull case (₹159.05). The favourable scenario is already priced in.
  • A fairly wide model range (₹65.31 to ₹159.05) leaves room in how you read the outcome.
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Price vs Fair Value (5 years)

₹252.91 ₹79.94 Fair Value ₹93.64 Apr 2021 Aug 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Aug 2, 2026.

How to read this chart

60‑month range ₹79.94 – ₹252.91 · fair‑value band ₹65.31 – ₹159.05 · the ₹188.38 price screens above the ₹93.64 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Aug 2, 2026.

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Analysis

Castrol India Limited (CASTROLIND) currently trades at ₹188.38, while our model-based Fair Value estimate is ₹93.64, implying the stock looks roughly 50.3% overvalued today. The Quality Score stands at 84/100 (high quality), in the Energy sector. Bear case: priced above our estimate, the market already discounts strong expectations. Bull case: above-average quality can justify a premium, the entry price still matters most (evidence: high).

Over the trailing twelve months, Castrol India Limited generated revenue of ₹58.5B at a net margin of 16.4%. Revenue grew 8.7% year over year. It earns a return on equity of 45.5%. The balance sheet holds a net cash position of ₹3.8B. Fundamentals as of Aug 2, 2026

Our scenario range runs from ₹65.31 (bear case) to ₹159.05 (bull case); at ₹188.38, the current price sits above that range. Bear and bull are the same models run on conservative and optimistic assumptions (margins, growth, valuation multiples), so a plausible valuation range, not a price target. The share trades about 15% below its 52-week high and 11% above its 52-week low, currently above its 200-day average. For context, the median of 10 Energy peers we cover trades at -48% fair-value upside, at -50%, CASTROLIND screens richer than that median.

Fair Value models

Each model estimates fair value its own way; the Fair Value above is the evidence-weighted blend. Evidence (0–100) measures how completely this model’s inputs are available: well-fed models carry more weight in the blend. The spread across models is intentional, each one stresses a different value driver; dividend models, for instance, come out structurally low when payout is small.

Model Bear Bear = the cautious scenario: the same model computed with conservative anchors (lower growth, margins and valuation multiples). Together with Bull it frames a plausible valuation range, not a price target.BaseBull Bull = the optimistic scenario: the same model computed with favourable anchors (higher growth, margins and valuation multiples). Together with Bear it frames a plausible valuation range, not a price target. Evidence
Highest evidence
Residual Income ₹55.38 ₹66.06 ₹291.07 76
Growth DCF ₹126.67 ₹185.43 ₹269.46 72
Gordon GGM ₹119.36 ₹248.18 ₹393.71 70
All 26 models by family
DCF Models
FCF DCF ₹124.54 ₹190.77 ₹291.55 38
Owner Earnings ₹113.62 ₹173.82 ₹265.43 31
5Y Revenue Exit ₹76.53 ₹107.58 ₹145.68 39
5Y EBITDA Exit ₹81.88 ₹117.57 ₹157.93 41
5Y P/E Exit ₹104.77 ₹160.29 ₹217.87 38
10Y Revenue Exit ₹91.35 ₹123.73 ₹164.71 36
10Y EBITDA Exit ₹96.24 ₹130.65 ₹174.05 37
10Y P/E Exit ₹110.81 ₹160.28 ₹219.71 35
Earnings-Based
Graham-Dodd ₹65.31 ₹200.95 ₹266.96 54
Lynch FV ₹43.36 ₹61.94 ₹80.53 50
PEG = 1.0 ₹43.36 ₹61.94 ₹80.53 46
EPV ₹92.53 ₹107.20 ₹120.04 59
Dividend Discount
Gordon GGM ₹119.36 ₹248.18 ₹393.71 70
DDM Multi-Stage ₹119.36 ₹196.39 ₹260.47 61
Multiples
P/E Multiple ₹100.84 ₹134.45 ₹168.07 63
P/S Multiple ₹52.06 ₹69.41 ₹86.77 58
P/B Multiple ₹25.94 ₹34.58 ₹43.23 55
EV/EBIT ₹99.02 ₹130.53 ₹162.04 53
EV/EBITDA ₹65.80 ₹86.23 ₹106.67 54
EV/Revenue ₹53.08 ₹73.91 ₹94.73 43
Asset-Based
NCAV (Graham) ₹9.61 ₹12.87 ₹19.21 50
Growth DCF
Growth DCF ₹126.67 ₹185.43 ₹269.46 72
Rev-Margin DCF ₹76.53 ₹109.00 ₹146.76 67
Economic Profit
Residual Income ₹55.38 ₹66.06 ₹291.07 76
ROIC Compounder ₹95.99 ₹115.33 ₹135.10 67
Growth Earnings
Growth-Adj P/E ₹87.39 ₹124.84 ₹162.29 68

Widest divergence: Dividend Discount (₹196.39) versus Asset-Based (₹12.87). Highest evidence: Residual Income (76).

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Key figures & financial health

Revenue (TTM) ₹58.5B
Revenue growth (YoY) +8.7%
Net margin 16.4%
Return on equity 45.5%
Free cash flow ₹10.5B FY2025
P/E ratio 19.1
More key figures
Operating margin 19.5%
EPS (TTM) ₹9.69
EPS growth (YoY) +3.8%
Net cash ₹3.8B FY2025

Figures from reported company fundamentals · as of Aug 2, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 84/100

Of which business quality 81 · Market factors (momentum, volatility) 54

Profitability 94
Margins and returns on capital today
Quality Growth 54
Are margins and returns improving?
Cashflow 73
Earnings quality: real cash, not paper profit
Fin. Strength 85
Balance sheet, leverage, solvency risk
Investment 94
Disciplined investing over empire-building
Low Volatility 100
Calm price path (market factor)
Momentum 38
Price trend over the last 3–12 months (market factor)
52W Momentum 28
Distance to the 52-week high (market factor)
Net Issuance 81
Buybacks instead of dilution

Non-valuation factor families (profitability, growth, cashflow, financial strength, momentum …), each academically grounded. Valuation itself sits in the Fair Value and is deliberately excluded here to avoid double-counting.

About the company

Castrol India Limited manufactures and markets automotive and industrial lubricants in India and internationally. The company offers engine and transmission oils, brake fluids, coolants, cleaners, and greases; EV transmission fluids, thermal fluids, and greases; and brake fluid chain lubricants, fork oils, gear oils, coolants, diesel exhaust fluids, …

Full company description

Castrol India Limited manufactures and markets automotive and industrial lubricants in India and internationally. The company offers engine and transmission oils, brake fluids, coolants, cleaners, and greases; EV transmission fluids, thermal fluids, and greases; and brake fluid chain lubricants, fork oils, gear oils, coolants, diesel exhaust fluids, hydraulic fluids, rust preventives, cleaners, and forming oils. The company offers its products under the Castor EDGE, Castrol's MAGNATEC, Castrol GTX, Castrol ON, Castrol Activ, Castrol POWER1, Castrol GO!, Castrol VECTON, Castrol CRB, and Castrol RX brands. It serves automotive, aerospace, Data centre and IT cooling, machinery manufacturing, power generation, oil and gas, robotics, wind, marine, and other industries. The company was founded in 1910 and is based in Mumbai, India. Castrol India Limited operates as a subsidiary of Castrol Limited.

Company description, as reported by the company or data provider.

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

Castrol India Limited reported revenue of ₹57.2B in FY2025 versus ₹41.9B in FY2021, a compound +8.1%/yr. Reported net income was ₹9.5B in FY2025, compounding +5.8%/yr from FY2021.

Growth Quality 100/100
Revenue growth appears healthy and is supported by profitability and cash-flow quality.
Latest Revenue (FY 2025)
₹57.2B
Latest YoY
+6.6%
Avg. growth/yr (3Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+6.2%
Avg. growth/yr (5Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+13.8%
Avg. growth/yr (21Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+7.3%
Revenue +8.1%/yr
FY21 ₹41.9B
FY22 ₹47.7B
FY23 ₹50.7B
FY24 ₹53.6B
FY25 ₹57.2B
Net income +5.8%/yr
FY21 ₹7.6B
FY22 ₹8.2B
FY23 ₹8.6B
FY24 ₹9.3B
FY25 ₹9.5B
Character of growth · EPS growth decomposed (2014-2025) +5.0 % p.a.
Revenue per share +5.4 pp

of which total revenue +5.4 pp · buybacks/dilution +0.0 pp

EBIT margin −2.1 pp
Tax rate +1.4 pp
Residual (interest, one-offs) +0.4 pp

Absolute contributions in percentage points per year; they sum to the EPS growth rate. Start and end points are 3-year averages (details on hover).

CASTROLIND screens 50% overvalued. Compare with Reliance Industries Limited →

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Cite: Fair Value Calculator (2026). "Castrol India Limited Fair Value". https://www.fairvalue-calculator.com/stock/CASTROLIND

Peer Group

Oil & Gas Refining & Marketing · 113 stocks

How this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.

Quality Score 84 · Top 25%
Fair Value upside −50% · Below median
Return on equity (TTM) 45% · Top 25%
Return on assets 22% · Top 25%
Net margin (TTM) 16% · Top 25%
Operating margin (TTM) 20% · Top 25%
Revenue growth 9% · Above median
Dividend yield (TTM) 0.0% · Bottom 25%

Valuation Multiples vs Oil & Gas Refining & Marketing median · lower = cheaper

P/E (TTM) 19.1× · Pricier than median
P/B 9.65× · Pricier than 75% of peers
P/S (TTM) 3.13× · Pricier than 75% of peers
P/FCF 0.2× · Cheaper than median
EV/EBITDA 13.1× · Pricier than 75% of peers

Snowflake

Five quick dimensions, each 0 to 100: VALUE (fair-value potential), FUTURE (revenue growth), PAST (return on equity), HEALTH (low debt), DIVIDEND (yield). Green = this stock, grey = typical sector peer.

VALUE 0 · sector 17
FUTURE 44 · sector 15
PAST 100 · sector 33
HEALTH 0 · sector 80
DIVIDEND 0 · sector 50

VALUE 0: the price sits above our fair-value range.

Values & ESG

Does this company touch areas you may want to avoid? The classification is inferred from sector and industry.

Oil & gas

ESG scores are not available for this stock yet. Values and ESG data are contextual and can differ between providers.

Similar stocks

10 more Oil & Gas Refining & Marketing stocks, each showing price versus our Fair Value estimate (as of Aug 2, 2026).

Stock Price Fair Value vs Fair Value
Reliance Industries Limited RELIANCE ₹1,293 ₹835.66 -35%
Valero Energy Corporation VLO $309.65 $127.32 -59%
Marathon Petroleum Corporation MPC $283.74 $135.80 -52%
Phillips 66 PSX $196.16 $101.04 -48%
Neste Oyj NESTE €31.10 €4.07 -87%
Formosa Petrochemical Corporation 6505 81.30 TWD 16.68 TWD -79%
Indian Oil Corporation IOC ₹138.96 ₹417.35 +200%
HF Sinclair Corporation DINO $88.59 $48.90 -45%
Bharat Petroleum Corporation BPCL ₹315.55 ₹846.81 +168%
SK Innovation Co 096770 121,400 KRW 58,865 KRW -52%

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Frequently asked questions

Is Castrol India Limited (CASTROLIND) overvalued or undervalued?
As of Aug 2, 2026, our model estimates a fair value of ₹93.64 versus a price of ₹188.38, about −50% (overvalued).
What is the fair value of CASTROLIND?
Our model-based fair value for Castrol India Limited is ₹93.64 (as of Aug 2, 2026), built from audited fundamentals. The current price is ₹188.38.
What is the quality score of CASTROLIND?
Castrol India Limited has a Quality Score of 84/100. It measures business quality (profitability, growth, cash flow, balance-sheet strength, investment discipline, share issuance). Market factors such as price momentum and volatility do not enter the number; they are shown separately in the detail view.
What is the revenue of Castrol India Limited (CASTROLIND)?
Castrol India Limited reported trailing-twelve-month revenue of about ₹58.5B (latest available figure, as of Aug 2, 2026).
What is the net profit margin of CASTROLIND?
The net profit margin of Castrol India Limited is about 16.4%, meaning it keeps roughly 16.4% of revenue as net income. Based on the latest reported figures.

How we calculate Fair Value

Each company is valued through a stack of independent intrinsic-value models (DCF variants, residual-income, multiples and more), blended into one family-balanced consensus and weighted by how much trustworthy data backs it. A separate quality layer scores the fundamentals. Every input is real reported data, nothing guessed.

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