Gulf Oil Lubricants rises 4% on exclusive pact with Piaggio Vehicles

Shares of Gulf Oil Lubricants rallied up to 4.31 per cent at 794.70 per share on the NSE in Wednesday’s intraday deals. Gulf Oil Lubricants share price surged after the company said that it has renewed partnership agreement with Piaggio Vehicles,  a subsidiary of the Italian auto giant Piaggio Group for two-wheeler lubricants. 

 

“This exclusive collaboration, originally signed in January 2020, has now been extended until 2032, reaffirming both organizations' commitment to delivering high-quality, co-branded lubricants tailored to Piaggio's two-wheeler range, including their high performance sports bike and superbike segments,” the company said in a statement on Wednesday. 

 

Under this exclusive agreement, Gulf will continue to be Piaggio India's official lubricant partner, catering to factory fill, workshop services, and retail markets across India, along with select export markets. 

 

Financially, Gulf Oil Lubricants India reported a 15 per cent year-on-year increase in profit after tax (PAT) for Q2 FY25, reaching Rs 84.44 crore, compared to Rs 73.66 crore in the same quarter of the previous fiscal.  

 

The company's revenue from operations grew by 5.86 per cent to Rs 849.33 crore, up from Rs 802.30 crore in Q2 FY24. Gulf Oil Lubricants also recorded an EBITDA of Rs 107.15 crore for the quarter, reflecting a 6.64 per cent growth over Rs 100.48 crore in the corresponding period last year.

 

The company has a total market capitalization of Rs 5,922.34 crore. Its shares are trading at a price to earnings multiple of 17.51 times and at an earning per share of Rs 68.77. 

 

At 1:40 PM; the shares of the company were up 2.36 per cent at Rs 1,204.20 a piece. By comparison, the BSE Sensex was trading 0.62 per cent lower at 80,182.74 level. 

 

Gulf Oil Lubricants India, a part of the Hinduja Group and Gulf Oil International, is a prominent player in India's lubricant market. The company offers a comprehensive range of automotive and industrial lubricants, catering to diverse customer needs.  

 

The company boasts a robust pan-India distribution network for its B2C operations and collaborates with around 40 OEMs and over 1,000 industrial, infrastructure, and institutional clients for B2B services. Its products are also exported to more than 25 countries. Additionally, the company is a leading manufacturer and marketer of the AdBlue® product range, widely preferred by automotive OEMs. GOLIL also holds a top 5 market share in the two-wheeler battery replacement segment, further solidifying its position in the industry.